Definition: A legal document that offers proof of compliance with certain city
or state laws regulating structural appearances and safety as well
as the sale of products
Depending on the type of business you own, you may need to
obtain some of the following permits to show compliance with local
and state laws:
Seller's Permit If you'll be buying merchandise for
resale in a state that collects sales tax, you'll need a resale tax
number, also called a seller's permit. Suppliers you buy from will
want your number for their files; if you sell to dealers, get their
numbers for your files. That way you'll have a record for why you
haven't collected tax on a sale, which is only collected on sales
to the final user in your state. If you sell to someone in another
state, you're not required to collect taxes for that state--only
the ones in which you maintain offices or stores. If you sell to
dealers who don't have a tax number, you'll have to charge them
sales tax on their purchases.
Where and how do you get such a permit? Agencies issuing permits
vary from state to state; generally the Equalization Board, the
State Sales Tax Commission or the Franchise Tax Board has this
responsibility. Contact the entity that governs taxes in your state
and apply for your resale tax or wholesale permit. You'll have to
provide documentation that proves you're a retailer--make sure to
ask what's acceptable.
Health Department Permit If you plan to sell food, either
directly to customers or as a wholesaler to other retailers, you'll
need a county health department permit. The cost for this permit
varies depending on the size of the business and the amount and
type of equipment you have. The health department will want to
inspect your facilities before issuing the permit.
Fire Department Permit You may need to get a permit from
your fire department if your business uses any flammable materials
or if your premises will be open to the public. In some cities, you
have to get this permit before you open for business. Other areas
don't require permits but simply schedule periodic inspections of
your business to see if you meet fire safety regulations. If you
don't, they'll issue a citation. Businesses such as theaters,
restaurants, nightclubs, bars, retirement homes, day-care centers
and anywhere else where lots of people congregate are subject to
especially close and frequent scrutiny by the fire department.
Air And Water Pollution Control Permit Many cities now
have departments that work to control air and water pollution. If
you burn any materials, discharge anything into the sewers or
waterways, or use products that produce gas (such as paint
sprayers), you may have to get a special permit from this
department in your city or county.
Environmental protection regulations may also require you to get
approval before doing any construction or beginning operation.
Check with your state's environmental protection agency regarding
federal or state regulations that may apply to your business.
Sign Permit Some cities and suburbs have sign ordinances
that restrict the size, location and sometimes the lighting and
type of sign you can use outside your business. Landlords may also
impose their own restrictions--they're likely to be most stringent
in a mall. To avoid costly mistakes, check regulations and secure
the written approval of your landlord before you go to the expense
of having a sign designed and installed.
County Permits County governments often require
essentially the same types of permits and licenses as cities. If
your business is outside of any city or town's jurisdiction, these
permits apply to you. The good news: County regulations are usually
not as strict as those of adjoining cities.