State Requirements for Business Filing
by: Blair Woods
The state where your business will be located will require you to get a host of licenses, permits and other requirements as part of your business filing. These requirements can run the gamut from professional licenses, tax registration, and organization of the business filing to even environmental compliance.
States require professional licenses for traditional fields such as doctors, lawyers or accountants. Your state may also require a license for a trade profession such as mechanic, massage therapist or barber. The license can either be issued in the name of the business or directly to the individual performing the service. You can check your state’s website or trade association to determine what occupations require a license and how you obtain one. The procedures for obtaining a license also vary by state and occupation. Your state may require proof of training, a written exam or require you to apprentice with a seasoned person. Part of your business filing may include obtaining a license for products that you sell such as liquor, firearms, lottery tickets or gasoline.
If you are starting a retail business, your business filing will include requesting a seller’s permit or sales tax license. This allows you to collect sales tax from your customers to pay to the state. Even if your business sells products that are tax-exempt, you still want to obtain this permit.
If you are forming an LLC or creating a corporation, part of your business filing will include organizational documents to your state’s Secretary of State or Department of Corporation. You can find sample documents online. Incorporation services can also assist a business owner when you are forming an LLC or a corporation.
If your new business will have employees your state may require you to register with the Department of Labor or comply with the federal Occupational Safety and Health Act (OSHA). Businesses with employees also have a number of tax requirements to follow:
- Obtain a state and federal tax identification number
- Withhold both income and employment taxes
- Report the withholdings to the employee, state and IRS
- Pay the withheld taxes to the tax authorities
Environmental protection should be a key part in your business incorporation filing. Companies that handle, produce or dispose of hazardous material such as chemicals or metals generally require a special permit. States may also require special permits if your equipment vents emissions.
Understanding which licenses or permits are needed for your business can be complex. The Small Business Administration and your state’s website can help you sort through what your business needs to complete your business filing.
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