SESSION SIX: LICENSES, PERMITS & AGREEMENTS
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Licenses and Permits Local licenses and permits
• Local licensing requirements vary. • Check with your local city government.
State licenses and permits
• Certain businesses and professions require a state license. • Check with your local & state government. Federal licenses and permits
• For some businesses, federal licensing is a requirement. © 2011 My Own Business, Inc. All Rights Reserved
entrepreneurcenter.mississippi.org
Licenses and Permits Where do I get a license?
• Start at your local city hall or courthouse. Try the phone book or an internet search.
How about if I am working from home?
• Investigate local zoning ordinances covering home based businesses. • Condominiums and planned communities may have bylaws that could affect your home business.
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entrepreneurcenter.mississippi.org
Business Name or DBA (Doing Business As) What is a DBA?
• A “DBA” (also known as Doing Business As, or as a Fictitious Business
Name) is the legal name decided for your business.
Do I need a DBA?
• Most states require that you get a DBA. • Sole proprietors and general partnerships operating under assumed names may need a DBA certificate. • Helps enforce contracts signed under the business name.
• Open a business checking account and accept checks.
• Without a DBA other businesses may take the name. © 2011 My Own Business, Inc. All Rights Reserved
entrepreneurcenter.mississippi.org
Business Name or DBA (Doing Business As) What is the process of getting a DBA?
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Contact or visit your local city hall or courthouse. Do a name search to make sure name is not taken.
Requirements vary by state.
For the majority of states, corporations are not required to file fictitious business names. Banking under your business name
• Most banks require DBA documentation.
• With a business banking account you can accept checks in your company name. © 2011 My Own Business, Inc. All Rights Reserved
entrepreneurcenter.mississippi.org
Business Name or DBA (Doing Business As) Should I trademark my business name?
• Not required by law but always a good idea. • Trademark provides your business name with protection. • Helpful if you are doing business in multiple states.
What is a seller’s permit?
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Allows you to collect state sales tax. Sellers permit is different from a business license. Keep product and service sales organized separate.
Sales tax is imposed at the retail level, varies in each state.
© 2011 My Own Business, Inc. All Rights Reserved
entrepreneurcenter.mississippi.org
Employer Identification Number (EIN) What is the importance of an EIN?
• Allows you to identify your business on important government forms and official documents. • Wholesale distributors often require either a federal tax ID or a seller’s permit. Do I need an EIN?
• An EIN is Required in some but not all circumstances. • Safer than giving your social security number. • Helps you establish credibility with other businesses.
© 2011 My Own Business, Inc. All Rights Reserved
entrepreneurcenter.mississippi.org
Poll #1: (Harv, please insert this here)
I understand most of my license obligations.
•Yes
•No
I have made sure that all my licenses and
permits are in place for my business.
•Yes
•No
© 2011 My Own Business, Inc. All Rights Reserved
entrepreneurcenter.mississippi.org
Business Agreements You Should Know About
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entrepreneurcenter.mississippi.org
TOP TEN DO’S
1. Determine if you need a zoning compliance permit.
2. Verify with your health insurance carrier if you need a National Standard Employer identifier number.
3. Check on the zoning laws for your business location.
4. Check if you need a special license to do business out of your home.
5. Check to see that the business name you have chosen is not already taken.
6. Get a DBA by going to your local county clerk's office.
7. Get a business license and a federal tax ID number.
8. Open a business banking account in your business name.
9. Get a seller's permit if you need one.
10. Consider registering your trademark. © 2011 My Own Business, Inc. All Rights Reserved
entrepreneurcenter.mississippi.org
TOP TEN DON’TS
1. Don't go into business without a business license.
2. Don't start building without a building permit.
3. Don't go in cold without first consulting with a business attorney.
4. Don't use your social security number as your tax ID number. Get an EIN.
5. Don't choose a business name without first checking to see if it is taken.
6. Don't begin business without verifying zoning requirements.
7. Don't operate under your business name until you have filed for your DBA.
8. Don't forget to check if your business requires state and/or federal licensing.
9. Don't use your personal checking account for your business.
10. Don't fail to collect sales taxes when required.
© 2011 My Own Business, Inc. All Rights Reserved
entrepreneurcenter.mississippi.org
The Entrepreneur Center @ the Mississippi Development Authority
601. 359. 3593
entrepreneurcenter.mississippi.org
© 2011 My Own Business, Inc. All Rights Reserved