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Business licenses and permits: the final step is the city business license

The final step is the city business license!When most business owners talk about "framing their business license" they are referring to the municipal or city business license that authorizes them to do business at their chosen location.

It is very important, especially before you make any permanent location decisions, to check with your city to see if what you plan to do is allowed in the municipal code.

The city planning and zoning office should be able to help you determine what requirements will apply in your case.

There could be some zoning issues relevant to where you live that might have an impact on your business or the type of license and fees you will be assessed.

If there are non-compliance issues, you may have to apply for a variance or what's called a conditional use permit. In such cases, the neighbors will be invited to one or more hearings, which sometimes get a little dicey if the people around you have objections to what you're proposing.

The city will want to know about your business plans so they can judge the impact your business will have on street parking, signage, neighboring schools, ability to provide police and fire protection, and if you plan to store certain fuels, hazardous materials, etc. They will also be interested if you will be keeping animals, fish, birds, etc as part of your business.

If you are starting an information business that will be conducted over the Internet, there should not be any problems with doing business from your residence - termed a "home occupation."

Not too many years ago, many municipalities were a little leery of home Internet businesses simply because they didn't understand what they were. But times have certainly changed.

I'll bet you have neighbors that have home occupation licenses. There are so many eBay businesses, Yahoo stores, and other Internet money-makers these days that most cities will have some experience in granting home occupation permits.

I can tell you that the vast majority of cities welcome this type of business license. Why? Simply because it gives them an added source of revenue (both in licenses and taxes) and has the potential to eventually create jobs in the community if your business really takes off and you end up needing to move to a larger location within the community.

Many cities also have sign ordinances that may limit your business sign location, size, style, and lighting. For most online businesses, a sign will never be needed. In fact, I think the best kind of sign for you may be a nice bumper sticker on your car.

It wouldn't hurt to advertise your "www.yourbusinessname.com" wherever you go around the community!

Once again, the caution is given to check the law first before you hire that sign painter to create your masterpiece.

City business licenses need to be renewed annually, but the fee is usually not exorbitant. In my city, it is $40 per year.

The city is the smallest geographical unit that usually issues a license for business. But be aware, there are some subdivision restrictive covenants that deal with home occupations.

If you live in a gated or controlled community environment, don't be surprised if you are limited in some way (or at least need to get review committee approval) if you want to do business from home.

Since an Internet business doesn't require much physical traffic to your location, you shouldn't have too many neighbor issues.

One final comment about licenses: there is the possibility that some type of federal license might apply to your business situation. This is usually not the case, but in some industries there is a certain amount of federal control.

Chances are good that you will know about the federal requirements of your particular niche. Some of the industries that may be affected include food processing (dairies and meat), communications (radio, TV, cell phones) and securities (investments).

Steve Browne, Business Alone author

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This page contains a single entry from the blog posted on September 24, 2007 7:16 AM.

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