Local Start-Up Requirements for Small Businesses
When starting a business, pay attention to city and county rules.
When you’re starting a small business, pay attention to your town, city, and county regulations. You can begin by asking city and county officials about license and permit requirements for your business.
(For more on federal and state business licenses, see Federal Start-Up Requirements for Small Businesses and State Start-Up Requirements for Small Businesses.)
Ask Your Bureaucrat
If your city does not have a central office that provides business start-up information (and only a few large ones do), there are bound to be many other offices with lots of helpful information for you:
- the city clerk and the county clerk
- the building and safety department
- the health department
- the planning or zoning department
- the tax office
- the fire department
- the police department, and
- the public works department.
The assessor or treasurer can tell you about local taxes on property, fixtures, equipment, inventory, and income or gross receipts. The health department can advise you about permits and regulations if your business involves food preparation. It also needs to test your water if you work in an area where water comes from wells or goes into septic systems.
The police, fire, or building and safety departments can help you with issues of crowd control and safe exit from your premises. The fire department will also be concerned about combustible materials used or stored on your business premises.
Other sources of information. Other unofficial but often extremely helpful sources of information include: the local chamber of commerce, trade associations, contractors who remodel commercial space, other people with businesses like yours, and lawyers who advise small businesses.
Business Licenses, a.k.a. Tax Registration Certificates
In most locations, every business needs a basic business license, sometimes called a tax registration certificate. You usually get the business license from your city or county. However, you may need other permits and licenses as well. No single business license ensures compliance with the numerous licenses, permits, and regulatory requirements that apply to small businesses.
Fictitious Business Names
You may have to register a fictitious business name (the name you do business under, if it does not include your name as the owner) with the county clerk in the county where your business is located. Picking a fictitious business name that no one else is using may involve some research. For more on fictitious business name registration, see Registering Your Business Name.
Zoning Ordinances
Before you sign a lease, you absolutely need to know that the space you plan to rent is properly zoned for your usage. If it’s not, you’d better make the lease contingent on your getting the property rezoned or on your getting a variance or conditional use permit from the planning department.
In some communities, you must have a zoning compliance permit before you start your business in a given location. Zoning laws may also regulate:
- off-street parking
- water and air quality
- waste disposal, and
- the size, construction, and placement of signs.
If you are looking at property in a historic district, you may even need approval to change the color of paint or to modify the building’s exterior.
Keep in mind that you may trigger a zoning compliance investigation when you apply for a construction permit for remodeling or when you file tax information with the municipality.
For more on coping with zoning ordinances, see Dealing With Zoning Problems.
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