Starting a new business and acquiring business licenses and permits is no joke. A start-up with a unique idea may be exciting since it may be your first business adventure, but procuring licenses and permits is one of the least exciting parts of the journey.
For legal operations, virtually every business needs licenses. However, knowing which is right for your business can be tricky. It all depends on the rules and regulations of the local government and policies set by the federal government to ensure safe and healthy business operations.
Since we must abide by specific rules and regulations for operating a business legally, we must involve state agencies and legal authorities to learn the legal obligations of a new business start-up. Small businesses usually face difficulties setting up a business from scratch since they lack awareness regarding licenses and permits. More often than not, it is better to hire the expertise of legal experts to get the job done right—the very first time!
Lack Of Awareness Can Be Troublesome
Entirely too often, small businesses overlook the need to procure licenses and permits as they may be unaware of the requirements. Entrepreneurs can face heavy penalties and jail time if they fail to pay and register their businesses with the relevant departments.
This failure may be extremely costly to businesses because start-ups can’t afford to pay anything extra for a fine since they already have scarce resources to run their business operations. However, the good news is that now you can acquire the correct license and permit without paying an arm and a leg, assuming you know which permits to register for.
Why Do Businesses Need Licenses and Permits?
Licenses and permits allow businesses to be legally protected by the government. Registering with various government entities, such as the Chamber of Commerce and the Ministry of Trading, will help create more business growth and expansion opportunities.
These government entities promote and support businesses by exposing them to international markets. The legal relationship with the government also allows subsidies (if announced by the government for the specific sector), which is enormous for a start-up’s potential growth and success. It also eases the government, allowing them to track a business’s revenues for tax purposes.
Licenses and Permits—Done Right
Certain types of businesses cannot be initiated without acquiring licenses and permits from the specific departments that come under the direct control of the federal government. We are referring to companies that involve international trading, alcohol, aviation, and agriculture by certain types.
This is why finding an experienced legal expert to execute certain important tasks like licensing and permitting specific industries is critical. Experts can trace and contact federal departments better than we ever could. It’s safe to hire them for a business’s legal affairs and allow the start-up to get the footing it needs.
Managing and Maintaining Licenses and Permits
Studies show that even registered businesses must pay fines and heavy penalties because they fail to manage and maintain their licenses and permits. Acquiring a license is easy, but maintaining it by keeping track of renewal dates is difficult. You should maintain and produce a copy of the licensing application to avoid penalties.
Display the licenses and permits so that customers can see them. If you plan to expand your business operations, either locally or internationally, you may need additional business licenses.
Initially, most businesses used to manage and maintain their licenses independently. However, this responsibility has often been transferred to legal experts who further have professional accountants in the loop for ideal bookkeeping and accounting records to know the exact status of taxes and finances.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.