A business license is considered an economic regulation that controls the financial opportunities of a business, which was considered a governmental intervention into market transactions. The recent government regulation challenges of economic affairs include raising the minimum wage, nutrition labels on food products, and warning labels on any product that are considered dangerous.
A business license sets forth your business and makes you accountable. The business license is needed to protect the public health and safety, and to account for your finances and taxes. In a jurisdiction that requires a business license, you cannot legally operate your business without a license. Further, your business may also need to have permits. You will need specialty licenses if you work as a plumber, insurance agent, collection agency, building contractor, real estate broker, automotive mechanic, and personal service providers who would include doctors, nurses, and cosmetologists. The permits may include zoning, building, health department, and seller’s permits. Business licenses and permits are issued by all governmental levels, federal, state, and local.
In California, for instance, all businesses of any type are required to have a Business License. This requirement also applies to businesses in the home, significant businesses, and nonprofits. California does not issue a state business license, for this is the obligation of California cities. Therefore, if you wanted to do business in San Diego, you must obtain a San Diego business license through the city or a professional processor.
The procedure for filing for a business license through the city requires you to contact the city’s Business Registration Department to receive the appropriate paperwork with the application, read carefully and fill out the documents, transport the documents to the city with the required, acceptable payment and wait for the business license approval or follow the procedure outlined by the professional processor. The use of a professional processor is straight forward and uniform. The city procedure for processing a business license in California is not uniform. All businesses operating in the city of San Diego, including home-based businesses, are required to obtain a San Diego Business License.
If you fail to obtain a business license, there can be substantial penalties. These could include interest, possible suspension of your business, and the prospect that your business can be padlocked.