What you should know about Federal Licenses and Permits?

When starting a business, it is highly important to consider everything from A to Z including federal licenses and permits. While dealing with a lot of things right in the beginning of your business operation you might forget about certain licenses or permits that your business needs. This might cause huge penalties or even termination of your company. Aside from most common licenses, you might also need specific licenses based on your operation type, industry and location. That’s why we have decided to create a guide that will walk you through the whole process of legalizing your business and giving a successful start to it. Let’s get started.

Why do businesses need federal licenses and/or permits?

Every business needs to be licensed to ensure the security and safety first of all itself, its employees and customers. Having the right license and/or permit will guarantee you the protection of your business in case of lawsuit or if your business is damaged.

Governments require business licenses from any type of business whether it is online or offline. This is done so that they can keep track of your income and calculate the taxes you pay, also it ensures whether your business complies with all the laws or not. Some businesses might need extra licenses or permits, usually this depends on the industry or the location of your business operation.

Licenses VS Permits

We are talking about the licenses and permits but didn’t manage to mention their differences. Let’s define both terms one by one.

Licenses

Licenses are used to allow business to do something or sell something. For example, online gambling businesses need licenses to operate in different countries, cities or states.

Permits

However, permits are mostly connected with safety. For example, for carrying a gun, one needs permission. Also, licenses might require test, on the other hand permits might require inspection.

What bodies issue federal licenses and permits?

Federal licenses and/or permits are issued by federal agencies depending on your business type. There is a list of industries that are regulated by federal agencies, in case you find your business type there, then you should get a relevant federal license or permit.

The requirements and feed may vary from business to business and federal agency. Here is a list of businesses that need a federal license or permit, you can also find the link to the federal agency who issues the license/permit to find out more info.

Agriculture - U.S. Department of Agriculture

Alcoholic beverages - Alcohol and Tobacco Tax and Trade Bureau, Local Alcohol Beverage Control Board

Aviation - Federal Aviation Administration

Firearms, ammunition and explosives - Bureau of Alcohol, Tobacco, Firearms and Explosives

Fish and wildlife - U.S. Fish and Wildlife Service

Commercial fisheries - National Oceanic and Atmospheric Administration Fisheries Service

Maritime transportation - Federal Maritime Commission

Mining and drilling - Bureau of Safety and Environmental Enforcement

Nuclear energy - U.S. Nuclear Regulatory Commission

Radio and television broadcasting - Federal Communications Commission

Transportation and logistics - U.S. Department of Transportation

There are also some other types of licenses that your business might need for example state license, local business permits, etc. If you are a newbie, you’d better contact a professional to assist you, not to miss any part or any license/permit before launching your business.