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Regulations and Red Tape
Regulations are part of business. Getting through the maze can be one of the most confusing aspects of doing business. While this process may be intimidating, it is important to do it correctly since noncompliance can result in costly penalties.
Even very small or part-time businesses have certain requirements. It is your responsibility to adhere to any and all regulations that apply to your business. Fortunately, there are a lot of people out there willing and eager to answer questions and help you with this task. Don't hesitate to ask.
Are your licenses, permits, and other regulatory requirements up-to-date? The answer is different for every business and in every city, county, and state. You have to start by asking questions. Begin with your city and/or county government. Describe your business and a friendly worker will direct you to the appropriate forms and requirements. Then contact the state and federal agencies that apply to your business. Some common permits include:
- Business License. Permit to operate a business locally. Check with your local business agency.
- Home Occupation Permit.
- Miscellaneous Local Permits. Contact the local business agency.
- Police Permit. Some businesses require police clearance or permit.
- Food Permit. For businesses which make or sell food.
- Seller's Permit. Required in states with sales tax. Apply with the appropriate state agency.
- Liquor License. Regulated by state agencies.
- Building Permits, Fire Certificates, Zoning Permits. Check with your local planning department.
- State Occupational Licenses. Certain occupations (e.g., doctors, lawyers, general contractors, day care providers, etc.) require a special license. Check with the state agency regulating consumer affairs.
- Federal Export Licenses. Get more information on this from the Department of Commerce.
There are a number of optional certifications that can help in some situations. You may want to look into being certified as a small business, minority-owned, woman-owned, or disabled veteran-owned enterprise.
Don't get discouraged with all this paperwork and red tape. Your successful business is the light at the end of all the forms. Remember, there are people willing to help if you feel overwhelmed. Contact your local Small Business Development Center or other local economic development organization.
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