- What licenses does a new business typically need?
- At minimum: federal EIN, state business registration, state sales tax permit (if selling goods), local business license, and any industry-specific permits (food handler, contractor, professional licenses). Requirements vary by state and industry.
- What happens if a business license lapses?
- Depending on jurisdiction and license type: fines, loss of ability to legally operate, voiding of contracts, loss of liability protection, and in regulated industries (healthcare, finance) criminal penalties. Reinstatement often requires fees plus backdated payments.
- How far in advance should I renew?
- Allow 30-90 days for simple renewals. Regulated professions (contractors, healthcare providers) can take 60-120 days due to background checks and continuing education verification. Never wait for the expiration notice.