If you want to safeguard your house, you need a giant padlock. In the same way, if you wish to protect your business, you need a master license from a genuine authority. But many business owners don’t know the risks of not getting a master business license.
A master business license is an official business document granted by the government, verifying that the business entity has the legal right to operate within its jurisdiction. It also prevents your business from getting sanctioned by the authority for legal actions due to illegal business operations.
Simply put, it’s a certificate that allows you to operate your business freely—without being charged ambiguously for tax violations, labor law violations, or other legal issues.
So, if you’re starting a new business or you need to get a Master Business License for your existing one, here are 6 tips you should know:
1. You Can Obtain Master Business License In Multiple Ways
There are different ways that you can obtain a master business license. One of the most common is to apply for one online. It is especially helpful if you do not live close to any state offices and cannot drive there, as it allows you to submit your application from anywhere in the world. If you have some time on your hands, this route may be more appealing than finding an attorney specializing in these matters.
2. Know Your Local Government Requirements
You must know your local government’s requirements and the different ways to comply with them. It’s not just about getting a license; it’s also about understanding the rules and regulations governing your business. For example, if you’re going to operate under a franchise, you need to know what the franchise laws require of you—and what they don’t.
The requirements for obtaining a master business license vary from state to state, but some are universal. However, to obtain a master business license, you will need to meet the following criteria:
- Must be 18 years of age or older
- Must be a citizen or legal resident of the state
- Must have a valid form of identification
- Shouldn’t have any criminal history
- Must have a valid Social Security number
- Must not have any history of bankruptcy
- Must not have any outstanding tax debts
- You’ll need to provide your name and address, including your business name and the location address
Getting your business the much-needed Master Business License will only take time if you meet all these requirements.
3. Master Business License For Business Has An Expiration Date
Most master licenses have an expiration date. You should know that there are different expiration periods and what they mean for your business. For example, some expire on a specific date (such as January 1), while others allow you to renew them for another period (such as every two years).
You need to renew your license before it expires or risks losing it. If you lose yours, you’ll have to go through the entire process again. So, it’s best to know when these inspections are scheduled without having anyone interfere with your operations.
4. Do Not Pay For Your License In Cash Or Cheque
If you’ve ever had a license before, then you know it’s best to pay for it using a credit card or other form of payment. That is because the state will only give you your Master Business License once they have received confirmation that the money has been taken out of your account.
If this happens and you pay in cash or cheque, then you might find yourself waiting for a long time before getting your license. Additionally, paying in cash or cheque may cause problems later on down the line if an issue with your license needs to be revoked or changed.
5. Not All Licenses Suit Your Business Needs
Not all licenses are created equally. For example, some may not allow you to offer certain services or products that you need to sell your customers. If this is the case, it’s up to you to decide whether or not you want to get another license or forgo that portion of your business altogether. You should also know that each license has different inspection requirements and how often they need to be done.
6. The Process Can Take Months To Complete
When applying for a license, you may think it will only take a few weeks to get your hands on one. However, this is only sometimes the case. In some cases, it can take several months before you have your license and can use it legally.
Indeed, many states have a long backlog of applications and need to process them in order of importance. Also, the state needs to verify your identity and background by running thorough background checks and ensuring that you are not currently wanted by law enforcement.
There you have it, a straightforward guide to getting your Master Business License for your business. You must know the steps and requirements, but it’s also essential that you understand why they’re necessary. The more informed you are about what goes into getting a master’s license, the less likely you’ll be surprised by any surprises along the way.