Licensing & Permits
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In America the Law is Efficiently Enforced
In the U.S., most businesses need licenses or permits to operate legally, and the requirements vary based on your industry, state, and even your city. This is different from South Africa, where licensing is often centralized or less enforced.
If you don’t get the right permits, you can face fines, business shutdowns, or denial of insurance claims—even if you’re running a small business from home.
What Kind of Licenses Might You Need?
Business Type | Possible Permits or Licenses |
Bakery or Food Truck | Health inspection, food handler permit, fire safety, zoning |
Construction or Handyman | General contractor license, EPA certifications, liability insurance |
Childcare or Tutoring | State certification, background checks, zoning compliance |
Hair/Nail Salon | Cosmetology license, occupancy certificate, sanitation permits |
Online Retail | Sales tax permit, home business license (varies by city) |
Farming or Produce Sales | Agricultural permits, farmer’s market vendor license |
Step-by-Step Guide:
- Use the SBA license tool to look up your specific business and state:
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits - Check your city and county websites – many local governments issue zoning, signage, or home-based business
- Ask your landlord or HOA if you’re running a home-based business. Some housing agreements restrict commercial activity.
- For food businesses: Contact your local health department for inspections and food safety certification.
- For trade or physical services: You may need liability insurance and background checks (e.g., tutoring, childcare and elder care).
Other Helpful Resources:
- Business License Search by State: https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits#state-licenses-and-permits
- State Departments of Revenue (for sales tax licenses): https://www.taxadmin.org/state-tax-agencies
Real Example:
In 2024, 150 immigrants avoided $2,000+ in fines by researching permits ahead of time. One family opened a home bakery in Florida, secured a food handling certificate online for $15, passed a health inspection in 10 days, and legally sold bread at farmer’s markets within 3 weeks.
Common Mistakes to Avoid:
- Assuming you don’t need a license just because your business is small or home-based.
- Forgetting to renew licenses (some must be renewed yearly).
- Relying only on Facebook or Whatsapp advice—rules vary by ZIP code.
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