Virtual General Counsel LLC
Virtual General Counsel LLC

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Business formation includes obtaining licenses and permits

| Dec 17, 2018 | Business Formation |

Many entrepreneurs in Colorado will decide that they want to open their own small business. Part of the business formation process includes obtaining any necessary federal and state licenses and permits. These licenses and permits are required by law if the activities the business engages in are regulated by federal or state agencies.

Various federal and state agencies require certain businesses to be licensed. For example, if a business is involved of the manufacturing, wholesale, import or sale of alcoholic beverages including beer, wine and liquor at a retail location, then that business must obtain a license from the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board. Or, if a business is engaged in importing or transporting plants, biotechnology, biologics, animal products or animals, then that business must obtain a license from the U.S. Department of Agriculture. Some examples of businesses that may be regulated by the state include businesses in the construction industry, restaurants and retail stores.

It is important to note that not all licenses are indefinite. Some of them expire after a certain amount of time has passed, necessitating a renewal. Businesses should pay close attention to when they might need to renew a license, as renewal is generally simpler than having to apply for a new license all over again.

If a business is required to be licensed to operate, it is essential that it obtains the necessary license before engaging in such activities. Knowing when a license is required is not always straightforward to those who are new to the business world, and even experienced entrepreneurs may find that regulatory compliance is complicated.