FAQ 3. Does my business need a license to operate legally?

Perhaps.  The answer depends on your jurisdiction and industry.

For most businesses, a license is a method local jurisdictions use to tax a business’ revenue or salaries paid to certain occupations.  In some industries, however, federal or state regulators maintain closer oversight and require business in such industries to become licensed or otherwise qualify before they are allowed to operate.

In industries required to collect sales taxes, certain other information may be exchanged with state and local governments through registration before or shortly after operations commence although such registration is not usually considered a “license.”

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