DE Business License Basics
If you own a business in Delaware you are required to have a license to operate. There are many different types of Delaware business licenses and permits that are required by various government entities at federal, state and local levels. An operating license is the basic type of business license that most all businesses will be required to have.
Each level of government has specific regulations and requirements that has to be met before a business can get a license. If you don’t know the licensing rules in Delaware and follow them it could lead to expensive fines and putting your business at risk.
Types of Business Licenses in Delaware
Federal Business Licenses – The U.S. government has a number of agencies that regulate and supervise business activities. If your business participates in one of these federally regulated activities you will need to get a federal business license.
Activities that'll be required to get a federal business license include:
- Alcohol manufacturing, importing and sales
- Agriculture
- Firearm dealing, importing and manufacturing
- Ammunition and Explosives dealing, importing and manufacturing
- Aviation
- Wildlife related activity
- Mining
- Drilling
- Commercial fishing
- TV and radio broadcasting
- Trucking
State Business Licenses – Many Delaware businesses must obtain some type of state business license in order to legally operate. At the very least a business will have to get a professional or occupational license. Delaware business licenses are typically used for tax purposes.
Local Business Licenses – Local Delaware governments and municipalities also grant business licenses. All businesses will be required to get some kind of local business license in order to operate in Delaware.
Permits – Permits are more specific to a certain kind of business within an industry. Permits have a wide variety of purposes from parking to product sales.
How to Get a Delaware Business License
The steps you will need to take to obtain a business license in Delaware will vary depending on which type of business license you need. It doesn't matter what type of license you are attempting to get you will have to fill out application form(s) and supply detailed information about your business.
If you are starting a business or expanding your business you will have numerous forms to fill out. Be prepared to supply your Employer Identification Number (EIN).
The SBA (Small Business Administration) has great online tools for helping business owners decide exactly what type of Delaware business licenses they need to get, links to websites, applications and instructions. If you’re just starting a business and need help with licensing, the SBA is the best place to learn more.
Maintaining Your Delaware Business License
Once you get your Delaware business licenses and permits you must still maintain them year after year to keep them up to date. The guidelines below are recommended in order to ensure your business license is in good standing.
- Make copies of your business licenses and permits.
- Monitor when licenses and permits need to be renewed.
- Follow the regulations for displaying your business license.
- If you intend to change or expand your business be sure to verify whether you need additional permits or business licenses.