KY Business License Basics
If you own a business in Kentucky you are required to have a license to operate. There are many different types of Kentucky 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 comprehend the licensing rules in Kentucky and follow them it could lead to expensive fines and putting your business in jeopardy.
Types of Business Licenses in Kentucky
Federal Business Licenses – The U.S. government has a number of agencies that regulate and supervise business activities. If your business takes part in one of these federally regulated activities you will have 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 – Nearly all Kentucky businesses will have to obtain some type of state business license in order to legally operate. At the minimum a business will have to get a professional or occupational license. Kentucky business licenses are typically used for tax purposes.
Local Business Licenses – Local Kentucky governments and municipalities also grant business licenses. All businesses will be required to acquire some kind of local business license in order to operate in Kentucky.
Permits – Permits are more specific to a certain kind of business within an industry. Permits have a wide array of purposes from parking to product sales.
How to Get a Kentucky Business License
The steps you will have to take to obtain a business license in Kentucky will vary depending on which kind of business license you have to get. Regardless of 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'll have numerous forms to fill out. Be ready to supply your Employer Identification Number (EIN).
The SBA (Small Business Administration) has great online tools for helping business owners determine exactly what type of Kentucky business licenses they should get, links to websites, applications and instructions. If you’re just starting a business and need help with licensing, the SBA is the perfect place to get more info.
Maintaining Your Kentucky Business License
Once you get your Kentucky business licenses and permits you must still maintain them yearly to keep them current. 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 must 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.