MA Business License Basics
If you have a business in Massachusetts you are required to have a license to operate. There are many different types of Massachusetts 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 need to be met before a business can get a license. If you don’t comprehend the licensing rules in Massachusetts and follow them it could result in expensive fines and putting your business at risk.
Types of Business Licenses in Massachusetts
Federal Business Licenses – The U.S. government has a number of agencies that regulate and supervise business activities. If your business participates in any 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 Massachusetts businesses will need to obtain some kind of state business license so as to legally operate. At the minimum a business should get a professional or occupational license. Massachusetts business licenses are typically used for tax purposes.
Local Business Licenses – Local Massachusetts governments and municipalities also grant business licenses. All businesses will be required to acquire some sort of local business license in order to operate in Massachusetts.
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 Massachusetts Business License
The steps you will have to take to obtain a business license in Massachusetts will vary depending on which kind of business license you have to get. No matter what type of license you are hoping to get you will need 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 figure out exactly what type of Massachusetts business licenses they should get, links to websites, applications and instructions. If you’re just starting a business and need guidance on licensing, the SBA is the best place to learn more.
Maintaining Your Massachusetts Business License
Once you get your Massachusetts business licenses and permits you must still maintain them yearly to keep them up to date. The guidelines below are recommended if you want 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 want to change or expand your business be sure to verify whether you need additional permits or business licenses.