Laws are vastly different across state borders, and requirements for small businesses will in turn vary depending upon the location of the small business. There are, however, some general rules to follow vis-à-vis state regulation and licensing.
State Certification
Depending upon the specific type of business, many states require business owners to hold licenses issued by the state that prove certification in a particular area of expertise, showing that the business is in fact legally allowed to perform the proffered services. State certification licenses show a certain level of education and training, and verify that these skills are recognized by the state.
The types of business that will need state certification can vary widely, so check with the state in which your prospective business is registered.
Just a few examples of some professions that typically require a state license:
- Real estate professionals
- Mechanics
- Building contractors
- Private medical practices
- Hair salons
- Law firms
- Auctioneers
- Funeral directors
- Private investigators
- Bill collectors
- Private security guards
- Appraisers
- Accountants
- Massage Therapists
Some states also require licenses based on the products being sold by a particular business. Lottery tickets, gasoline, firearms and liquor are just some of the many controlled items that necessitate a state license or certification.
State requirements can vastly different from federal requirements. At time much more stringent and at times surprisingly lenient, it is best to check to see if a particular business requires state certification of any sort before purchasing the company and opening for business.
