Starting your business is exciting—it is your chance to turn a passion into a profession or a hobby into a thriving venture. You have created your business—and even registered it with the state—so what comes next?
It is an important question, with an even more important answer: you must determine whether you need to obtain any necessary business permits, licenses, or insurance policies to ensure compliance with government regulations at the federal, state, or local levels.
What Is a Business Permit and Why Is It Important?
A business permit is a government-issued authorization to operate a business within that government’s jurisdiction, in compliance with its laws. The permitting process empowers government authorities to protect the public from fraud, enforce health and safety regulations, and uphold zoning laws.
Business permits can be required at federal, state or even local levels to comply with certain laws depending on your business’s location, industry, ownership structure and operations. Permit requirements vary depending on the nature of your business and its structure and presence —whether you operate online, through a physical storefront, or both. There are several common permits required to operate with a physical storefront, such as: fire department permits, zoning permits, and sign permits.
What Is a Business License and Why Is It Important?
It is common to confuse business permits with business licenses, but they inherently serve different purposes. A permit is usually activity-specific and used to regulate safety, health, and zoning standards, while a license grants your business the legal authorization to operate in the relevant jurisdiction.
A business license allows you to carry out specific business activities that you would otherwise be prohibited from—similar to how a driver’s license allows the holder to operate a motor vehicle. A General Business License, a Professional License and a Sales Tax License are the most commonly required licenses in the State of New Jersey.
What is Business Insurance and Why Is It Important?
The purpose of purchasing insurance is to protect yourself from unforeseen risk. Customers may become disgruntled or litigious if they have an unpleasant experience with your business. For example, a customer may slip and fall inside your brick & mortar business. You may want to consult with an insurance broker to determine which kinds of policies can protect you from the common liabilities your type of business may incur.
Do I Need to Renew My Permit, License or Insurance?
Yes! Compliance does not end once you have obtained these vital documents. Monitoring expiration dates of your permits and licenses, reporting any business changes, maintaining inspection expectations and staying informed of all current regulations are necessary to ensure you continue to operate your business properly and legally.
What Are the Penalties for Violations in New Jersey?
Operating without proper permits, licenses or insurance in New Jersey can expose your business to serious consequences, such as fines, penalties, legal backlash, reputational harm and business closure. In some jurisdictions, failure to obtain a permit or license is even considered a misdemeanor offense.
How Do I Ensure Compliance?
Creating a business requires a dream, a plan, and lots of paperwork. It is easy to lose yourself in the list of requirements and expectations that come with business ownership, but this should not deter you! Business savvy lawyers—like our attorneys at Giro & Associates, LLC—know how important compliance is to your business, and how important your business is to you. Our comprehensive business counseling services help guide you in making informed decisions about structure, licensing, operations, and growth. Working with a knowledgeable legal team is the best way to ensure your business stays compliant and protected.
To determine what your business needs to become and remain compliant, call our River Edge, New Jersey Law Office at 201-502-7834, or send us a message with a brief description of your situation, and we will get back to you right away.