LICENSES & PERMITS:

In the operating plan of a business plan, be sure to provide the reader with information on any license or permit your planned business venture may require. The licenses and permits required will certainly depend on your particular business endeavor. For instance, an entrepreneur building a licensed restaurant will be required to obtain a liquor license, a building permit, a zoning permit, and a license from the health department for kitchen equipment and ventilation. In addition, the restaurant entrepreneur will be require to register for a federal employer identification number (business number), and possibly local or county permits.  Furthermore, the restaurant entrepreneur will need to discuss these items as well as others in the operating plan.

In general, federal, state, provincial, and local governments require businesses to register or obtain license and permits. For instance, most businesses require a business identification number from the federal government. This is essential for reporting income taxes to the Internal Revenue Service (US residents) or Canadian Revenue Agency (Canadian residents). Most states and provinces require entrepreneurs to register the business name for sales taxes purposes, for instance. Local governments, usually require a business to acquire building permits, register for zoning, register for water, sewage, fire, police, and property taxes, just to name a few. Whatever business you plan to operate, be sure to have all the licenses and permits required by your federal, state/province and local governments.

The following sources should help determine your License and Permit needs.  Once identified, include a brief discussion on each within your Operating Plan.

When you determine the licenses and permits needed, be sure to communicate them to the business plan reader. In other words, list all types and briefly explain each. This will give you and your business plan a great deal of credibility. In addition, if any license or permit requires money, be sure to indicate how much and when payment is scheduled to commence.  For addional information relating to the Components of the Operating Plan, please refer to the section entitled Operating Plan.