Licenses and permits for your small business

Q: I am about to graduate as a herbal practitioner and want to open an online botanical and aromatherapy store. I will sell herbal substances not for human consumption, like botanical products.

A: Hi Emma,
A shelf of dried herbs reads very differently when the label says not for human consumption, and that wording matters here. You MAY need a business license for the online store, a home occupation permit if you pack orders at home, and a sales tax permit since botanical products are taxable goods. A resale certificate lets you buy herbs and oils wholesale without paying tax twice. Labeling and product rules can apply to aromatherapy items, and your practitioner training does not replace a seller permit. We find out which of these apply to you and fill out the applications. Here is the full map, item by item.

1. Business license: A business license for a sole proprietor MAY ask for the plain nature of your work, your trade name, whether you operate from home and how many people will work with you.
2. Home occupation permit: A home occupation permit MAY apply to a one-person operation at home, usually with limits on customer traffic, deliveries, stored stock and any signage.
3. Sales tax permit: A sales tax permit MAY be needed if you sell goods, since taxable items, resale certificates for wholesale purchases and sales at markets or online each follow their own rules.
4. Trade name registration: Operating under a name other than your own often calls for a registered trade name before you open.
5. Professional or trade permit: Depending on your exact work, a special license for that trade may also apply.
6. Proof of identity: Copies of identification may be requested so the license is issued in the right name.
7. Business bank account details: A bank account in the business name may be asked for to open vendor accounts.
8. Employer registration: Hiring changes the list: an employer account, payroll tax setup and workers' compensation insurance MAY join the pile before day one.
9. Company papers: Depending on how you want to own and name the business, an LLC, a DBA or a tax ID number may come next; we prepare those too.

Why it is worth the paperwork

Working for yourself brings the freedom of your own hours, the aroma of your morning coffee and the pride of your name on the door.

Picture it

Picture Odette signing her first invoice under the name Hollis & Hart Services, with the shiny new license framed beside her desk.

A cautionary example

A supplier claims you owe for a big order and goes after your personal bank account, which an LLC could have protected.

Codes and counts

Business code (NAICS): 561990 (All Other Support Services). This page lists 9 paperwork items for a small business, and each one is marked as something you MAY need, since we confirm which apply.

Tip: Track your mileage, receipts and invoices in one tidy notebook or app from the very first day.

Being a one-person company has one big advantage: every meeting ends the moment you agree with yourself.

Ready when you are: start your order and we will find out what applies to your small business, fill out the applications and keep the paperwork moving.