Articles

Business License Requirements: Changes Drive the Need to Revisit Your Strategy

Business License Requirements: Changes Drive the Need to Revisit Your Strategy

Managing business licenses is a tricky but crucial part of doing business. Most enterprise operations require a set of business licenses to be in full compliance. As the business grows and changes, so do its licensing needs. Even the most diligent internal compliance team faces many challenges in keeping business licenses in compliance.

Business Events Affecting Business License Requirements

Throughout the business lifecycle, events occur that require special attention to ensure the enterprise is in compliance with licensing requirements. Examples of those include:

  • When a business is formed it may initially require one set of licenses at multiple levels (ex. state; county; town) to insure it is operating legally.
  • As the enterprise grows, merger and acquisition (M&A) activity may also require a reexamination of license needs.
  • Other expansion activities, including the launch of a new product or service, or opening new business locations, may require additional licensing.
  • Even small changes like renovating an office may warrant new certifications.
  • Additional permits may also be required once a business hits a certain size.
  • The renaming of a business or acquiring a new DBA are grounds for a licensing review.
  • Dissolving a business, closing locations or moving also require a review of licensing requirements.

These events often have implications for compliance. For example, some events may call for a business to apply for new licenses. Other events may require the cancellation of existing certifications.

External Elements Affecting Business License Requirements

Elements outside the control of an enterprise can also have business license compliance implications.

The landscape of licensing requirements is a labyrinth, with needs varying based on business activities and location, as well as industry. The level of regulation a business faces will also affect its licensing needs, with more heavily regulated industries running into more compliance requirements.

Across the U.S., there are thousands of local, state and federal jurisdictions or licensing authorities, each with its own requirements.

  • Governing bodies change their license requirements and forms.
  • Understanding the requirements of one business license filing may not apply to other required filings.
  • A given licensing authority may change the timing and recurrence of the filing requirements.

Complicating this is the fact that information such as the appropriate licensing authority and how to contact them, and their requirements and license types, is often hard to find beyond a basic level. Keeping up requires extensive time either spent on online searches or talking directly with multiple government entities.

Staying In Sync With the Business as it Grows

It’s hard for a growing enterprise to keep track of the myriad of rules and regulations surrounding its business licenses requirements. The potential consequences of missed requirements can be significant.

A trusted expert skilled in the field of business license compliance helps you assess and react to the licensing implications for all business events such as those listed above. Additionally, look for a partner who has insight as to how non-business license compliance events may also have business license implications.

Leveraging their expertise saves time and money, and simplifies one of the most complex aspects of compliance.

Learn More

Learn how CT can help manage the entire lifecycle of your business license needs. Call us at (844) 400-9804 (toll-free U.S.).

Request a Custom Quote

Have a specific question about a product? A CT Specialist will follow up with a custom quote along with a comprehensive assessment of your needs.