One of the critical aspects of setting up a successful business in Delaware is navigating the process of obtaining the necessary licenses and permits. These legal prerequisites ensure that your business operations comply with Delaware regulations, protect your investment, and minimize potential liabilities. Business licenses and permits are as important as registering your business. If you want to start a business in Delaware, you must obtain diverse licenses and permits to run the business.
One must know that registering the business and applying for licenses are not the same in Delaware. There might be some businesses that need to be registered but do not need any licenses or permits. For example, for a graphic designing business, if you create an LLC in Delaware, you must register your LLC with the secretary of state. Still, you don’t mandatorily need to obtain a business license. Delaware, popularly knowns as The First State, has some rules and regulations when it comes to starting a business. You need to apply for state and federal licenses. In many states, you might also need local licenses based on the nature of your business.
In this article, we will explore the ins and outs of applying for business licenses and permits in Delaware. To ensure a smooth application process, we recommend reading this article in its entirety before proceeding with your license applications.
What is Business License and Permit in Delaware
If you’re running a business or are willing to start one, you must know about the licenses and permits. A business license is permission from the government to operate a business of any nature in Delaware. Typically, as a driver’s license allows you to drive your car, a business license allows you to run your business.
Business licenses are different from business registration. The registration process depends on the structure of your business, for example, Delaware LLC. But a business license depends on your industry. For example, a graphic designer may not need to get a license but must register their business in Delaware. So, your LLC might not need a specific license, but if you are selling medical cannabis, you must get the proper license for it.
Most states in the United States need a general business license. Delaware is one of those states where businesses must get this license. Besides, you must get state and federal licenses.
What Do You Need Before You Apply For Business Licenses and Permits
If you’re in the initial step of forming an LLC or any business, you must wait until your business registration in Delaware is done. Once you are done with all the steps to file your business in Delaware, you must be ready with the following documents to apply for the business licenses,
- Name of your business
- Type of your business (Corporation, Partnership, or LLC)
- Phone & Address of your business
- Your business plan that has revenue and expenses
- EIN (Employment Identification Number)
You may need other types of documents before you apply for the business licenses, depending on the business nature. Checking with the local city/county authorities for better information is recommended for clearer information.
–LLCBuddy Editorial Team
How to Apply for Business Licenses and Permits in Delaware
In Delaware, applying for business licenses and permits is easy. Before applying for it, check with the local authority for license requirements. Here, we have shared three broad categories of licenses. One, State permits and licenses. Two, federal licenses, and finally, a professional license.
Step 1: Get State Licenses and Permits in Delaware
Obviously, the state where you will conduct your business must have some license requirements. You need to search for the required permits and licenses in the state. Businesses must apply to the Delaware Division of Corporations for state licenses. You can search for business licenses in several ways. Read about how to do a business license search to know the process and requirements.
In some states, it is mandatory to get a privileged license. Delaware is no doubt a business-friendly state. It is one of the states that do not need to get the privilege license. Businesses must go to the official website of the Delaware Division of Corporations and search for the licenses and permits they require based on their business.
Step 2: Get Federal Licenses and Permits
Once you’re done applying for State licenses, it is time to apply for Federal business licenses. Following are the licenses one must have if they are conducting business in the following fields,
- Agriculture: License issued by The U.S. Department of Agriculture
- Aviation: License issued by The Federal Aviation Administration
- Alcohol & Tobacco: License issued by The Alcohol and Tobacco Tax and Trade Bureau
- Ammunition, Explosive, & Firearms: License issued by The Bureau of Alcohol, Tobacco, Firearms, and Explosives.
- Radio & Television (Broadcast): License issued by The Federal Communications Commission
- Mining & Drilling: License issued by The Bureau of Safety and Environmental Enforcement
- Commercial Fisheries: License issued by The National Oceanic and Atmospheric Administration Fisheries Service
- Wildlife & Fisheries: License issued by The U.S. Fish and Wildlife Service
- Nuclear Energy: License issued by The U.S. Nuclear Regulatory Commission
- Transportation by Sea: License issued by The Federal Maritime Commission
If your business belongs to any of the industries mentioned above, you must obtain state as well as federal licenses.
Step 3: Search for Other State Permits and Licenses in Delaware
Apart from general business licenses and privilege licenses, there might be other licenses and permits that businesses must obtain in Delaware. As I mentioned, business licenses solely depend on the type of industry you are in. Different states have different licensing policies. You must go to the official website of the Delaware Division of Corporations to find out the special licenses your business needs.
You will also find the probate offices in Delaware through the Delaware Division of Corporations website. You can drop by the probate office and find out the details about your licenses. Some common permits, such as building permits, health permits, signage permits, zoning permits, and environmental permits, are required if you’re in a related industry.
Step 4: City-based Permits and Licenses in Delaware
Now, it’s time to consider local authority requirements. Once you’ve completed federal and state formalities, you should check with your local city authorities for any additional permits that may be required. In some cases, certain permits might be issued by local government offices rather than state or federal agencies. As a result, it’s essential to visit your local government office soon after setting up your business to apply for any necessary permits.
Keep in mind that you may come across some licenses that may not seem directly related to your profession. For example, you might not think you need a health permit as a hairstylist. However, it might be a requirement in your city. Such permits help protect you and your fellow Delaware entrepreneurs from potential legal issues.
Step 5: Home-based Business Licence in Delaware
The licensing is different if your business is home-based in Delaware. An initial inspection takes place based on the type of business you are conducting from your home. For example, if you are selling homemade edibles, then it is necessary to check the place’s hygiene. Delaware state and local authorities will visit your home to check if things are good and hygienic. Based on that, you will get the permit or license to run a home-based business in Delaware.
Home-based business licenses are issued on the basis of the nature of your business. Issuance, expiration, and renewal of this type of license are different from conventional state and federal licenses. To know more about home-based business license requirements, do pay a visit to the local revenue office.
Step 6: Get a Professional License in Delaware
This is a special type of license. A professional license is issued only to those with special education, training, and degree. For example, teachers, nurses, doctors, and engineers are eligible to get this license.
In Delaware, professionals like doctors, engineers, teachers, and nurses obtain this license to start working independently in these fields. Professional Licenses are issued by the Delaware Division of Corporations and only to those with special education, degree, and/or training.
How to Maintain Your Business Licenses in Delaware
In Delaware, businesses typically need to maintain two types of licenses: general state and federal licenses and professional licenses. General state and federal licenses usually expire after one year and are automatically renewed, provided the business is in good standing. Once expired, entrepreneurs must pay the annual fees to renew these licenses.
The rules for professional licenses in Delaware are slightly different. In order to maintain or renew a professional license, individuals often need to complete continuing education requirements. For example, a doctor with a professional license must continue studying and training to stay up-to-date with new medical technology and treatments. The professional can renew their license after finishing the required training or education.
FAQs
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Why Delaware Licenses Permits is So Important
One of the primary reasons why Delaware licenses and permits are so important is that they help regulate industries and businesses to ensure they meet certain standards of safety and quality. For example, a restaurant that obtains a food handling permit is required to follow specific guidelines to prevent foodborne illnesses and ensure customer health. Similarly, a construction company that secures the necessary building permits is required to build structures that meet safety codes and regulations to protect workers and residents. In this way, licenses and permits act as a form of protection for both consumers and employees.
Furthermore, Delaware licenses and permits play a critical role in promoting fair competition among businesses. By requiring all businesses to obtain the necessary licenses and permits, the state ensures that each company operates on a level playing field. This prevents unlicensed or unscrupulous businesses from undercutting legitimate businesses that have gone through the proper channels to comply with regulations. As a result, licenses and permits promote healthy competition and help to build trust within the business community.
In addition to regulating safety and promoting fair competition, Delaware licenses and permits also serve as a tool for revenue generation and resource allocation. Businesses that obtain licenses and permits are often required to pay fees, which help fund essential services and infrastructure within the state. These fees can support everything from road maintenance to public safety initiatives. By contributing financially to the state through licensing fees, businesses play a role in supporting the overall well-being of the community.
Another crucial aspect of Delaware licenses and permits is their role in fostering accountability and responsibility among businesses. By requiring businesses to obtain the necessary licenses and permits, the state holds them accountable for their actions and operations. This helps to deter irresponsible or unethical behavior and ensures that businesses are held to a certain standard of conduct. In this way, licenses and permits act as a form of oversight and control to protect the public interest.
Overall, Delaware licenses and permits play a multifaceted and essential role in maintaining order, safety, and integrity within the state. From ensuring safety and quality standards to promoting fair competition and accountability, these permits are a crucial component of a well-functioning business ecosystem. As such, businesses and individuals must recognize the significance of obtaining and complying with licenses and permits to contribute to a thriving and sustainable business environment in Delaware.
Conclusion
In conclusion, the business licenses required in Delaware largely depend on the nature of your enterprise. While some state-specific requirements may exist, the type of business ultimately determines the necessary licenses. Some businesses might not need any licenses or permits to operate. To ensure compliance, it is strongly advised to consult with local authorities about any required licenses and permits for conducting business in your specific city or county within Delaware.