Business Licenses and Permits

The Institute for Justice, a nonprofit group, recently released studies of eight major cities across the country.  The purpose of these studies was to assess business conditions in Milwaukee, Los Angeles, Houston, Washington, DC, Miami, Chicago, Philadelphia and Newark.  The study found varying degrees of complexity in local and state licensing laws.  In addition to business licenses, the studies also explored the relationship between business licenses and zoning laws, particularly regarding home businesses.  The studies found that while many cities may allow home businesses, there are many restrictions in place.  In most cases you may operate a business out of your home, but you can not have employees, you can not have customers come to your home and you can not have a sign for your business.

The Institute for Justice put together a great video summarizing their findings:

Why Can’t Chuck Get His Business Off the Ground?

Do state and local governments make it too difficult to start a business?  Could this red tape be lessened if states and cities put more of this information online or streamlined their processes?  What is clear is that there are many factors to starting a business that most of the public is unaware of. 

Amy Lee, Business License Research Analyst, Corporation Service Company

Tags: business license