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How to Get a Business License: A Guide to All 50 States

EXCELCAPITAL - Business License

Starting a new business is exciting, but it’s easy to forget some of the more technical work that needs to get done.

Things like getting a business license and figuring out your business taxes might not be fun, but they’re essential to the long-term success of your business. 

The only problem is, the path for obtaining a small business license in your state isn’t always clear. Every state is different, from having an online portal to requiring applications be submitted to a specific authority.

However, if you know where to look and what you need to apply, the whole process becomes much easier. Hence, this guide. 

Below, we’ll cover everything you need to know about getting a business license, including:

  • What is a business license?
  • Industries that require business licensing
  • How much does a business license cost? 
  • Applying for a business license 
  • How to get a business license (in all 50 states)

Let’s get started.

What is a business license? 

If you’re new to starting your own business and you’re not exactly sure what the purpose of a business license is, this section is for you.

A business license is a legal document that gives you the authority to operate a business in your chosen state. That’s about all there is to it.

However, when it comes to actually acquiring a business license, it’s not quite so simple.

That’s because, in many states, there is no “business license”. Instead, it might be a “business permit”, “seller’s permit”, or even a collection of 2-3 licenses and permits you need to obtain to operate your business all depending on your state and industry.

We know, that can make the whole process sound a bit confusing. Fortunately, we’ve simplified everything in this guide, so you’ve got nothing to worry about (read on). 

Industries that require business licensing

As mentioned above, what licenses you need to operate your business depend partly on what state you’re operating in, but also what industry. 

For example, a business which offers alcohol will likely need to obtain a liquor license, a restaurant may need that in addition to a food service license, and a construction company will probably need a general contractor license.

Because each state is different, it’s important to contact your local state authority (or use their online resources) to find out what you’ll need for sure (see your corresponding state’s section below). 

Here are some industries that typically require special licensing:

  • Spirits and alcohol
  • Transportation
  • Radio and T.V
  • Firearms
  • Nuclear energy
  • Agriculture
  • Commercial fishing

How much does a business license cost?

Because the type of business licensing required changes based on state, in addition to countless other unseen factors, the price of obtaining a business license varies from state-to-state as well.

There are two factors which come into play (typically) when it comes to paying for a business license: 

  • The initial license cost: $50-100 for a business license in most states
  • And renewal

Renewal fees tend to be the same as the initial license cost, but they can be less in some cases. 

When you’re getting a business license, it’s typically just for 1 year, with renewal required every year thereafter.

However, as with everything else, this is all dependent upon the type of license(s) and the state. So, check with your local authority to know exactly how much your licensing needs will cost. 

How to apply for a business license

As we’ll talk about in a moment, the application process is a bit different for each state. However, the overarching steps involved are roughly the same. 

Here’s a simple breakdown of the steps involved to apply for a business license in most states:

  1. Check your state’s regulations before applying for a business license. Depending on your type of business, other licenses and documents may be required to operate. Learn everything you’ll need to get your business started in advance so you’re well-prepared. 
  2. Submit application with additional documentation. You’ll likely need to submit additional documentation along with your application. Check what those documents are to make sure you have them in order. After that, make sure you’re submitting your application in the right place. 
  3. Wait for approval. For most states, after applying you’ll need to wait for word of your approval. During this time, state business licensing authorities will double-check the application and additional documentation you provided. 

Now, let’s talk about how to get a business license in your state.

How to get a business license in your state: A guide to all 50 states 

Obtaining a business license, no matter the state, typically only requires a few basic steps.

However, because it’s different for each state, the whole process can be incredibly confusing. 

That’s why we’ve done the work for you. We’ve found out exactly how to apply for a business license in each of the 50 states. So, no matter what state you live in, you’ll find the information you need to get your business license below. 

To find out how to get your state’s business license equivalent, click on the map, dropdown, or text summary below: 

Or you can click the dropdown below to select your state:

Here’s a summary of instructions for obtaining business licensing in all 50 states (listed in alphabetical order): 

How to get a business license in Alabama

Use Alabama’s official AtlasAlabama for information on licenses, business tax numbers, and other useful resources for getting your business started. 

How to get a business license in Alaska

Visit Alaska’s Department of Commerce to find out everything you need for obtaining your business license as well as to apply for and renew your license online. 

How to get a business license in Arizona

Arizona’s Department of Revenue website has information on everything from what licenses you’ll need to how much you’ll pay. You can also apply using their online portal. 

How to get a business license in California 

Use California’s official CalGold portal to get specific instructions on how to get a business license in CA. Simply enter your information and the portal will give you relevant instructions. 

How to get a business license in Colorado 

Colorado’s Business Express online portal offers all the information you’ll need to apply for business licenses online as well as having instructions for manual application. 

How to get a business license in Connecticut

Connecticut’s New Business Checklist is a detailed guide that offers steps for applying for a business license in Connecticut. 

How to get a business license in Delaware 

Delaware has a great One Stop Business Registration & Licensing portal with a useful questionnaire that will direct you to the necessary documents and application resources. 

How to get a business license in Washington D.C.

D.C.’s Business Center has a great guide for figuring out exactly what licenses you’ll need to obtain to become fully established. Once you’ve reviewed that, use their Business License guide to apply for a business license online. 

How to get a business license in Florida

You can obtain information on types of business licenses and apply online at Florida’s Department of Business and Professional Regulation and online portal. To get started select your type of business from the drop-down and the site will guide you through instructions for your industry. 

How to get a business license in Georgia 

Most businesses can apply for business licensing online through Georgia’s online portal licensing service. For more information on what licenses you need and whether you can apply online, see Georgia’s official business license page. 

How to get a business license in Hawaii 

Hawaii’s Business Express is one of the better online portals among the states. Simply follow the instructions and you’ll be guided to which types of licensing you need and how to apply.

How to get a business license in Idaho 

Start by getting information on what licenses and permits your business needs at the official Idaho state website. Once you’re done, you can apply online for your necessary licensing and permits at their official online portal

How to get a business license in Illinois 

Check Illinois official state site for information on your specific licensing needs. If you’re having trouble finding the licensing information you need (the page is a bit of a pain to scroll through), you can use the search icon at the top right.

How to get a business license in Indiana 

Indiana’s licensing regulations are a bit more complicated than most states, but their official state website has put together a well-organized Business Owner Guide that makes it pretty easy to find the information you need as well as instructions for how to get started (and links where relevant). 

How to get a business license in Iowa

Most businesses need a unique type of license based on the industry in Iowa, which their Business License Information Center helps you identify and find next-steps for. 

How to get a business license in Kansas 

Kansas’ Business Center provides all the information you’ll need to get your licensing squared away. However, if legal structures are a bit confusing, check out this guide for more information. 

How to get a business license in Kentucky 

Kentucky has a great One Stop Business Portal that will help you get information on what exact licenses and permits you need as well as help you apply online.

How to get a business license in Louisiana 

Louisiana’s Business Services resource has all the information you’ll need to figure out what licenses and permits you’ll need. To gain access to their online application services, you’ll need to create a separate account to access their online portal. 

How to get a business license in Maine 

Unlike most states, Maine handles its business licensing at the city level. However, Maine’s local government resource will help you identify the right town/city that your business resides in to help get you pointed in the right direction.

How to get a business license in Maryland 

Maryland’s Department of Commerce has a great one-stop portal that makes it easy to identify which licenses you’ll need and apply online. They even have a great welcome video to get you started that helps break everything down. 

How to get a business license in Massachusetts 

Massachusetts’ licenses and permits page will help you find which licenses you’ll need to operate. Once you’ve reviewed that, use their Starting a New Business guide for additional resources for getting started. 

How to get a business license in Michigan 

Some businesses don’t need licensing in Michigan. To find out if you’ll need licensing to operate, check Michigan’s official licensing search. For additional information, review Michigan’s official Guide to Starting and Operating a Small Business

How to get a business license in Minnesota

Minnesota’s online licensing tool will help you find out which licenses and permits you need to operate in Minnesota. You search by topic, agency, or alphabetically.

How to get a business license in Mississippi 

Getting licensed in Mississippi can be a bit confusing as some businesses need both state and local licensing, some only state licensing, and others no licensing at all. To find out what licenses you may need and whether you’ll need to get licensed at the state and/or local level, see Mississippi’s official Small Business Development Center’s FAQ.

How to get a business license in Missouri 

Missouri’s online portal offers information on getting licensed in the state as well as the ability to apply online. 

How to get a business license in Montana

Review Montana’s official state licenses by industry list to find out when licensing you’ll need. You may also need to get licensed at the city level depending on your industry. 

How to get a business license in Nebraska 

Nebraska’s Licensing Division has information on what industries need state-level licensing. If your business doesn’t require state-level licensing, check with your local city governance for information on whether you need to get licensed at the city level. 

How to get a business license in Nevada 

Nevada’s SilverFlume Business Portal has everything you’ll need, including a complete guide to what licensed you may need and how to get licensed 

How to get a business license in New Hampshire 

Review this list at NH’s official Department of Revenue licensing FAQ. If your business doesn’t show up, contact your local city government to find out what licensing you may need beyond that. 

How to get a business license in New Jersey 

New Jersey’s Business Action Center is a complete guide and resource for getting licensed in the state. For more information on where you need to go to obtain specific licenses and permits, see their License and Certification Guide.

How to get a business license in New Mexico 

New Mexico’s licensing portal allows you to apply online. However, keep in mind that licensing may differ between industries and the state vs. local level, so you should also check with local authorities to find out for sure what you’ll need to have in place. 

How to get a business license in New York 

New York’s business wizard has information on what licenses and permits are needed to operate in the state as well as instructions for applying. 

How to get a business license in North Carolina 

NC has an easy-to-use state website and a great business planning checklist to help get you started towards getting licensed and set up in general. 

How to get a business license in North Dakota 

All information regarding licensing, including which licenses are necessary for your business and how to apply, can be found on the North Dakota state website here

How to get a business license in Ohio 

Ohio’s Small Business Development Center has everything you need to find out which licenses you need, how to get licensed, and how to register with the Secretary of State (a requirement for Ohio businesses). 

How to get a business license in Oklahoma

Oklahoma has more varied license requirements, which you can find instructions for obtaining on the Department of Commerce’s Business Licensing and Operating Requirements page

How to get a business license in Oregon 

If you’re in need of more information than just licensing, Oregon’s starting a business guide will help walk you through several important steps to getting yourself established (#6 explains licensing). 

How to get a business license in Pennsylvania 

The Pennsylvania Licensing System is Penn’s one-stop portal for everything related to licensing. Using the portal, you’ll be able to find out which licenses you need to get started as well as steps to applying for all relevant licenses and permits. 

How to get a business license in Rhode Island 

Rhode Island has two great resources for getting your business started. Their starting a business guide walks you through everything you’ll need to start your business. Second, the Department of Business Regulation has a handy list of license needs and the ability to apply online. 

How to get a business license in South Carolina 

Like many states, SC runs their licensing on the city level. However, you can visit South Carolina’s licensing, permits, and registration page for information on getting licensed and their one-stop portal to get the process started. 

How to get a business license in South Dakota 

South Carolina doesn’t have a central portal for information on licensing, but they have a handy PDF guide on licensing and registration here. Visit South Dakota’s official state website for more information on getting your business started. 

How to get a business license in Tennessee 

Tennessee’s business registration and licensing page has all the information you’ll need to figure out which type of license you’ll need to operate (there are a few unique types of licenses) and how to apply. 

How to get a business license in Texas 

The official Texas state website has information on getting licensed via their home page (under Work). For more information on how to get a license and what licenses and permits you might need, see their guides and resources page

How to get a business license in Utah 

Utah’s official Business Licensing and Registration guide has specific instructions for getting licensed in the state. For more information on getting your business started in Utah, check out their Government Requirements page

How to get a business license in Vermont 

Start by looking at Vermont’s professional regulation page for information on what licenses you’ll need to get set up in the state. Vermont doesn’t have an official licensing portal, they instead direct you to the SBA’s Apply for licenses and permits page. 

How to get a business license in Virginia 

For steps on launching a business in Virginia, read their business one stop guide which gives information on starting a business in Virginia. Step number 4 will get you started with specific instructions for getting licensed. 

How to get a business license in Washington 

Washington state’s online business licensing portal offers a simple but straightforward guide to everything you’ll need to get licensed, including when you’ll need a license and how to apply. 

How to get a business license in West Virginia 

West Virginia’s online business portal can help you figure out the specific licenses you’ll need as well as direct you to where you need to apply to get started obtaining those licenses. 

How to get a business license in Wisconsin 

Review Wisconsin’s online business portal to find out what licenses and permits you might need. In addition, you can use their portal apply online and find additional resources.

How to get a business license in Wyoming

Wyoming business permitting and licensing has the perfect online guide that will get you started on the process to getting a business license in Wyoming. For additional questions which the page does not answer, contact the Wyoming Business Outreach Coordinator.

Obtaining your business license– simplified

Obtaining a business license can seem complicated. And, if you don’t know where to look for information on your state’s business license application process, it definitely can be. 

However, with specific information for getting a business license based on your state, the process becomes much simpler.

Just getting your business started? Check out these guides:

How to Get a Liquor License: A Guide to All 50 States

EXCELCAPITAL - LIQUOR LICENSE

How much does a liquor license cost?

So, you’re planning to get a liquor license. 

Whether you’re a preexisting restaurant looking to add alcohol to your menu or a new bar or liquor store preparing to open up, a liquor license can be costly, anywhere from $300 to $14,000 depending on the state.

However, the sale of liquor can be highly profitable as well, with larger profit margins than most goods.

With that said, applying and being approved for a liquor license takes some work.

That’s why in this guide, we’ll walk you through every you need to obtain an alcohol license, no matter which of the 50 states you’re applying for it in (as well as individual resources for each state).

As well as:

  • How to get a liquor license in all 50 states
  • Obstacles to getting a liquor license
  • How to prepare your liquor license application
  • And What to include with your liquor license application

First, let’s break down the basic steps necessary for obtaining a liquor license to elucidate the process: 

How to get a liquor license

Exactly what steps are required for you to get a liquor license depend on what state you’re operating in. 

However, the steps are largely the same, so here’s a quick overview to give you a better idea of what the process will look like:

  1. Contact your state’s liquor board or governing body to determine what specific type of alcohol license you’ll need (most states have several different kinds)
  2. Submit your application along with the necessary paperwork
  3. Wait while your state’s ABC (Alcohol Beverage Control) board reviews your application (up to 6 months)
  4. Upon approval, pay your license fee to activate your license
  5. Renew your liquor license regularly, anywhere between annually to tri-annually depending on the state and license

Now that we’ve clarified the process, let’s talk a bit about some of the challenges involved in obtaining a liquor license. 

The Challenges of obtaining an alcohol license

While the process we laid out above is pretty straightforward, there are several potential challenges along the way that may come up.

Knowing what these challenges are in advance can help you either avoid or plan for them, making the whole process faster and more pain-free. 

The liquor business is highly regulated, as you might imagine. That’s where most of the challenges arise. 

For example, in some states, certain types of alcohol licenses are restricted, meaning only a certain number of businesses may hold that liquor license.

That means if there are no available spots, you may have to go fishing around for a business that is willing to sell their license to you, adding a layer of difficulty to obtaining your license. 

Another potential challenge is location-based. Some states have restrictions in place for offering liquor within a certain vicinity of schools. So, if you’re close to a nearby high school, you may need to consider another location or forgo the license altogether. 

In addition to this, because liquor licenses take up to 6 months for approval, if an issue arises in your application it could mean more delays and a very long wait to finally obtain your license.

These challenges aside, getting a liquor license is relatively straightforward, provided you know where to go to obtain information for obtaining a license in your state. 

How to Get a Liquor License in All 50 States

While obtaining a liquor license is a bit of a difficult process, it can prove to be worth the wait and effort for many businesses.

The only thing left to do at that point is to find out how to obtain a liquor license in your state. 

The National ABC Association state list and directory includes a list of all 17 participating states and can give you information about obtaining a liquor license, including liquor pricing and other details, if your state falls within their jurisdiction. 

However, for a complete directory of all 50 states, including where to find out more information about how to get an alcohol license in your state, click on the below map, dropdown, or see the text list below this with a summary of instructions for all 50 states: 

Or you can click the dropdown below to select your state:

Here’s a summary of instructions for obtaining a liquor license in all 50 states:

How to get an Alabama liquor license

To get a liquor license in Alabama, complete a pre-application along with necessary checklist. Once that’s done, set up an appointment with Alabama’s ABC licensing office for your county. 

Price: $100 – $1,000 (Depending on the type of license)

How to get an Alaska liquor license 

To get a liquor license in Alaska, complete and notarize your liquor license application and display it at your place of business for 10 days before submitting you the Alaska ABC board.

Price: $50 – $2,500 (Depending on the type of license)

How to get an Arizona liquor license 

To get a liquor license in Arizona, review the types of licenses here then use the Arizona Department of Liquor portal to register for an account and submit your application. 

Price: $100 – $2,000 (Depending on the type of license)

How to get an Arkansas liquor license 

To get a liquor license in Arkansas, review the types of licenses with the Arkansas ABC, then mail your completed application to the Arkansas ABC office along with:

  • Background check
  • ABC seminar attendance proof
  • And entertainment form

Price: $100 – $3,000 (Depending on the type of license)

How to get a California liquor license 

To get a liquor license in California, you can apply at the nearest California ABC office

How to get a Colorado liquor license 

To get a liquor license in Colorado, review steps with the Colorado Department of Revenue’s Liquor & Tobacco Enforcement website. They have a portal where you can submit your application, but you must first be approved at the local government level first (see link for instructions). 

How to get a Connecticut liquor license 

To get a liquor license in Connecticut, review the types of licenses and complete this application, then submit your application along with payment to a drop box at the Department of Consumer Protection Self-Service Center

Price: $60 – $2,750 (Depending on the type of license)

How to get a Delaware liquor license 

To get a liquor license in Delaware, apply using the OABCC’s (Office of Alcoholic Beverage Control Commissioner) online portal

How to get a Florida liquor license 

To get a liquor license in Florida, review the types of licenses here, fill out your application, then submit it along with supporting documentation and application fee to your local Alcohol, Beverage, & Tobacco Division office.

Price: $400 application fee

How to get a Georgia liquor license 

To get a liquor license in Georgia, you must obtain a local alcohol license, state alcohol license, and a Federal Basic Permit. First, apply for a local license with local government authorities, then apply for a state license here through the Georgia Tax Center portal

Price: $10 – $1,000 (Depending on the type of license)

How to get a Hawaii liquor license 

To get a liquor license in Hawaii, it all depends on what county your business sits in. For liquor licenses for the country of Honolulu, visit the Honolulu Liquor Commission to view the types of available licenses and submit your application. 

Price: $45 – $5,940 (Depending on the type of license)

How to get an Idaho liquor license 

To get a liquor license in Idaho, submit your application and documentation to the Idaho state ABC. Keep in mind that obtaining a liquor license in Idaho is known for being more difficult in many other states due to a heavily restricted quota system (which many states have, but is not nearly as strict). 

How to get an Illinois liquor license 

To get a liquor license in Illinois, visit the Liquor Control Commission’s portal for application and instructions. 

Price: $750 

How to get an Indiana liquor license 

To get a liquor license in Indiana, view the types of licenses and application instructions at the ATC (Indiana Alcohol and Tobacco Commission) online portal, where you can also submit your application. 

How to get an Iowa liquor license 

To get a liquor license in Iowa, use the State of Iowa Alcoholic Beverages Division online portal to view licenses, applications, and submit online. 

How to get a Kansas liquor license 

To get a liquor license in Kansas, use the Kansas Department of Revenue’s ABC department online portal to view licenses and apply online. 

How to get a Kentucky liquor license 

To get a liquor license in Kentucky, use the Kentucky ABC online portal to view licenses and application information (applications must be mailed or faxed). 

Price: $30 – $7,730 (Depending on the type of license)

How to get a Louisiana liquor license 

To get a liquor license in Louisiana, view the types of licenses here and submit an application. The Louisiana Office of Alcohol and Tobacco Control requires you display your intent to apply for a license in a local newspaper as well. 

Price: $320 for beer and liquor permit within a city

How to get a Maine liquor license 

To get a liquor license in Maine, follow these instructions from the Maine Bureau of Alcoholic Beverages & Lottery Operations.

How to get a Maryland liquor license 

To get a liquor license in Maryland, fill out the application here and follow these instructions at the Comptroller of Maryland’s website.

Price: $600 application fee

How to get a Massachusetts liquor license 

To get a liquor license in Massachusetts, complete an application plus a CORI (Criminal Offender Record Information) form. Whether you can apply online or not depends on what city you’re applying in. 

Price: $200 application fee

How to get a Michigan liquor license 

To get a liquor license in Michigan, download the license application at the Michigan Department of Licensing and Regulatory Affairs website here and review the instructions. 

Price: Up to $1,000

How to get a Minnesota liquor license 

To get a liquor license in Minnesota, start by contacting your local government for an application. Once you’ve been approved, you can submit your application to the Minnesota Department of Public Safety Alcohol and Gambling Enforcement

How to get a Mississippi liquor license 

To get a liquor license in Mississippi, complete this application then submit it to the Mississippi ABC office

Price: $45 – $9,025 (Depending on the type of license)

How to get a Missouri liquor license 

To get a liquor license in Missouri, complete this application and submit it to one of 3 labelled Alcohol and Tobacco Control offices depending on your location. 

Price: $300 application fee

How to get a Montana liquor license 

To get a liquor license in Montana, follow the Montana Department of Revenue’s online portal instructions. 

Price: $400 – $800 (Depending on the type of license) + $400 processing fee

How to get a Nebraska liquor license 

To get a liquor license in Nebraska, complete the Nebraska State liquor license application here and mail it to the Nebraska Liquor Control Commission.

Price: $400 application fee

How to get a Nevada liquor license 

To get a liquor license in Nevada, call your local county office that handles business licenses and complete an application here. Contact the Nevada Alcoholic Beverage Control if you have trouble locating the correct office. 

Price: $500 application fee

How to get a New Hampshire liquor license 

To get a liquor license in New Hampshire, fill out this form to request an application. Once you’ve received your application, follow these instructions depending on what type of license you need. 

Price: $100 filing fee

How to get a New Jersey liquor license 

To get a liquor license in New Jersey, contact your local ABC board for a copy of the application and review these application instructions

Price: $200 filing fee

How to get a New Mexico liquor license 

To get a liquor license in New Mexico, it is suggested you get in contact with liquor license broker as there are a limited number of liquor licenses in the state of NM due to a quota system. You can find more information here

Price: $200 application fee

How to get a New York liquor license 

To get a liquor license in New York, review the types of licenses here as well as instructions on how to apply. Fingerprint cards are required to apply and you must notify your municipality of your intent to apply for a liquor license by using a Standardized Notice Form. You can then submit your application after waiting 30 days.

How to get a North Carolina liquor license 

To get a liquor license in North Carolina, use their ABC online portal for all information related to license types and application submission. 

Price: $100 – $1,000 (Depending on the type of license)

How to get a North Dakota liquor license 

To get a liquor license in North Dakota, submit this application and use the key at the bottom of the document to determine the exact licensing fee, then send the application to the Office of the Attorney General. 

How to get an Ohio liquor license 

To get a liquor license in Ohio, review these steps provided by the Ohio state government. 

Price: Up to $2,344 + $100 processing fee 

How to get an Oklahoma liquor license 

To get a liquor license in Oklahoma, use the ABLE (Alcoholic Beverage Laws Enforcement) commission portal

Price: $55 application fee

How to get an Oregon liquor license 

To get a liquor license in Oregon, review the type of license you’ll need, then find the corresponding application here and follow the outlined instructions. The OLCC (Oregon Liquor Control Commission) will then give you a copy of your application to take to your local city government. 

How to get a Pennsylvania liquor license 

To get a liquor license in Pennsylvania, email ra-lblicensingmod@pa.gov to request an access code to the PLCB+ portal. Once you receive it, register through the portal system to get all the information you need. 

How to get a Rhode Island liquor license 

To get a liquor license in Rhode Island, use the state’s ELicensing portal. Register for a new account and you’ll be able to review the types of licenses and submit your application.

How to get a South Carolina liquor license 

To get a liquor license in South Carolina, review the types of licenses for SC then submit your application to the Department of Revenue. 

Price: $5 – $2,200 (Depending on the type of license) + $200 – $300 filing fee

How to get a South Dakota liquor license 

To get a liquor license in South Dakota, contact your county auditor for all basic information (you can find more information here). 

How to get a Tennessee liquor license 

To get a liquor license in Tennessee, review the TABC’s license type list. To get your application started, use the TABC’s RLPS portal or Regulatory Licensing and Permitting System.

How to get a Texas liquor license 

To get a liquor license in Texas, use the TABC portal to select the type of license and obtain the necessary application and instructions. 

How to get a Utah liquor license 

To get a liquor license in Utah, review the Utah ABC website for types of licenses and application information.

Price: Vary, up to $10,000 (Depending on the type of license)

How to get a Vermont liquor license 

To get a liquor license in Vermont, use the VDLC’s portal to review license types and get instructions for submitting your application. 

How to get a Virginia liquor license 

To get a liquor license in Virginia, review the Virginia ABC website’s 3 types of licenses and application details. You’ll be required to display notice of your application on your premises for 10 days and in a local paper for 2 days. 

Price: $195 for on-premise retail license application 

How to get a Washington liquor license 

To get a liquor license in Washington, visit the WSLCB (Washington State Liquor and Cannabis Board) website and follow the instructions. Washington is one of only a handful of states where you can submit your application online. Contact the Department of Revenue to request more information at 1-800-451-7985 or BLS@dor.wa.gov.

Price: $75 filing fee 

How to get a West Virginia liquor license 

To get a liquor license in West Virginia, review the types of licenses then submit your application by mail with fingerprint cards, bond fee, and a copy of your health permit to the West Virginia Alcohol Beverage Control Administration. Contact WV’s ABC office at 304.356.5500 or abcc.licensing@wv.gov

Price: $100 – $2,650 (Depending on the type of license) + $1,000 or $5,000 bond

How to get a Wisconsin liquor license 

To get a liquor license in Wisconsin, contact your basic city clerk for information (not much more information is given than that). Wisconsin’s Department of Revenue oversees licensing, so see here for more information

How to get a Wyoming liquor license 

To get a liquor license in Wyoming, use their Eliquor portal (one of the only states with such a service). Once you’ve registered, you’ll be emailed information and login details where you can review all necessary information and take next steps. 

How to prepare your liquor license application

Now that you have the basic information you need for obtaining a liquor license in your state, it’s time to prepare to submit your license application.

Before applying, it’s important to prepare all possible documentation you may need. Even if you’re not 100% sure what your state’s board will request of you, getting everything you could need prepared in advance will simplify the process and remove possible headaches.

Here are documents you should consider getting in order before filing your liquor license application:

Basic information:

  •  Employer identification number

Licenses:

  • Business license
  • Music license (Only applicable if you’ll be playing copyrighted music)

Permits:

  • Zoning permit
  • Sales tax permit
  • Alcohol tax permit 
  • Food handler’s permit (Only applicable if you serve food)
  • Building permit 
  • Signage permit 
  • Health permit 

You never know what might be requested of you when submitting your application, so getting everything together in advance, even the above items that you may not end up needing, to make sure nothing holds up your application.

What to include with your liquor license application 

Now, let’s review the required documents.

With your application ready to be submitted, you’ll need to make sure to send it off with everything required by your state’s liquor authority. 

What these documents or other requirements are will differ based on the state, but the license application should outline what these documents are.

If you’re unsure, make sure to call your state’s liquor authority to ask before submitting your application.

Here are additional requirements to keep an eye out for in addition to your state application: 

  • Processing fee
  • Signed lease agreement
  • Estimated alcohol sales
  • DBA or CoGS (Your state may require a Certificate of Good Standing from your Secretary of State if you’re a corporation. Alternatively, a DBA will usually suffice if you’re a sole proprietor or partnership)

If you submit your liquor license application without all the necessary documents, your application will likely be placed on hold until the documents are received.

Considering it can take up to 6 months for an unobstructed application, it’s important to make sure you have everything readily available so you don’t end up adding unnecessary time to that already long wait. 

What is the approval process like? 

Once you’ve submitted your license application, all that’s left to do is wait.

The approval process of each state is different, however, this is an overarching process that most states follow, more or less:

  • Application is processed and delivered to relevant authorities for review
  • Check for available licenses
  • A background check is processed
  • Authorities review the premises
  • A public hearing is conducted in the case of complaints
  • When everything is resolved, the application is accepted and the license issued within 4-8 months depending on the state and type of license

Provided everything goes well with your application, you’ll have your alcohol license within the next several months and be ready to start offering drinks at your business. 

Obtaining a liquor license can be time consuming and difficult, but the rewards can also far outweigh the difficulty it takes to get it, making it more than worth the effort. 

Accounts Receivable Turnover: Formula, Definition, Examples

Accounts Receivable Turnover

Running a business requires a continuous assessment of operations followed up by strategic and informed modifications. That’s just a fancy way of saying you need to know every aspect of your business to avoid surprises and to make necessary changes. There are several tools you can use to do this, one of them being the accounts receivable turnover ration. Despite the relatively long name, it is actually very easy to calculate and will give you some very useful insights about your business.  When reviewing your Accounts receivable aging report to forecast your cash flow its important to understand the account receivable ratio and find ways to improve it.

What is the accounts receivable turnover to be exact?

Very simply, the accounts receivable turnover is a ratio used to compare how well your business issues credit to its customers and how effective it is at collecting those debts. It is nearly impossible to run a business without issuing a credit to your customers, you probably do the same with your suppliers, but the idea is to make sure you collect that debt. Otherwise, your cash flow will suffer and running the business will become difficult.

The accounts receivable turnover thus helps you determine if your business is good at collecting debts from customers and if not, where to make some changes. Not only does this help your business operations, but will also be a factor when you’re ever applying for a business loan. Therefore, it is very important to know how you can calculate the ratio on your own and understand your business even better. 

How do you calculate the accounts receivable turnover ratio?

To find the ratio, you should use the formula:

net credit sales / average accounts receivable

The net credit sales section represents all revenue generated by the business as a result of sales made on credit by its customers. For that reason, the number should not include any revenue generated from cash sales. Also exempt from the value should also be sales returns and allowances. Sales returns and allowances are issued to customers due to problems with shipment, services or transactions, which is why they are not included in the net credit sales figure. 

You should be easily able to calculate the net credit sales from the balance sheet or income statement using this formula:

sales on credit – sales returns – sales allowances

Once you have the above figure, move on to the second part – average accounts receivable. This is the amount of money your business is owed by its customers. Values for accounts receivables should also be available from the balance sheet. The accounts receivable turnover is usually calculated over an annual period, so you should also find the average accounts receivable over a period of a year. To do so, add the accounts receivable numbers from the balance sheet at the start and at the end of the year, then divide it by 2 to find the average. You can use this formula:

(beginning accounts receivable + ending accounts receivable) / 2

With these two figures in hand, simply divide the two to find the final result using the formula shown above.

How about an example?

Although the formula is quite simple, it is always easier to understand through a hypothetical example. Consider a small business that manufactures car parts that had quite a good year with $1,500,000 in total revenue. Of this, $250,000 was comprised of cash sales while there was $50,000 in returns and $20,000 in allowances. The net credit sales would then be:

$1,500,000 – $250,000 – $50,000 – $20,000 = $1,180,000

At the start of the year, accounts receivable indicated $180,000 while the end of year value showed $240,000. Thus, average accounts receivable would be:

($180,000 + $240,000) / 2 = $210,000

Consequently, the company’s accounts receivable turnover would be:

$1,180,000 / $210,000 = 5.6

What does this Account Receivable Turnover number mean?

In the above example, a 5.6 accounts receivable turnover meant that the company turned over accounts receivable in 65 days throughout the year on average. If the value was, say, 11.2, it would mean that accounts receivables were turned over every 33 days or so. From this, you can tell that a higher accounts receivable turnover ratio means that a company is turning over its debt quicker and is more effective at collecting a debt. 

Having a poor accounts receivable turnover ratio is not advisable because it generally signals that the business is not collecting what it is owed. If such a situation were to continue for several years, then the company would eventually have to write it off as bad debt. That is money lost from the business, and the cash flow will take a hit and operations would become more difficult. In the worst-case scenario, the business would have to shut down because there wouldn’t be enough money to pay for essential services and staff. 

Because every business wants to have a high accounts receivable turnover ratio, it may be important to look at some of the factors that could affect the value. 

Quality of customers

Companies are always keen to find out about their customers’ credit rating in order to establish whether they are going to pay their debt and how quickly they do so. When a company does not pay attention to this factor, it ends up issuing credit to bad customers who delay payment or completely foregoing payment. In the end, your company swallows the cost and suffers a loss, which is why it is so important to understand the quality of customers you lend to. 

Debt collection

Even with an elite clientele, you will still need to put some effort in collecting what you are owed. Big companies have entire debt collection departments to ensure they are paid for the credit they extend. But even smaller companies can devise more effective ways of collecting debt rather than sit and wait. 

Dependence on cash

Those businesses that depend mainly on cash will always have better accounts receivable turnover than credit businesses. This is something to consider once you’re done making your calculations.

 

Now that you know what it takes, you can make the necessary steps to improving your company’s accounts receivable turnover. On the other hand, you should not aim for the maximum accounts receivable turnover ratio either. To achieve such a feat would mean being very aggressive with your debt collection and turning down any potential customer with slightly lower credit rating. Of course, this is not what you want, and business is all about taking risks, but it’s just a matter of understanding what your risk appetite is. 

Why is the  accounts receivable turnover ratio important to know for your business?

With the accounts receivable turnover ratio in hand, you will know how well your business is at collecting debt. Knowing this should direct you on how you can improve your debt collection policies, filter less desirable clients in the future or both. In the end, it is all about improving the cash flow of your business because that is absolutely crucial to its success and even existence. For instance, you may decide to cut back on some expenses for some time until the ratio goes higher to ensure you have enough cash flow to run the business. 

Besides debt, unsecured business loan providers also look at the accounts receivables as collateral instead of profit. By improving the accounts receivable turnover ratio, your business will be eligible for higher loans and at more favorable terms. 

To make this formula even more effective for your business, always keep tracking it so that you can make consistent changes whenever necessary for the company’s financial health. 

The Landscaping Equipment Guide – Better to Buy, Rent or Lease?

landscaping equipment guide

In this Guide we Explore Landscaping Equipment Funding Types

 

As a business owner, you are going to have a lot of different decisions to make on a day-to-day basis – with each and every one of them significantly informing how your business grows and whether or not you are able to make as much money with this operation as you’d like to.

 

Some of these decisions as a landscaping company are pretty simple and straightforward. Updating your website, buying new business cards, or rolling out new advertising and marketing campaigns are pretty much no-brainer decisions all smart and savvy business owners make.

 

Others, like whether or not you should buy, rent, or lease landscaping equipment – the landscaping equipment that allows you to have a business in the first place – are nowhere near as easy to decide on.

 

To better help you navigate the sometimes rough and rocky roller coaster of picking between which pieces of equipment you buy, which you rent, and which you lease out we have put together this quick guide.

 

Let’s dig right in!

 

So whats the difference between Buying, Renting and Leasing Landscaping Equipment?

 

For starters, it’s important to understand that there is a world of difference between buying, renting, and leasing landscaping equipment – even if the end result (your landscapers actually using the equipment) is identical.

 

On top of that, your business, your financial goals, and how you see your business growing over the next five or 10 years will significantly inform these decisions as well. You’ll really want to combat these decisions from a multi-angle and holistic kind of approach rather than just going with a short-term solution.

 

Buying Equipment

 

Buying landscaping equipment is never going to be an inexpensive proposition when it comes to cash flow – particularly if you are pretty much a seasonal operation that can count on three months (at least) of downtime or slow time where your equipment is just sort of sitting around costing you money rather than making you money and having to put up all the funding upfront taking away from the working capital reserved for your business operation.

 

Deals can be found on last years models, preowned equipment, and the like to be sure. But for the most part you are going to be ponying up a premium to get your hands on total ownership of this equipment, and most of the time that just isn’t a financially smart move to make – at least in the early stages of building a landscaping company, anyway.

 

Renting Equipment

 

Oftentimes confused with landscaping equipment leasing, the truth of the matter is landscaping equipment rental agreements are quite a bit different than a leasing program from top to bottom.

 

Rentals are almost always short-term in nature (we are talking about just a couple of days or at most a week or two), very expensive compared to leasing and even purchasing equipment, but may be ideal in certain situations.

 

For example, maybe you have a very specific project that requires very specialized equipment that you do not use all that frequently. In these circumstances renting equipment becomes a no-brainer decision – giving you access to the professional landscaping tools and equipment you need to get the job done without having to spend a mountain of money buying or leasing equipment you might not use again for quite a while.

 

Bottom line, renting landscaping equipment is a smart and savvy decision on an “as needed” kind of basis. Buying and leasing are much better options for the “bread and butter” tools you’ll use day in and day out.

 

Leasing Equipment

 

With how expensive landscaping equipment for sale can be (especially newer equipment) the overwhelming majority of landscaping operations choose to lease equipment before they even think about buying something.

 

Sure, you can find great deals on used landscaping equipment that might help cut down on the overall cost of ownership upfront. But even then you might be ponying up $50,000 or more for a piece of equipment that you could have leased for a few hundred or a few thousand dollars each month – letting you use that tool to make you money and essentially pay itself off along the way.

 

Another huge advantage in leasing commercial landscaping tools is that you’ll always have access to the latest and greatest tools and technology in the industry. Keeping a short lease allows you to consistently upgrade to the most efficient and professional landscaping equipment.

 

Landscaping companies that purchase their commercial lawn equipment out right may have brand-new toys for a couple of years. But as they continue to pay off those expensive loans their equipment gets older and older – and by the time they own their tools out right those machines are legacy tools that have been leapfrogged by more modern solutions.

 

With leasing, that’s never a problem. Your lease expires, the equipment is returned, and you lease new models with new advances, new technology, and ways of helping you make money more efficiently.

 

At the end of the day, the right business lending organization can help set you up with the kinds of financing packages you need to secure top-tier professional landscaping tools and equipment leases without having to deal with any headache or hassle whatsoever.

 

For most operations, this is the way to go!

6 Proven Funding Methods for Entrepreneurs Looking to Grow Their Business

 

6 Funding Methods to Think About When Raising Capital

Everyone loves a feel-good story. It’s hard not to smile when you see a video of a Make-a-Wish helping out a child, a story of an athlete who came from nothing, or one of those rags to riches stories like in The Pursuit of Happyness.

 

Scour the internet for more than 30 seconds and you’re bound to find plenty of stories about how people down in the dumps turned their lives around with a business idea. Or how a young entrepreneur took their hobby and made it into a million dollar business. You can just go ahead and skip the “Business Execs Hate Him! Click Here to Read About How one Man Become the World’s Most Successful Businessman Ever!” clickbait stories.

 

What you may find lacking in those stories is the amount of hours and hard work being mentioned. It usually comes at a blip in the story, like “Joe Smith worked 17 hour days” or “Katy Lee slept on her friend’s couch for one month”. Many may not realize the amount of work and sacrifice that goes into creating a successful business.

 

If you’re an entrepreneur, you are definitely aware of the amount of effort your job needs. You’ve sacrificed plenty to get here and there’s plenty more work to be done in order to take it up a notch.

 

One of the biggest hurdles for all entrepreneurs is funding. You have this great idea but you need cash. How can you expand your business into a new region? How can you market your product on a certain budget?

 

Below, we’re going to run through some proven funding methods that entrepreneurs can use to help grow their business and take it to the next level.

 

Alternative Lending

Our first item on the list is a bit of a broader term. It’s to sum up options that you would find outside a bank. It’s also a pretty new form of funding, becoming more and more common in the last decade. This is a way to  get fast business loans without the hassles of traditional funding

 

Alternative lending is primarily for small or medium sized businesses that failed to qualify for a bank loan. Many alternative lenders can get money to startups in a number of days and in some cases, hours.

 

You can either go in person or check out a variety of online lenders. Online lenders tend to be the fastest among all, checking all of your documents and giving you an answer within 24 hours. There are also more flexible and have various options.

 

They don’t come without their flaws, however, as you’re going to have a tough time securing a large amount. You’ll also have to pay back the amount you borrowed more frequently, with some even having daily repayment schedules.

 

 

Venture Capitalists

We’ve all heard the term, but may not know the exact definition. Venture capitalists are when an outside groups assumes part ownership in exchange for capital.

 

Many often turn to venture capitalists when they don’t have any physical collateral. Those who might be in this situation are those involved with e-commerce.

Photo source: https://beeketing.com/blog/future-ecommerce-2019/

 

Many e-commerce businesses operate as dropships, meaning they don’t ever actually handle the products being delivered but serve as a middle man between the producer and consumer. It’s likely that many small dropship e-commerce companies operate with nothing more than a handful of people on computers.

 

Venture capitalists will help inject money into the business and others will help provide other resources as well to stimulate growth. Those resources are often more helpful than the money.

 

Of course, many entrepreneurs may bristle at the idea of giving up even part ownership. It can be hard to let something go that you’ve worked so hard for.

 

 

Angel Investors

They used to be in the outfield, but now they’re helping you fund your business. Angel investors are often compared to venture capitalists, but angel investors tend to be a single investor instead of a company or group of people.

 

Instead of working with a company, you’re likely to be working with one single individual. Consider it to be a more personal direction than with venture capitalist. Once again, it might be hard to give up part of your company in exchange for some capital. Finding an angel investor is also going to be much more difficult than finding a venture capital firm.

 

 

Bootstrapping

Bootstrapping is when the business decides to fund itself. Chances are, you’re probably already a bootstrapper and you didn’t even realize it. This could be by gathering personal funds or injecting all your money made back into the business.

 

Bootstrapping is the “easiest” form of funding your business, because you’re not off looking for investors, venture capitalists, crowdfunding, or loans. No heading to the bank, endless meetings, or filling out tons of paperwork. The business is funding itself. It can be a tough line to walk, as you will still have to try to turn a profit while you’re putting money back into it.

 

The one downside to bootstrapping is that it’s quite slow. Even with a booming business like e-commerce, you’re not going to be making money hand over fist immediately. Many entrepreneurs use bootstrapping while searching for other areas of funding. Small tricks like finding a keyword rich domain and attracting forum traffic can make a huge impact early on.

 

Partner

Many entrepreneurs end up taking on a partner or partners when growing their business. Partners can help contribute capital, provide new contacts, take part of the workload, and provide an instant support system. It’s always good to have a foxhole buddy.

 

Finding a partner may be easy, but choosing the right partner can be tough. You’re going to be spending a lot of time together. Find someone that will not only be a good partner, but someone whom you enjoy being around.

 

Some entrepreneurs turn to other companies for partnerships, setting up a symbiotic relationship for their products and services.

 

Partners can provide a number of issues however, as there is always a chance for conflict, shared profits, and shared control. Remember to do your due diligence when looking for a partner. Your close friend might seem like a logical choice, but it’s like finding someone to live with.

 

Even though you may be best friends, they might be the messiest, loudest person on the face of the earth and drive you crazy.

 

The Personal Approach

Despite all of these official ways to go about funding your business, it turns out one of the more popular options is borrowing money from a friend or family member. Friends and family might also give you the loan interest free or simply ask for a small share of equity in the business. Every family is different, so how you approach this one is up to you.

 

If you have a niche product and solid following, you could turn to crowdfunding. There are plenty of stories of successful products that were birthed via crowdfunding. This is a tricky road to go down and is more likely to work with tangible products. But, it’s a 21st century trend that has exploded over the last decade.