Almost all businesses in Vermont are small businesses, and there are about 80,000 of them. If you’re planning to start a small business, you’re in good company. Before you hang out your shingle, however, there are a few steps you must take. You have to register your business with the Secretary of State. You’ll probably need a sales tax license. Furthermore, there may be federal, state, and local licenses and permits you’ll be required to obtain. This is a guide to learning which licenses and permits you need along with the details about how to procure them.
Federal, state, and local governments issue licenses and permits to ensure that businesses are abiding by all the relevant laws. Another reason for these credentials is to protect public safety. Licenses are required for businesses that have specific professional expertise, for example, health care professionals, attorneys, and architects. Also, permits are required for business such as food preparation, where adhering to safe and sanitary practices is vital.
Some people us the terms “license” and “permit” interchangeably. However, they aren’t identical. Licenses authorize businesses to conduct specific types of activities in designated locations. For example, professional licenses ensure that jobs requiring specific skills or training – for example, plumbing, engineering, and the practice of law – are being done only by people with the proper qualifications. You have to apply for licenses and generally pay a fee. You normally have to produce credentials such as diplomas or professional designations.
Permits authorize businesses to perform certain activities. An example is a food preparation facility such as a restaurant or food truck. Permits may require initial inspections and ongoing ones.
The state of Vermont doesn’t require a general business license. However, depending on your line of business and where you do business, you will possibly need licenses and permits from state, local, and federal authorities.
If you sell taxable goods or services in Vermont, you must obtain a sales tax license from the state Department of Taxes. Another agency, the Office of Professional Regulation (OPR), controls licenses for most Vermont professionals, including everything from accountants to nurses to property inspectors. Other state agencies issue a few professional licenses, including those for plumbers, electricians, educators, MD’s, and attorneys.
Cities, towns, and counties can have their own regulations. Some Vermont cities require business licenses as well as licenses and permits for businesses such as hotels, restaurants, and taxis. Although the state does not have a general business license, some of the cities may require one.
There are some business activities that are federally regulated. Enterprises involved in these will need federal licenses or permits from regulatory agencies. These credentials are required in some aspects of agriculture, alcohol, aviation, firearms and explosives, fish and wildlife, maritime transportation, mining, nuclear power, radio and TV broadcasting, and transportation. Each federal agency that requires licenses or permits has its own requirements, fees, and application process.
For starters, if you sell taxable goods or services, you must have a Vermont sales tax license. In addition, certain business activities and professions require a professional license. The Office of Professional Regulation maintains a list of these occupations, those regulated both by the OPR and other state agencies. Within this list, there is a link for each profession with additional information.
To know what local licenses you’ll need, you’ll have to contact each local government where you plan to do business. Some cities, such as Montpelier and Burlington, have information available on city websites. For others, you will have to call the city, town, or county office.
For federal permits and licenses, there’s an Apply for Licenses and Permits page maintained by the Small Business Administration. It contains a link to the appropriate agency for each business activity that requires licensing. These individual agencies maintain the information about licenses and permits you may need and how to apply for them.
If you need a Vermont sales tax license, apply for one with the Department of Taxation. Information about Vermont professional licenses is under the Vermont Secretary of State – Office of Professional Regulation. On this page, there’s an Apply/Renew button that navigates to the OPR’s Online Services Platform. You must create an account, but, once you do so, you can apply for a license, renew a license, or check the status of an application.
Another route to applying is through the OPR’s Professions page:
The link for each profession takes you to a page where you can learn more, access the forms, and apply for or renew the license:
For each city, town, and county where you expect to do business, you’ll have to apply for local licenses and permits. The process is different for each locality. If there is no local permitting website, you’ll have to contact the city, town, or county itself.
For federal licenses and permits, look at the Apply for Licenses and Permits web page. Click through to the agency site for the specific process for that agency. For example, if you need an agricultural license, the Department of Agriculture maintains an Animal and Plant Health Inspection Service (APHIS) eFile page where you can apply.
The OPR no longer accepts paper applications. The good news is that application turnaround is quick, generally requiring only about five business days. The sites where you submit your application also support checking the status of an application.
Vermont license renewal requirements can be found at the OPR Initial Applications Renewal Fees & Dates web page. Most licenses need to be renewed every other year. Renewal is not on the anniversary of the initial approval but rather on a specified calendar date, different for each license. Some renew in odd-numbered years and others in even. If you have had the license for more than 90 days when the renewal date hits, you must renew.
You can apply for renewal up to six weeks before the renewal date. A reminder will be sent to the email address on file with your license.
The State of Vermont does a good job of centralizing its licensing information and its application and renewal process. It will not be difficult to learn about and apply for the state licenses you need. For local licenses and permits, you will have to check the website or contact the municipal office for every locale where you plan to operate. The information you need for federal licenses is centralized on an SBA web page. With a methodical search, you will be able to obtain everything you need in the way of licensing.
If you’re doing business in Vermont without the required licenses and permits, the life of your business might be a short one. You could be temporarily or even permanently shut down. Furthermore, conducting business without the right licenses and permits is a crime, and it’s possible that you personally could face criminal charges.
Sole proprietors do not have to register with the Secretary of State. However, you still must obtain all the required licenses and permits for your line of business and the locality where you do business. Professional licenses are required to provide professional services, regardless of your business structure.
While there isn’t a general business license, Vermont professional licenses must be renewed with the state every other year, according to the OCR renewal schedule. The renewal applications are found at the same sites as the original applications.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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