8+ Licenses and Permits You May Need to Open a Arcade

The nostalgia of arcade games has been rekindled in recent years, with many entrepreneurs looking to bring back the joy of classic gaming experiences. Opening an arcade is not only a great way to tap into this growing market, but also an opportunity to create a unique and engaging space for people of all ages to enjoy. However, just like any other business venture, there are specific licenses and permits that must be obtained to ensure your arcade is operating legally and safely. Navigating the complex world of regulations and requirements can be daunting, but fear not! In this article, we will break down the top eight licenses and permits you may need to open your very own arcade, helping you to avoid any potential pitfalls and get your gaming paradise up and running in no time. So, grab your quarters and let's dive into the world of arcade licensing!

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Written by:
Newfoundr
Updated on:
April 17, 2023
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Table of Contents:

Our List of 8+ Licenses and Permits You May Need to Open a Arcade:

Below is a list of possible Arcade licenses and permits needed. Please note it will vary state by state, so please do extensive research before starting.

1. Business License.

A Business License is a legal document that allows an individual or company to operate a business in a specific location. It is required by most local governments and is necessary to ensure that businesses comply with regulations and safety standards.To start an Arcade, you may need a Business License to legally operate the business. The license will ensure that the Arcade meets all safety and building codes, as well as any other regulations required by the local government. It may also be required for tax purposes, as well as to obtain insurance coverage. In short, a Business License is essential to legally operate an Arcade and protect the business owner from legal and financial liabilities.

Check if your state requires a Business License.

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2. Sales Tax Permit.

A Sales Tax Permit, also known as a Sales and Use Tax Permit, is a document issued by the state government that allows a business to collect and remit sales tax on taxable goods and services sold to customers. If you are starting an arcade, you may need a Sales Tax Permit if your state requires businesses to collect sales tax on arcade games and other taxable items. Failure to obtain a Sales Tax Permit can result in penalties and fines. Additionally, having a Sales Tax Permit allows you to purchase goods from suppliers without paying sales tax, which can save you money in the long run.

Check if your state requires a Sales Tax Permit.

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3. Building Permit.

A Building Permit is an official document issued by a local government agency that allows a property owner or contractor to proceed with a construction project. This permit ensures that the construction project meets all safety and zoning requirements set by the local government.To start an arcade, a Building Permit may be required if any construction or renovation work needs to be done on the building. For example, if the arcade needs to add electrical wiring, install new flooring, or make any other structural changes, a Building Permit would be necessary to ensure that the work is done safely and according to local regulations.

Check if your state requires a Building Permit.

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4. Sign Permit.

A Sign Permit is a legal document that allows a business owner to install and display signs on their property. It is issued by the local government or municipality and ensures that the signs meet the safety and aesthetic requirements of the community.You may need a Sign Permit to start an Arcade because it is likely that you will want to install signs that advertise your business and attract customers. These signs may include a storefront sign, promotional banners, and directional signs. Without a Sign Permit, you may be subject to fines or legal action for violating local sign regulations. Additionally, having a properly permitted sign can help establish your business as a legitimate and professional operation.

Check if your state requires a Sign Permit.

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5. Fire Department Permit.

A Fire Department Permit is a document issued by the local fire department that certifies that a building or business meets all fire safety regulations and is safe for occupancy. It is necessary to obtain this permit to ensure that the building in which an arcade is located is safe for customers and employees.Arcades typically have a large number of electrical devices, such as video games and other entertainment equipment, which can pose a fire hazard if not properly installed and maintained. Additionally, arcades may have a large number of people in a relatively small space, which can increase the risk of fire and other safety hazards.By obtaining a Fire Department Permit, arcade owners can ensure that their business is in compliance with all fire safety regulations and that they have taken all necessary precautions to protect their customers and employees. This can help to prevent accidents and injuries, as well as protect the business from liability in the event of a fire or other emergency.

Check if your state requires a Fire Department Permit.

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6. Health Department Permit.

A Health Department Permit is a permit issued by the local health department to ensure that a business meets health and safety standards. In the case of an arcade, a Health Department Permit may be required to ensure that the facility is clean and safe for customers, with proper sanitation and ventilation, and that food and drinks sold on the premises are prepared and stored in a safe manner. This permit is necessary to ensure that the arcade meets health and safety regulations and to protect the health of customers and employees.

Check if your state requires a Health Department Permit.

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7. Zoning Permit.

A Zoning Permit is a legal document that grants permission to use a property for a specific purpose, such as operating an arcade. Zoning laws regulate how land can be used and developed in a particular area, and a zoning permit ensures that the proposed use is consistent with the local zoning regulations. You might need a zoning permit to start an arcade because the property you plan to use may be zoned for a different type of business or residential use. You may also need to comply with certain zoning requirements, such as parking, signage, or noise restrictions, before you can open your arcade. Obtaining a zoning permit can ensure that your business is operating legally and can help you avoid potential fines or legal issues.

Check if your state requires a Zoning Permit.

8. Amusement Arcade License.

An Amusement Arcade License is a permit that allows an individual or business to operate an amusement arcade. This license is necessary because amusement arcades are considered a form of gambling, and therefore, they are subject to regulation by the government. To obtain an Amusement Arcade License, the applicant must meet certain requirements, such as providing proof of financial stability, demonstrating knowledge of the industry, and ensuring that the arcade complies with all relevant laws and regulations. Without this license, it is illegal to operate an amusement arcade, and the business owner may face fines or other penalties.

Check if your state requires a Amusement Arcade License.

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Frequently asked questions

Everything you need to know about the business licenses.

What is the best business formation license for a Arcade?

The best business formation license for an arcade would likely be a Limited Liability Company (LLC). An LLC provides limited liability protection, which separates your personal assets from the business assets, and offers flexibility in management and taxation. Additionally, you may need to obtain local permits and licenses specific to operating an arcade, such as a business license, zoning approval, and amusement device permits. It is important to consult with a legal professional or business consultant to determine the best formation for your specific situation and location.

Is it required to have a general business license for a Arcade?

Requirements for business licenses vary depending on the location and jurisdiction. In many cases, an arcade would need a general business license, as well as additional permits or licenses specific to operating an arcade or entertainment venue. It's essential to check with your local city or county government office to determine the specific requirements for your area.
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