7+ Licenses and Permits You May Need to Open a Craft Store

Are you ready to turn your passion for crafting into a thriving business? Opening a craft store can be an exciting and rewarding venture, but it's essential to ensure you have all the necessary licenses and permits in place before you open your doors. Navigating the world of business regulations can be overwhelming, especially for first-time entrepreneurs. That's why we've compiled this comprehensive guide to the 7+ licenses and permits you may need to open a craft store. By following these guidelines, you'll be well on your way to creating a legally compliant and successful craft store, allowing you to focus on what truly matters - inspiring creativity and fostering a community of craft enthusiasts. Don't let the fear of red tape hold you back; let's dive in and explore the requirements for opening your dream craft store!

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

Our List of 7+ Licenses and Permits You May Need to Open a Craft Store:

Below is a list of possible Craft Store 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 permit issued by a government agency that allows an individual or company to legally operate a business. It is a requirement in many jurisdictions for businesses to obtain a license before they can start operating. If you are starting a Craft Store, you may need a Business License to legally operate your business. This license will ensure that you are complying with local laws and regulations, and it will also allow you to collect sales tax from your customers. Additionally, having a Business License can help you establish credibility with potential customers, suppliers, and partners.

Check if your state requires a Business License.

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2. Sales Tax Permit.

A Sales Tax Permit is a document that allows a business to collect and remit sales tax to the state government. It is required for any business that sells goods or services subject to sales tax. If you are starting a Craft Store, you will likely need a Sales Tax Permit because you will be selling tangible goods that are subject to sales tax. Without a Sales Tax Permit, you may be subject to fines and penalties for failing to collect and remit sales tax. Additionally, having a Sales Tax Permit can help you establish credibility with suppliers and customers, as it shows that you are a legitimate business operating in compliance with state laws.

Check if your state requires a Sales Tax Permit.

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3. Employer Identification Number (EIN).

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax purposes. It is also known as a Federal Tax Identification Number (TIN).You might need an EIN to start a Craft Store for several reasons:1. To open a business bank account: Most banks require an EIN to open a business bank account.2. To file taxes: You need an EIN to file your business taxes with the IRS.3. To hire employees: If you plan to hire employees for your Craft Store, you need an EIN to report wages and taxes to the IRS.4. To apply for business licenses and permits: Some states and local governments require an EIN to apply for business licenses and permits.In summary, an EIN is essential for starting and operating a Craft Store as it is required for tax purposes, hiring employees, opening a bank account, and obtaining business licenses and permits.

Check if your state requires a Employer Identification Number (EIN).

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4. Sign Permit.

A Sign Permit is a document that allows you to install and display signs on your property. The purpose of a Sign Permit is to ensure that signs are installed in a safe and appropriate manner, and that they comply with local zoning and building codes.If you are starting a Craft Store, you may need a Sign Permit to install signs that advertise your business. This could include a sign above your storefront, banners, or other types of signage. The specific requirements for obtaining a Sign Permit will vary depending on your location and the type of signs you want to install. You should contact your local zoning or building department to find out what the requirements are for obtaining a Sign Permit in your area.

Check if your state requires a Sign Permit.

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5. Building Permit.

A building permit is an official document issued by a government agency that allows the construction, renovation, or alteration of a building or structure. It ensures that the building or structure complies with the relevant building codes, safety standards, and zoning regulations.If you are starting a craft store, you may need a building permit to make any changes to the building such as adding or removing walls, installing new plumbing or electrical systems, or making any other structural changes. The permit ensures that your store is safe for customers and employees and meets the requirements of the local government. Without a building permit, you may face fines or legal issues, and your store may not be able to open or operate legally.

Check if your state requires a Building Permit.

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6. Home Occupation Permit.

A Home Occupation Permit is a legal document that allows a person to conduct a business or commercial activity from their home. It is required by many local governments to ensure that the business does not negatively impact the surrounding community.If you are planning to start a craft store from your home, you may need a Home Occupation Permit to ensure that your business complies with local zoning laws and regulations. This permit may also be required to obtain a business license or to register your business with the state. Additionally, having a Home Occupation Permit can provide you with legal protection in case of any disputes or complaints from neighbors or other community members.

Check if your state requires a Home Occupation Permit.

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7. Zoning Permit.

A Zoning Permit is a legal document issued by a local government agency that allows a property owner to use their land or building for a specific purpose, such as a business. It ensures that the proposed use of the property complies with local zoning laws and regulations.You might need a Zoning Permit to start a Craft Store because different types of businesses are often subject to different zoning requirements, such as the type of building, the size of the property, the number of parking spaces, and the type of goods or services offered. A Craft Store may be subject to zoning regulations related to retail businesses or arts and crafts businesses, and a Zoning Permit may be required to ensure that the property is suitable for this type of use. Without a Zoning Permit, you may not be able to legally operate your Craft Store, which could result in fines or legal action.

Check if your state requires a Zoning Permit.

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This post is for information only. You are responsible for reviewing and using this information appropriately. This content doesn’t contain and isn’t meant to provide legal, tax, or business advice. Requirements are updated frequently and you should make sure to do your own research and reach out to professional legal, tax and business advisers, as needed. We’re reader-supported. When you buy through links on our site, we may earn an affiliate commission.
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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 Craft Store?

The best business formation license for a Craft Store would likely be a Limited Liability Company (LLC). An LLC provides personal liability protection for the business owner(s), has a flexible management structure, and has potential tax benefits. However, it's essential to research and consult with a legal or business professional to determine the most suitable formation for your specific situation and location.

Is it required to have a general business license for a Craft Store?

Requirements for a business license vary depending on the location and jurisdiction of your craft store. It is essential to check with your local city, county, or state government offices to determine the specific licensing requirements for your area. In most cases, a general business license is required to operate a retail business, including a craft store.
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We're newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.