However, a few types of businesses do require federal licensing, including meat processors, radio and TV stations, and investment advisory services. The Federal Trade Commission can tell you if your business requires a federal license. First, any homebased business selling taxable goods and services must pay sales taxes on what it sells. The definition of a taxable service varies from state to state. Depending on individual state rulings, both the parts and labor portions of your bill may be taxable.
Sales taxes vary by state and are imposed at the retail level.
It s important to know the rules in the states and localities where you operate your business because if you re a retailer, you must collect state sales tax on each sale you make. Before you open your doors, be sure to register to collect sales tax by applying for each separate place of business you have in the state. A license or permit is important because in some states it s a criminal offense to undertake sales without one. If you plan to sell food, either directly to customers as in a restaurant or as a wholesaler to other retailers, you ll need a county health department permit. The health department will want to inspect your facilities before issuing the permit.