Purchasing insurance can feel like a confusing and expensive hassle, but obtaining insurance for your business protects your company assets in the event of an accident, certain natural disasters and other operational interruptions. Without insurance, you will have to pay any claims or damages out of pocket, which can easily devastate a small business.
Some types of coverage are essential for all businesses, whether you’re an entrepreneur with a new small business or the CEO of a local company. If you invest in finding the right policies now, you’ll save yourself from potential legal headaches and unforeseen costs down the road.
Types of Business Insurance
There are numerous types of business insurance, each one designed to protect against a particular set of risks. The insurance your business requires will depend on its type and size.
Liability insurance covers defense for injuries, accidents, and negligence. Contrary to what’s commonly believed, home-based companies need liability insurance since homeowners’ policies do not protect against business liability risks.
State Regulations
State business licenses mainly apply to businesses that sell products or services regulated under that state’s laws. These products and services will differ by state, but most business owners should expect to be required to obtain a business license to legally operate their businesses. Standard state licenses apply to businesses such as tattoo parlors, hair salons, restaurants, construction companies, accounting firms, retail sales, medical and health providers, real estate agents, among others. You can explore further details by state at Business.gov.
Local Regulations
Local business licenses are another prerequisite, as businesses are usually registered at the local level before they are registered at the state level. Local business licenses and permits are usually not difficult to obtain and they tend to be low in cost, but they are required for a businesses to operate legally.
South Carolina Business License Requirements
Some business types will be required to obtain a state level South Carolina business license. You can find information about general business licenses online at South Carolinas Business Portal. Locally, most cities in South Carolina require a local business license as well. Get in touch with the Business License branch at your local City Hall to learn about the requirements and fees.
Failing to secure a business license may result in fines and/or penalties that you, the owner, could be held personally liable. Also, with no business license in line, you run the risk of your company’s reputation being damaged and potentially having your business permanently shut down.
Bottom line
Nearly all businesses will need one or more licenses to launch and operate their companies legally, whether that be at the local, state, or federal level. You’ll want to secure all necessary licenses before you actually start operating your business, and you’ll want to display your licenses properly, make copies for your records, and keep track of any renewal dates to ensure you’re always operating legally. Though this will probably not be your favorite part of being a new business owner, once you’ve completed this critical first step, you can move on to the other, more exciting components of launching and growing a successful small business.
For more help, you can always consult the Small Business Administration (SBA) or your local government agency for assistance with the licenses or permits required to start a business.
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