Business Licenses and Permits: What Your Small Business Needs

Starting and running a small business means navigating a complex web of licenses and permits. The specific requirements depend on your industry, location, and business structure—and they span federal, provincial, and local levels. Missing even one can lead to fines, delays, or forced closure.

Why Business Licenses Matter

Operating without the required licenses puts your business at serious legal and financial risk. Fines for non-compliance can be steep, and in some cases, authorities can shut your business down entirely. Beyond penalties, having the proper licenses builds credibility with customers, partners, and financial institutions.

Types of Licenses and Permits

The licenses your business needs fall into several categories, depending on what you do and where you do it:

Common License Types

Three Levels of Government Requirements

Federal Requirements

If your business engages in activities regulated by a federal agency, you will likely need federal licenses or permits. A Federal Business Number (BN) is almost always required for tax purposes. Industries commonly regulated at the federal level include agriculture, manufacturing of alcoholic beverages, firearms and ammunition, mining, radio and TV broadcasting, commercial fisheries, transportation, and aviation.

Provincial Requirements

Provincial licenses fall into two categories: general business licenses and professional licenses specific to individuals. You may need to determine which provincial laws apply to your business, whether licenses from other provinces are valid in yours, whether your employees need specific licenses, and the associated fees and application methods.

Local Requirements

Many cities and towns have local ordinances requiring additional permits and licenses. These can include one-time permits for special events, sales tax licenses, general business permits, health permits for restaurants, building and zoning permits, and licenses for tobacco, lottery, or alcohol sales.

DBA (Doing Business As) Registration

If you operate under a name different from your legal name, you will need to file a DBA registration. This applies to sole proprietors and formal entities alike. A lawyer can help determine whether you need a DBA or federal trademark, where to file, conduct name searches to avoid conflicts, and complete the required government forms.

How a Small Business Legal Service Plan Can Help

With a Small Business Legal Service Plan, a lawyer can help identify exactly which federal, provincial, and local licenses your business needs. They can guide you through filling out and submitting applications correctly, review your documents and applications at no additional cost, and help resolve issues like rejected applications, expired licenses, or fines.