Starting a marketing consulting business takes more than knowing the four P’s of marketing.

The question, “what business license do I need to start my marketing consulting business” is a common one, but in reality, a business will often need multiple licenses, permits, and registrations from federal, state, and local agencies in order to legally operate. in order to legally operate.

Related: Guide to starting a marketing consulting business

What Licenses Do You Need to Start a Marketing Consulting Business?

Truth in Advertising Laws

While not a license, it’s vitally important that as a marketing consultant, you are familiar with the truth in advertising laws. Through truth in advertising laws, the Federal Trade Commission (FTC) holds advertisers accountable for the ads they create and ensure they are not deceptive.  In particular, the:

• Advertising must be truthful and non-deceptive
• Advertisers must have evidence to back up their claims; and
• Advertisements cannot be unfair.

Learn more about truth in advertising laws

Most states and towns/cities don’t have a specific license for a marketing consulting business, however, they all have general licensing requirements for starting a business.  A few of the common licenses and permits a marketing consultant may need include:

General Business License or Permit

Depending on where the business is located, a general business license or permit may be required. A few states require one, however, they are more commonly at the city level.

Learn more: Business license requirements by state

Federal Employer Identification Number

The Federal Employer Identification Number (also referred to as a FEIN, Employer Identification Number, EIN, or Federal Tax ID Number), is a unique nine-digit number that identifies a business with the Internal Revenue Service (IRS).

Any business with employees or those that form as a partnership, Corporation, and in many cases an LLC, the business will need to get an EIN.

Learn: How to get an EIN 

Sales Tax Permit or Number

In order to sell products and/or offer certain services, a state sales tax permit (or tax ID number) may be needed.  This permit creates an account number with the state’s Department of Revenue or a similarly named state taxing agency.

Additionally, hiring employees will also likely require a state tax number.

Learn: How to get a sales tax permit

Resale Certificate

When buying products such as promotional items to sell to customers, the business can purchase these items tax-free. A resale certificate allows a business to purchase inventory and instead of paying the sales tax to their vendor, they charge the sales tax to the end-user of the product.

A resale certificate only allows a business to not pay sales tax for items being resold and sales tax will still need to be paid for supplies or equipment.

Learn: How to get a resale certificate

Certificate of Occupancy

In most communities, a business will need to secure a Certificate of Occupancy (CO) before opening.  This certificate is typically obtained from the city, but sometimes from the county, and allows a business to occupy and operate from a building provided the building is in compliance with zoning, codes, and any other local requirements.

A Certificate of Occupancy (also referred to as a home occupation permit) is also sometimes required for a home-based business.

Before starting your marketing agency, be sure to check with the local zoning department to ensure the business can legally operate out of the chosen location.

Business Name Registration or DBA

While not necessarily a business license, it’s worth noting that in order to use a name for a business, many states require the registration of that name. Making matters more complicated, the process of name registration is different by state and the type of entity the business operates as.

For instance, sole proprietorships and partnerships generally need to register a business name (also referred to as a Doing Business As, DBA, fictitious name, or assumed name).

Learn: How to register a DBA

Related: How to trademark a business name

Corporations and LLCs register are a little easier in that their name is registered when forming the entity.

 

Related: What is the difference between a sole proprietorship, partnership, Corporation, or Limited Liability Company (LLC)?

 

Certifications

In addition to licensing, marketing consultants can obtain certification to gain additional skills. A few marketing certifications include:

• Professional Certified Marketer (PCM) from the American Marketing Association (AMA).
• Professional Researcher Certification from the Insights Association
• Foundation for the Advancement of Marketing Excellence in Entrepreneurs (FAMEE)
• Certified Product Marketing Manager (CPMM) from the Business Marketing Institute
• Certified Financial Marketing Professional (CFMP) from the American Bankers’ Association

The post What Licenses Does a Marketing Consulting Business Need? appeared first on StartingYourBusiness.com.