In the thrill and excitement of starting your own business, it might be easy to overlook some of the basic requirements such as permits and licenses. After all, what entrepreneur doesn't want to get on with the fun part of making money and watching the business grow? But neglecting this important part of business can be devastating and may result in fines or worse.

Which licenses and permit you need for your business depends upon the type of business and where it is located. Each state, city, county and local government has its own requirements when it comes to permits and licenses. If your business operates in more than one place, you will need to check with each to make sure you are in compliance. While the fees for most permits and licenses are relatively inexpensive, it is still a good idea to include these in your start-up and annual budget.

Here are the most common types of state licenses:

• Licenses regulating the sale of alcohol, tobacco, firearms, lottery tickets, gasoline and diesel.
• Occupational licenses such as for auto mechanics, electricians, plumbers, building contractors, realtors, health professionals, cosmetologists, barbers, tax consultants, and insurance agents

Locally, you may be required to obtain the following:

Business License

Nearly every locality (i.e. city or county) requires some kind of business operating license. Make sure you check with the appropriate local government office to find out exactly what is required. An important consideration for this type of licensing has to do with zoning regulations. For example, you may have big plans for your dog kennel only to discover that city zoning regulations limit the size of your business or maybe even prevent it altogether. It just makes good sense to verify that your type of business fits with the zoning and planning commission's regulations.

Fire Department Permit

Unless your business involves flammable materials, you may think that this one is irrelevant to your type of business, but in many places, any business that could potentially attract large crowds, such as a restaurant, may require this kind of permit.

Health Department Permit

Any business preparing and serving food will be required to be licensed and regularly inspected.

Occupancy Permit

Some jurisdictions regulate number of occupants that a business can accommodate at any one time. This is especially true for restaurants, bars and the like.

Every aspect of your business requires careful planning in order for it to succeed, so make sure you don't overlook planning for licenses and permits. A little time well spent in the beginning can save much grief in the end. In most cases, it only takes a little while to apply for the required licenses and permits.