Permits vs Licenses: What’s the Difference?
Permits and licenses are two terms that are commonly used throughout the world, and which eventually refer to asking for permission. It is essential to issue licenses and permits in many countries in order to keep the legal rules and regulations in place.
Through the use of these two terms, invasion activity can be easily monitored.
The difference between permit and license is that permits are the official or legal document that is issued to administer the safety issues. Licenses, on the other hand, represent permission to do or use something, and they are given more generally than permits.
Difference between Permit and License
Here is a table that highlights the major differences between permits and licenses
| Factors | License | Permits |
|---|---|---|
| Validity Period | The majority of licenses are permanent. | Permits are usually temporary or limited to a specific period of time |
| Restrictions | Licenses have few or limited restrictions. | Permits have comparatively more restrictions than licenses. |
| Inspections | Licenses do not require regular inspections. | A permit is issued for safety measures, and regular inspections are required. Licenses do not require regular inspections. |
| Appearance | The appearance of a license is permanent, usually in a card format. | Similar to a sticker, but less permanent. |
What is a Permit?
Permits are official documents that allow an individual to engage in a particular activity. It is also a legal document that one must have before starting a business.
Before a person attains a certain age, a driving permit may be granted, and a license is issued after the age is reached. In the same way, someone who is licensed to carry on pest control business must have a permit to store chemicals.
The transport industry may also require permits to transport certain goods beyond certain points.
What is a License?
It is a legally binding contract that allows someone or something to do, own, perform an action or use a service provided they agree to the terms and conditions.
The most frequent types of licenses are driving licenses, software licenses, and business licenses. All of these have terms and conditions attached to them, which must be met before the license can be activated.
Public licenses are granted by the relevant authorities. As a result, they offer insight into the regulation of various activities to the government and relevant authorities, as well as helping the public engage in regulated activities.
Licenses are primarily used to regulate activities and to ensure that activities are not denied to the public.
Related Article: What is Business License and How to Get One
Main Differences Between Permits and Licenses
- Inspection periods: The Permit is provided to administer the welfare of the public by various authorities and as a result, regular verification and inspection are being done by relevant departments. The license, on the other hand, does not require regular inspections; they can be done when the license is issued.
- Period of Validity: Permits are temporary and expire after a set period of time in the validation aspect. In contrast, licenses are permanent.
A driving permit, for instance, lasts for up to two years, while a license lasts forever, but can be revoked for misuse.Note: Violations of the rules result in both the suspension of permits and the cancellation of licenses. - Different restrictions: Permits have more restrictions than licenses. In work permits, for instance, there is a description of several aspects, from the start of a particular activity to the availability of supervisions, everything is included in the terms and conditions.
Licenses, however, do not have many restrictions. - Apperance: As far as appearance is concerned, permits can be similar to a sticker which can act as an authorized stamp, whereas a license is a well-made card that is issued to an individual and has a more permanent appearance than permits.
Similarities Between Permits and Licenses
- Both contain specific terms and conditions regarding a particular activity.
- Both are issued by the relevant authorities
- Both can be terminated for violating the rules
- Both are legally binding contracts between an individual and the government
- Both specify conditions attached to certain services and goods
Permits and Licenses for Starting a Business
You may need several licenses or permits when starting a business.
- Local business license: Even if the business is already incorporated, a partnership, or an LLC, some cities and counties require it to obtain a business license.
- Fictitious name/DBA: Your state may require you to register your business name if you plan to operate under a fictitious name (also known as a DBA name).
- Federal Licenses and Permits: Some federal regulations require licenses and permits for your business. Several federal agencies may require you to have specific licenses, permits, or certificates in addition to local and state requirements.
- Sales Tax Permit: To sell taxable products or services, you must obtain a seller’s permit in your state. Online sales may also require this permit.
- Zoning permit: Some types of businesses may be restricted from operating in certain areas by local zoning regulations. Home business owners also have to comply with these regulations, not just manufacturers and restaurants. Your business may require a variance or conditional-use permit if the area where it is located is not zoned for it.
- Home occupation permit: You may need a home occupation permit if you plan to operate from your home. Check with your city or county to find out if you need one.
- Professional/occupational licenses. Some businesses and industries require special licenses for specific types of businesses. Depending on the state, businesses or industries will vary. In some states, childcare businesses are required to obtain a special license. In some states, lawyers and accountants are also required to obtain special licenses.
- Health permits: Health permits may be required for certain businesses, such as those handling food and preparing it.
- Fire department permits: You may need a permit or an inspection from your local fire department if you are using flammable materials, will be open to the public, or will have a lot of people gathered in one place.
- Building or construction permit: Your local authorities may require a building or construction permit if you plan to make any structural changes to the location where your business will operate.
FAQs:
Permits and licenses are both legal authorizations required to conduct certain activities, but they serve different purposes. Permits are typically issued for specific projects or temporary activities, while licenses grant ongoing permission to operate a business or provide certain services.
Permits are typically needed for activities such as construction, renovations, special events, or specific business operations that require regulatory approval. Examples include building permits, event permits, or health permits for food establishments.
Licenses are typically required for businesses or professionals operating in regulated industries. Examples include professional licenses for doctors, lawyers, or contractors, as well as business licenses for retail stores, restaurants, or service providers.
The process for obtaining a permit varies depending on the type and location. Contact the relevant local or state authority responsible for permits to inquire about the specific requirements, application process, and any associated fees or documentation needed.
To obtain a license, you usually need to fulfill specific requirements, such as education, experience, or passing exams. Contact the appropriate licensing board or agency in your jurisdiction to understand the necessary steps, documentation, and fees involved in obtaining a license for your industry or profession.
