Governments require licenses and permits for two basic reasons. One is to raise money; the whole point behind some licenses or permits is to levy a tax on doing business. In a way, these are the easiest to comply with - you pay your money and get your license.

The other basic purpose behind licenses and permits is to protect public health and safety and, increasingly, aesthetics. A sign ordinance that dictates the size and placement of a business sign or an environmental regulation that prohibits you from releasing sulphur dioxide into the atmosphere are two of many possible examples. Complying with regulatory ordinances can often be far more difficult than those designed simply to raise money.

Excerpted from the "Legal Guide for Starting and Running a Small Business" by Fred S. Steingold
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