Small Business Resource Guide Regulatory and Licensing

Small Business Resource Guide – Regulatory and Licensing Requirements - Page 1

Small Business Resource Guide

Regulatory and Licensing Requirements

Navigating the maze of regulations and requirements for licenses, permits, and taxes

among the various city, state, and federal government agencies can be confusing and

overwhelming for the new, and even the experienced business owner. This guide is

designed to help you through that maze as you start, expand, or relocate your

business in Boston.

Please note that no one guide can address regulations pertaining to every business;

contact the appropriate agency directly to identify the appropriate process for your

particular business. While contact information is included with each step, you can also

download a more comprehensive agency contact list

, including a variety of additional

agencies that might be helpful depending on your business needs.

City of Boston Regulatory Requirements Checklist:

Zoning, Permitting, Licensing, Business Registration & Taxes



1. Comply with Zoning and Permitting Regulations

Why should a small business owner be concerned with city zoning policies? If you open

a commercial business in a residential zone or locate your business in a commercial

space not intended for that use, you could be closed down regardless of how much you

invested on renovations or the fact that you signed a lease.

Visit the City of Boston Inspectional Services Department (ISD) (see contact

information below) to determine the zoning and permitting regulations required for

your business. Depending on the type of business you want to start, you may need to

work with both the Building Division and the Division of Health Inspections.

A few

tips before you get started…

Start Early. Prepare your application well in advance of the date you wish to start any

activity that may require a license; it can take time to get a license approved,

especially if you need a permit that requires inspections or approval from multiple city

departments (e.g., Inspectional Services -Building and Health Divisions, Consumer

Affairs, Fire, Transportation) or qualifying exams.

Take Steps in the Right Order. Knowing what is required to obtain the permit will

save you time and aggravation. For example, know what documents you will need to

submit with the application and prepare them in advance. If the permit you need

requires multiple agency approval or both City and State approval, you should get

them in the order indicated.

Know the Rules. You need to be informed about what you can and cannot do under

the regulation or law because - even if you don't know the rules - inspectors do.

Before you commit to a location, follow the steps below. If you have questions, call the

relevant agency and ask.

City of Boston

Thomas M. Menino, Mayor

Department of Neighborhood Development

Small Business Resource Guide – Regulatory and Licensing Requirements - Page 2

Inspectional Services Department (ISD)

1010 Massachusetts Avenue

Boston, MA 02118

Phone: 617-635-5300 / 617-635-5326 Division of Health Inspections

Website: www.cityofboston.gov/isd

Building Division (5th floor)

The Building Division is responsible for overseeing the city's zoning ordinances, which

determine the types of activities allowed in any given building. Before you spend any

money on rent or remodeling, you should visit the Building Division to ensure that the

building you wish to locate in is zoned for your type of business. If it is not, you must

complete a Legal Occupancy/Use Application, have the building owner approve it,

and return the signed application to ISD.

Next, you will submit a floor plan and other documentation as requested by ISD.

If you intend to remodel, you may also need a Building Permit. You may also need a

variety of other permits, depending on the type of business you plan to open. Other

permits you may be required to obtain include Electrical and Fire Systems, Gas

Fitting, Plumbing and Sprinklers, and Occupancy.

What happens if your application is refused or denied?

If your business does not conform to the City’s building or zoning codes, the Building

Division will refuse your application. If your application is denied, you can apply for an

appeal at ISD. ISD will send your appeal to the Zoning Board of Appeals (ZBA) at City

Hall and then the ZBA will notify you/the business owner and all of the abutters of a

hearing date. Hearings take place at the Zoning Board of Appeals, City Hall, Room 801.

ISD has developed the Guide to the City of Boston Zoning Board of Appeal Process to

both assist you throughout the permitting process and to explain how Boston's zoning

code and the appeals process work to protect Boston’s neighborhoods. The guide is

available at the ISD website: From ISD home www.cityofboston.gov/isd

, click Plans

and Zoning. On the Zoning Board of Appeals page you will also find information about

zoning clinics, permits, and additional information.

Division of Health Inspections (4th Floor) www.cityofboston.gov/isd/health/

The Division of Health Inspections is responsible for overseeing the city's health and

sanitation issues involving food and cleanliness. You must visit this Division if your

business is one of the following: food service, retail food, hospital, nursing home,

caterer, day care, after school program, funeral home, massage practitioner, massage

establishment, mobile food, children's recreational camp, baths/health club, or

swimming pool. ISD Health Inspection information is contained on the website under

“Mayor’s Food Court”. Here you will find a selection of application forms for businesses

as well as additional information. Note some forms can be submitted online; others

must be printed and delivered to ISD. For more information, call 617-635-5326.

ISD offers a free 15-minute Zoning Clinic to help you through the process. This

clinic creates a customer-friendly atmosphere in which to discuss general or specific

zoning questions. An ISD Inspector will guide you through the steps required to

process your application. Commercial issues in the Zoning Clinic include: increasing

occupancy loads, signage, take-out restaurant use, offices, home business uses, and

more. The clinic is offered every Tuesday from 9 a.m.-12 p.m. (no appointment is

required) at ISD Plans and Zoning, counter #2, fifth floor, 1010 Massachusetts

Avenue,

Boston, MA 02118

Small Business Resource Guide – Regulatory and Licensing Requirements - Page 3

 2. Obtain Any Necessary City of Boston Business Licenses

Depending on the services you render, your business may be required to obtain

licenses from one or more City of Boston regulatory agencies. These agencies may

include the Boston Licensing Board, and the Inspectional Services, Public Works,

Transportation, Police and/or Fire Departments.

The Licensing Board grants and regulates various types of alcohol and food licenses for

restaurants, nightclubs, private clubs, package stores, hotels, and inns. The Board also

grants and regulates licenses for common victualers (food only establishments), hotels

(with or without alcohol), bowling alleys, pool tables, lodging houses, dormitories

(including fraternities), and fortunetellers.

Boston Licensing Board

City Hall, Room 809

Boston, MA 02201

Phone: 617-635-4170

Website: www.cityofboston.gov/licensing/

Below are some examples of common licensing and permitting situations:

Situation Licenses & Permits Needed Regulating Agencies

Food Service Establishment

or Retail Food Store

You will serve or sell milk

or frozen desserts

Common Victualer's License.

After receiving CV License, file the

appropriate licenses with the ISD Health

Inspections Division.

Boston Licensing Board

www.cityofboston.gov/licensing/

Inspectional Services Health Division

www.cityofboston.gov/isd

Will be using a dumpster Site Cleanliness License

www.cityofboston.gov/isd/sitecleanliness/

Inspectional Services Health Division

Environmental Sanitation Division

www.cityofboston.gov/isd/esan/

Will vend from a

stationary unit or

have a sidewalk sale

on a public sidewalk

You must make sure that

the area is within a legal

area for vendors; and

you will need to get

approval from the

building owner and first

floor tenants of the

property in front of

which you.

Placement of vehicle

for vending purposes

in the public way

Propane or Sterno are

to be used

Mobile vendor

Stationary Vending License

Complete an Application for the Sale,

Storage and Display of Merchandise in

the Public Ways in the City of Boston

Apply for approval

If applicable, health permits should be

obtained after

the Stationary Vending License

has received approval from the Public Works

Department and the Boston Police

Department. For a detailed description of the

regulations and requirements, and to obtain

an application, go to:

www.cityofboston.gov/publicworks/PrmVending.asp

You can download an application at:

www.cityofboston.gov/publicworks/pdfs/Vendor.pdf

Obtain Fire Permit -Only after the

Stationary Vending License has received

approval from the Public Works Dept. and the

Boston Police Dept.

License from the State required - The City

of Boston does not license peddlers, hawkers,

or transient (not stationary) vendors.

Public Works Department

www.cityofboston.gov/publicworks/

Public Works issues vending licenses

for stationary selling at a specific

location; however they do not issue

licenses that allow movement from

one location to another. There are

several requirements & restrictions

on stationary vendors due to public

safety issues

If you are vending on a public street,

you must go to Boston Police

Headquarters 617-343-4425

Boston Police Department

www.cityofboston.gov/police/

Transportation Dept.

www.cityofboston.gov/transportation/

Boston Fire Department

www.cityofboston.gov/fire/

Fire Prevention 617-343-2191

State Division of Standards

www.mass.gov/dos

Your business will involve

any entertainment

Obtain Entertainment License

www.cityofboston.gov/consumeraffairs/entert

ainment.asp

Office of Consumer Affairs and

Licensing

www.cityofboston.gov/consumeraffairs/

Placement of temporary

or permanent signage

Sign Permit * Make sure to check zoning

regulations before

you design or contract for any

sign.

Inspectional Services 5

Floor, Counter 1

www.cityofboston.gov/isd

Small Business Resource Guide – Regulatory and Licensing Requirements - Page 4

 3. Register Your Business

One of the first decisions you will encounter in starting a new business is choosing a

business structure. The information in this section pertains only to the Boston

municipal business registration procedure. To learn about different business entities,

visit www.mass.gov/

and enter “choosing a business entity” in the search box. For

information related to registering a corporation with the State, contact the Secretary of

the Commonwealth at 617-727-9640 or http://www.sec.state.ma.us/cor/coridx.htm

All unincorporated businesses and any corporation that is doing business in the City of

Boston and not registered in Massachusetts must file a Business Certificate form,

also known as a Doing Business As (DBA) form, with the Office of the City Clerk. The

only exception to the registration requirement is if you will be using your own name as

your business name. For instance, if your name is Sue Smith and your business will be

called Sue Smith, you do not need to register. However, if you add anything to your

name - for example, Sue Smith Auto Body - you are required to register your business.

Contact the Office of the City Clerk with any questions about this requirement.

Office of the City Clerk

Boston City Hall, Room 601

Boston, MA 02201

Phone: 617-635-4600, then press 0

Website: www.cityofboston.gov/cityclerk

To register your business with the City of Boston, you must submit a notarized

Business Certificate form to the Office of the City Clerk. The form must be signed by

each of the business owners and each signature must be notarized individually. Submit

the notarized form with $50 filing fee (business check or money order) payable to the

City of Boston. An additional $25 filing fee must be included with this application for

any corporation not registered in Massachusetts or for a domestic or foreign

corporation using a different trade name for conducting business.

Business Certificate forms can be obtained the following ways:

• Visit the office in person weekdays from 9:00 a.m. until 5:00 p.m. (If you

intend to file the form at that time, all owners must be present to have

signatures notarized at the office.)

• Mail a written request for the form, along with a self-addressed stamped

envelope, to the above address.

• Purchase a copy at your local stationery store.

• Download the online form from the City Clerk's website.

 4. File a Form of List at the Assessing Department

When you start a business in any given year, you must file a Form of List with the

Assessing Department by March 1

of the following year. Individuals, partnerships,

associations or trusts, corporations, and limited liability companies subject to taxation

in Boston must file a Form of List annually.

This form lists all tangible business assets, such as: machinery, equipment, furniture,

and fixtures. It is used by the Assessing Department to assess values on all real and

personal property located within the City of Boston. Assets assessed at below $10,000

will not be subject to taxation. However, all business must file the form; failing to do

so will result in a penalty of a percentage of the assessed value of your tangible

business assets.

The form can be obtained at the Assessing Department office or at the website below.

Small Business Resource Guide – Regulatory and Licensing Requirements - Page 5

Once your business is registered with the Assessing Department, blank forms and

instructions will be mailed to you annually. For complete information and to obtain blank

forms, contact:

Assessing Department

Personal Property Unit

Boston City Hall, Room 301

Boston, MA 02201

Phone: 617-635-1165

Email: [email protected]

Website: www.cityofboston.gov/assessing/perproprty.asp

State & Federal Regulatory Requirements Checklist:

Licenses, Taxes & Employer Obligations

The following steps are provided as an overview only. Additional information should be

obtained using the state and federal contacts provided.

 5. Obtain Necessary Massachusetts Licenses

Many specialized occupations require licenses from the Commonwealth of

Massachusetts. The business section of the state website provides a detailed

breakdown of occupations and the agencies that oversee their licensing.

The Division of Professional Licensure is an agency within the state Office of Consumer

Affairs and Business Regulation, with 31 boards of registration

regulating more than 50

trades and professions

. The division is responsible for licensing and regulating the

activities of over 330,000 individuals, corporations, and partnerships.

To conduct a search for specific state requirements by occupation, visit

www.mass.gov

, click For Businesses at the top of the page; then go to the Help and

Resources menu and click on Licensing and Regulation. (Add link)

Division of Professional Licensure

239 Causeway Street

Boston, MA 02114

Phone: 617-727-3074

Fax: 617-727-2197

Website: www.mass.gov

Taxes:

Once you start your business, you will have to start paying taxes to both the

federal government and the Commonwealth of Massachusetts.

For one-stop service on all City of Boston tax related matters, visit:

Taxpayers Referral and Assistance Center (TRAC)

Boston City Hall

Room M-5, (on the mezzanine level)

Boston, MA 02201

Phone: 617-635-4287

Website: www.cityofboston.gov/TRAC

Small Business Resource Guide – Regulatory and Licensing Requirements - Page 6

 6. Apply for a Federal Tax Identification Number

An Employer Identification Number (EIN) is also known as a Federal Tax Identification

Number, and is used to identify a business entity. This number is used for both federal

and state tax purposes.

Businesses that must obtain an EIN number include: sole proprietorships with one or

more employees (not including yourself), and partnerships and corporations with or

without employees. Sole proprietorships without employees (other than the owner)

that are required to file excise, alcohol, tobacco, firearms, or employment tax returns

must also obtain a federal employer identification number. A married couple running a

business together (with or without employees) is considered a partnership, not a sole

proprietorship, and must obtain an EIN.

Exception: Sole proprietorships without employees (other than the owner), and which

are not required to file excise, alcohol, tobacco, firearms do not need to obtain a

federal employer identification number. They can use their social security number for

business tax purposes.

You may apply for an EIN in various ways:

To obtain a federal identification number, you must file Form SS-4, Application for

Employer Identification Number, with the Internal Revenue Service. You can apply

online at www.irs.gov/businesses/small/

or over the phone by calling (800) 829-4933.

 7. Register Your Business with the Massachusetts Department of Revenue

Most businesses or their owners are required to pay some amount of tax on their

business income. The Massachusetts Department of Revenue (DOR) oversees taxation

for the State. The specifics of income tax, including forms and deadlines, depend on

how your business is structured. For additional information, visit www.mass.gov

and

enter “Business Obligations” in the search box.

Also, any business that will sell taxable items in Massachusetts is required to apply for

a Sales and Use Tax Registration Certificate; certain businesses may also be

required to pay Trustee and/or Excise Taxes.

DOR has compiled a useful online reference, “Guide to Massachusetts Tax and

Employer Obligations”, which provides specific information on a variety of state tax

issues. This guide is available on the DOR website along with many other helpful tax

related publications. DOR also offers a free Small Business Workshop designed to walk

you through the tax issues. This workshop is co-sponsored by the IRS and also covers

important federal tax issues. Registration is accepted online or by phone.

Massachusetts Department of Revenue

Customer Service Bureau

Charles F. Hurley Building

19 Staniford Street

Boston, MA 02114

Phone: 617-887-6367 or toll free in state at 1-800-392-6089

Website: www.mass.gov/dor

After you have completed the registration process, the DOR will determine the

requirements you will need to meet regarding tax filing frequency and will send you

the appropriate monthly, quarterly, and/or annual returns. It is your responsibility to

inform yourself and to comply with the state tax filing requirements.

Small Business Resource Guide – Regulatory and Licensing Requirements - Page 7

 8. File Federal Income Tax Forms for Your Business

The federal income tax forms you will be required to file with the Internal Revenue

Service depend on your type of business and its legal structure. The IRS business

website, www.irs.gov/businesses/

, provides valuable information organized by

business structure. For additional guidance, a business owner is advised to consult a

CPA or tax attorney.

Internal Revenue Service

J.F.K. Federal Building

Government Center

Boston, MA 02203

Phone: 617-316-2850 or 1-800-829-1040

Website: www.irs.gov/businesses/

Steps 9-14 Below Pertain To Your Responsibilities as an Employer:

For additional information, visit www.mass.gov and enter “Business Obligations” in the

search field.

 9. Health Insurance Requirements & Employer Obligations

As of July 1, 2007, most residents of Massachusetts, age 18 and older, are required to

have health insurance. The law also places certain responsibilities on employers to

ensure that health insurance is accessible to as many individuals as possible. The law

affects businesses in different ways depending on their size.

Under Massachusetts’ first-in-the-nation health care reform law, employers with 11 or

more employees must make a “fair and reasonable” contribution to their full-time

employees’ health insurance costs. They are also required to establish a Section 125

Plan to allow all of their employees to pay their health insurance premiums on a pre-

tax basis. In general, businesses with fewer than 11 employees are exempt from most

requirements of the law. However, their employees who live in Massachusetts are still

required to have health insurance.

To learn more about employer responsibilities under the new law, contact the

Commonwealth Connector at (877) MA-ENROLL or at www.mahealthconnector.org

Need help paying for health insurance?

The Insurance Partnership is a Massachusetts state program developed by the Executive

Office of Health and Human Services and funded by state and federal governments. It

helps qualified small businesses with uninsured employees, and the self-employed pay

for health insurance. The goal of the Insurance Partnership is to reduce the number of

uninsured residents in Massachusetts.

As part of healthcare reform, the Commonwealth of Massachusetts has expanded the

eligibility for uninsured residents by raising the income ceiling for The Insurance

Partnership. Now, more uninsured, working residents than ever are eligible for the

program. For further information, contact:

The Insurance Partnership

2 Hampshire Street, Suite 100

Foxboro, MA 02035

Phone: 1-800-399-8285 (Within Massachusetts only) or 1-508-698-2070

Fax: 1-508-543-0432 The Insurance Partnership

Website: www.insurancepartnership.org

Small Business Resource Guide – Regulatory and Licensing Requirements - Page 8

 10. Register with the Massachusetts Division of Unemployment Assistance

If you will have employees, you must register with the Massachusetts Division of

Unemployment Assistance (DUA). You are required to complete the Employer Status

Report, Form 1110, available online at www.mass.gov/dua

, which registers you with

DUA to pay state unemployment tax. (Search Form 1110). Here you will also find

contribution forms and related publications.

Massachusetts Division of Unemployment Assistance

Contributions Department

Charles F. Hurley Building

19 Staniford Street, 5th Floor

Boston, MA 02114

Phone: 617-626-6560

Website: www.mass.gov/dua

 11. Acquire Workers' Compensation Insurance

All employers in Massachusetts are required to carry workers' compensation insurance

covering their employees, including themselves if they are an employee of their

company. This requirement applies regardless of the number of hours worked in any

given week, except that domestic service employees must work a minimum of 16

hours per week in order to require coverage. The Department of Industrial Accidents

(DIA) enforces the workers' compensation law in Massachusetts. The Department of

Industrial Accidents (DIA) enforces the workers' compensation law in Massachusetts.

Workers’ Compensation Insurance can be obtained through any insurance agent or

broker that handles business insurance, through a direct writer of insurance, or

through the Insurance Rating Bureau, 617-439-9030.

For additional information contact the Department of Industrial Accidents directly.

Department of Industrial Accidents

Labor and Workforce Development

600 Washington Street, 7th Floor

Boston, MA 02111

Phone: 617-727-4900; or 1-800-323-3249, extension 470

Website: www.mass.gov/dia

 12. Create a System for Collecting Federal Unemployment Insurance Tax

If you will have employees, under the Federal Unemployment Tax Act (FUTA), you as

the employer are responsible to pay Federal Unemployment Insurance Tax. You must

complete IRS Form 940 and submit it to the IRS. For more information visit

www.irs.gov/businesses/

, see Employment Taxes for Small Businesses, or to speak

with someone, contact the IRS at (800) 829-1040.

 13. Establish a Process for Collecting & Depositing Payroll Taxes

The Internal Revenue Service (IRS), Social Security Administration and most states

require employers to make appropriate withholdings from employee wages. They also

require that withholding be deposited and a proper accounting made of such amounts

withheld. Failure to make necessary tax payments in time can subject you to penalties

and interest as well as potential liens against your property. Employers are required to

withhold from their employee's payroll the following items:

Small Business Resource Guide – Regulatory and Licensing Requirements - Page 9

• Federal income tax.

• State income tax -

see State Trustee Taxes section above.

• The employee’s share of social security and Medicare taxes (FICA).

Additionally, employers are liable for the following taxes, which are related to or based

upon payroll:

• Federal unemployment tax (FUTA).

• State unemployment insurance.

• The employer's share of social security and Medicare taxes (FICA).

New requirements exist for filing certain information returns on magnetic media to the

IRS depending upon the type of form and number of forms to be filed. Substantial

penalties exist for failure to file on magnetic media if such reporting is required.

The IRS website provides information on this topic: visit www.irs.gov/businesses/

and

click Employment Taxes for Small Businesses. There are many useful topics in this

section; IRS recommends you read "Publication 15, Circular E, Employer's Tax Guide,"

which can be found under Employment Tax Publications.

 14. Report Employees to the Department of Revenue

All employers, regardless of size or type of business, are required by law to report all

newly hired employees, employees returning to work after 30 days, and independent

contractors who will be earning $600 or more to the Massachusetts Department of

Revenue (DOR) within 14 days of hire. This information is then compared to the DOR’s

database of individuals who are required to pay child support. When there is a match,

DOR notifies the employer to withhold child support and remit the funds to DOR for

distribution to families entitled to support. The information is also used to combat

fraud in programs run by various state and federal agencies. Visit the DOR web site at

www.mass.gov/dor

and click on the tab for businesses to learn more.

The Office of Business Development (OBD) Can Help:

The Department of Neighborhood Development’s Office of Business Development offers

a variety of programs and resources to assist owners of start-up and existing

businesses that are interested in establishing, expanding, or relocating to Boston. As

your voice in City Hall, the Business Assistance Team will advocate for you and guide

you through the city permitting, licensing and permitting processes.

Please visit our webpage for news and information on current programs and events or,

for assistance, call our office 617-635-0355.

City of Boston

Department of Neighborhood Development

Office of Business Development

26 Court Street, 9

floor

Boston, MA 02118

Phone: 617-635-0355

Fax: 617-635-0282

Website: www.cityofboston.gov/dnd/obd