Local----A business license from city, town or county, depending on your location, will usually be necessary. In addition, you'll have to meet zoning laws, building codes, and similar regulations.
State----In most states, if your business isn't a corporation and your full name isn't in the name of the business, you'll have to register under what's called the fictitious name law. You should also file for a sales and use tax number. In some lines of business specific licenses are needed.
Federal--You'll need to contact the IRS for an employer's identification number (EIN) and it is a good idea to request a "Going Into Business Tax Kit."
1. Consideration of the business idea, usually explained in a business plan
3. Down payment (also known as ‘equity’ in an ongoing business)
4. Credit history and personal financial net worth
5. Management ability
6. Ability to repay the debt
7. Conditions of the economy and/or market area
Your financial condition
The line of business you’re entering
The number of employees
The risk involved
Your tax situation