Do I Need a License or Certification to Start a Manufacturing Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 days ago
- 3 min read
Starting a manufacturing business involves more than just securing equipment and hiring staff — it also requires meeting legal and regulatory requirements. One of the most common questions new manufacturers ask is: “Do I need a license or certification to operate legally?” The short answer is yes — but the specific requirements depend on your location, industry, and the type of products you manufacture.
At Wexford Insurance, we help manufacturing businesses not only protect their operations with tailored insurance programs, but also understand the compliance landscape that affects their ability to operate safely and legally.
Licenses and Permits You May Need
To legally start a manufacturing business in the U.S., you’ll typically need a combination of federal, state, and local licenses and permits. These may include:
1. Business Operation License
This is a general license issued by your city or county that allows you to legally operate a business in that jurisdiction.
2. Employer Identification Number (EIN)
Issued by the IRS, this is required for tax reporting and hiring employees. You may also need a state-level tax ID from your department of revenue.
3. DBA or Fictitious Business Name Permit
If you’re operating under a name different from your registered legal entity, you’ll need a “Doing Business As” permit.
4. Zoning and Land Use Permits
Manufacturing facilities must comply with local zoning laws. These permits ensure your location is approved for industrial use.
5. Sales Tax License
If you sell manufactured goods directly, you’ll need a sales tax license from your state.
6. Health Department Permits
Required if your manufacturing involves food, beverages, or other consumables.
7. Industry-Specific Certifications
Depending on your niche, you may need additional certifications. For example:
FDA compliance for food, cosmetics, or medical devices
ATF permits for firearms or explosives
Environmental permits for waste disposal or emissions
Do You Need Certifications to Manufacture Products?
Certifications aren’t always required to start a manufacturing business, but they can be essential depending on your industry. Common certifications include:
ISO 9001 – Quality management systems
NIMS – Machining and metalworking standards
AWS – Welding certifications
FDA or USDA – For regulated products like food, drugs, or medical devices
These certifications help build credibility, meet regulatory standards, and win contracts with larger clients.
Why Insurance Is Just as Important as Licensing
Even with the right licenses and certifications, your manufacturing business is exposed to risks — from equipment breakdowns to workplace injuries. That’s why insurance is a critical part of your legal and operational foundation.
At Wexford Insurance, we help manufacturers secure:
Learn more about our manufacturing insurance programs.
External Resources for Help
Final Thoughts
Yes, you do need licenses and possibly certifications to start a manufacturing business — and the requirements vary based on your location and industry. But just as important is having the right insurance to protect your investment and ensure compliance.
Ready to launch your manufacturing business with confidence?
Contact Wexford Insurance today for expert guidance .
