The most critical step in starting a new ATM business is knowing how to get an ATM business license. The vast majority of ATM businesses require licenses.
There are several methods you could employ to get an ATM business license. Applying for a license online or by mail is one approach. Or you can seek the help of a third-party license filling company to assist you with the application. In most cases, the procedure is straightforward. All you have to do is fill out a form and pay a processing fee.
A business license is a legally binding document that allows your business to operate in a particular area. Getting an ATM business license will require time and resources. So, to plan appropriately, it’s always a good idea to know how to get an ATM business license.
These licenses are essential because they ensure that your ATM business complies with government regulations. As a result, getting an ATM business license is beneficial. The fees and conditions differ depending on the type of ATM business you intend to start.
To help you kick things off, we have created a guide on how to get an ATM business license. We’ll go over the various ATM business licenses you’ll need. Finally, the potential costs, timeline, and process for getting an ATM business license.
Types of ATM business licenses
The requirements for ATM business licenses differ from one state to the next. These are the most common ATM business licenses you will need to get.
Federal License
Federal agencies typically grant federal business licenses. This license allows you to operate your ATM business under the Electronic Fund Transfer Act.
State License
State licenses are issued by the state that lets you conduct business legally within a state. Each state enforces its own laws and policies regarding the operation of an ATM business. As a result, you must confirm the requirements with each state’s authorities depending on where you intend to set up your ATMs.
Local License
Most cities or counties also require a local license. This business license allows you to operate in a specific city.
What is the Cost of an ATM Business License?
The cost of your ATM business license is dictated by various factors, including the nature of the license and your location. On average, it will cost you between $50 and $100, plus renewal fees.
For example, fees for local licenses can range from a few dollars to thousands of dollars and can be once-off or recurring. To properly plan your budget, always research before applying for an ATM business license.
How Long Will It Take To Get an ATM Business License?
At most, the process may take four to five weeks to complete. In the best-case scenario, you should be able to get your ATM business license in a matter of days. The time it takes to get a license varies depending on your state and the type of license you need. Some states issue business licenses within a week, and others could take up to four weeks.
You can expedite the process by submitting a completed application online rather than mailing it. This is because the government agency can review an online application more quickly.
How to Get an ATM Business License
The process for getting an ATM business license varies depending on the type of license you require and the state or city. As a result, it’s always a good idea to seek legal advice or research before beginning the application process.
Determine What Business Licensing You Need
The most crucial step in getting an ATM business license is conducting research. You’ll need to figure out what kind of license you’ll need, what the requirements are, and how much it will cost.
Contact the correct organizations in the state or city you plan to operate. You can also look through the US Small Business Association’s directory for additional information or resources.
Bear in mind that this is typically a time-consuming process. However, it is necessary to do so to avoid unpleasant surprises.
Gather the Required Business Documents for Your Application
You should ensure that you have all the correct documents before sending in your application. The documents needed may differ subject to the type of license required, but the following are the most common:
- A short explanation of the business (e.g., Business name and structure)
- Business records copies (e.g., Articles of incorporation)
- Tax certificates or proof
- Confirmation of ownership or management
- Proof of payment processing fee
In addition, before applying for an ATM business license, you must have an EIN (Federal Employer Identification Number) from the IRS. If you feel overwhelmed by the entire application process, you can hire a filling company to assist you. Enlisting the services of a lawyer to assist you is also an option.
Apply for the Business License
Once you’ve gathered all the documents, it’s time to submit your ATM business license application. Each license application process is unique, so follow the instructions carefully. You can apply by mail, online, or in person.
Receive Your Business License
You will receive an approval within a few days after submitting your application. That said, in certain rare instances, you may have to wait a couple of weeks for approval. Contact the agency if you haven’t heard back after three to four weeks. After getting an ATM business license, you must ensure that all renewal fees are paid on time.
Key Takeaways
Since getting an ATM business license can take some time, it’s best to begin planning ahead of time. Rather than waiting until the last minute, because it may be too late by then.
Furthermore, operating an ATM business without a license could lead to substantial fines or even the closure of your business.
If you’re not sure of the best approach to take, seek advice from online resources. We also advise that you seek legal counsel to make certain that you’re compliant with all business license requirements.
