How To Get a Business License in 6 Simple Steps (2027)

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How you get a business license, and whether you need one, depends on where you plan to operate and what type of business you’re starting. Some places require all companies to secure a general business license. In others, you’ll only need to get one if you work in a regulated industry like health care or construction.

Read on to learn about the different types of business licenses, how to secure one for your company, and the licensing requirements of each US state. 

What is a business license?

A business license is a government-issued legal document granting entrepreneurs permission to run a business within a specific jurisdiction or within a specific industry. It proves your business complies with local regulations and allows you to conduct commercial activities. 

Business licenses go by various names. You might see them called “licenses,” “permits,” or “registrations.” One state might call a permit what another calls a license. 

Types of business licenses

There are several different types of business licenses, and you might need more than one. License types include:

• Federal licenses. Required for businesses regulated by federal agencies, including those in sectors such as aviation, broadcasting, and alcohol manufacturing.

• General state business licenses. Some states, such as Nevada and Delaware, require you to obtain a general license to operate a business, regardless of your industry.

• Professional licenses. Health care professionals, lawyers, and barbers, among many others, may need industry licenses to demonstrate compliance with specialized regulations in their field. These are frequently administered by state professional boards.

• Business operating licenses. These are typically to ensure adherence to local zoning, safety, and operational considerations. They may also be required for tax collection purposes. 

• Special permits. Often required for specific activities or situations, like hosting events or serving alcohol.

Do you need a business license?

Whether you need a business license depends on the nature of your business and your location. In some jurisdictions, a business license is required for all businesses. In others, only certain types of businesses need a license.

If you have a brick-and-mortar store, there may be additional licensing requirements related to zoning compliance and health and safety standards. Failing to secure a required license can result in fines, legal complications, or even a forced shutdown.

Check the Small Business Administration (SBA) website to see whether you need federal business licenses. 

To see if you need state and local licenses, you can call your county clerk. Many states also have extensive online resources that can help guide you through the process of setting up your business and securing the appropriate licenses. 

Which states have a statewide general license requirement?

Only a handful of states have general business license requirements. These licenses go by various names, but typically all companies operating in the state must obtain one. Here are those states:

• Alabama

• Delaware

• Hawaii

• Nevada

What you need to get a business license

To secure a federal business license, you’ll need a federal tax ID, also known as an employer identification number (EIN). You can get this for free from the IRS. Here’s what you need to apply for an EIN:

• Your business entity type (like LLC or S corp)

• The Social Security number or taxpayer ID number of the person in charge of your business

To get state and local business licenses, you generally need: 

• Owner’s name and contact information

• Business name and contact information

• An EIN

• Payment of any required fees 

Each state has its own process. Check directly with your local jurisdiction to confirm what’s required to get a business license.

How to get a business license

1. Register your business
2. File for an employer identification number (EIN)
3. Acquire a federal business license or permit
4. Acquire state and municipal licenses
5. Register to collect sales tax
6. Renew your business license

To obtain a business license, you’ll need to register your company with local, state, and federal regulatory agencies.

1. Register your business

Registering your business is the first step toward making it official. Here’s an overview of how to do it:

Choose a business structure

Your business’s structure determines how your company is taxed, your level of personal liability, and what operational requirements you’ll have to fulfill. 

Here are the different types of business structures:

• Sole proprietorship: A sole proprietor runs an unincorporated business alone, with no legal distinction between owner and business. 

• General partnership: A general partnership is similar to a sole proprietorship, but it involves two or more people who agree to share ownership, profits, and responsibilities. A general partnership usually needs a partnership agreement that outlines each partner’s role, but it’s not necessarily required. 

• LLC: A limited liability company (LLC) establishes a separate legal entity, providing liability protection for the business owner(s). An LLC can be formed by one or more owners, called “members.”

• Corporation: A corporation is a legal entity that is separate from its owners with strong liability protection. Corporations must be governed by a board of directors and observe certain formalities, like holding annual board meetings. Corporations usually form as C corporations (C corps), which are subject to double taxation: once at the corporate level and again when profits are distributed to shareholders. Some can elect for S corporation (S corp) status, which grants the company pass-through taxation but limits the number of shareholders it can have.

• LLP: An LLP (limited liability partnership) provides business partners with personal liability protection so they don’t assume liability for the wrongdoings of other partners, employees, or the partnership itself. Some jurisdictions require businesses in fields such as law, accounting, or architecture to be registered as LLPs. 

File registration paperwork with your state

If you’ve decided to start a sole proprietorship, you don’t need to officially register your business. This is also the case with general partnerships in most US states. 

If you’ve decided on another business structure, visit your state’s website to learn what paperwork you need to file with your Department of State to officially register your company. You’ll also need to pay fees, which vary by business structure and state.

File a DBA

If you plan to conduct business under a different name than the one you officially registered, you need to file a doing-business-as (DBA) form or its equivalent with your state.

Say you register your business as “Linda’s Cake Bakery LLC.” You’ll need a DBA in order to drop the “LLC” and market your business as “Linda’s Cake Bakery.”

You’ll generally need to file a DBA to market a sole proprietorship under anything other than your name. Since you don’t officially register a sole proprietorship, your business assumes your full legal name by default.

2. File for an employer identification number (EIN)

To apply for an EIN, you’ll need to provide basic information about your business, including its legal structure and ownership details. Obtaining an EIN is a prerequisite for various licensing procedures and simplifies tax reporting and other administrative tasks like payroll.

3. Acquire a federal business license or permit

Businesses operating in certain industries must acquire a federal license issued by the corresponding agency. 

Here are the industries requiring a federal business license, and the responsible federal agencies for each: 

• Radio and television broadcasting: Federal Communications Commission (FCC)

• Transportation and logistics:US Department of Transportation (DOT)

• Alcohol: Alcohol and Tobacco Tax and Trade Bureau

• Agriculture: US Department of Agriculture

• Aviation: Federal Aviation Administration (FAA)

• Firearms, ammunition, and explosives:Bureau of Alcohol, Tobacco, Firearms and Explosives

• Fish and wildlife: US Fish and Wildlife Service

• Commercial fisheries: National Oceanic and Atmospheric Administration Fisheries Service

• Maritime transportation: Federal Maritime Commission

• Mining and drilling:Bureau of Safety and Environmental Enforcement

• Nuclear energy: US Nuclear Regulatory Commission

4. Acquire state and municipal licenses

Once you have federal licensing squared away, check with state and local governments. Requirements differ across jurisdictions, but you’ll generally need to gather personal and business information, pay fees, and submit completed forms. 

Some states require companies to secure general business licenses. Others only require licenses for businesses in specific fields. Here are industries that many state and local governments regulate:

• Auctions

• Construction

• Dry cleaning

• Farming

• Plumbing

• Restaurants

• Retail

• Vending machines

Certain types of workers—like accountants, hairdressers, lawyers, and electricians—are often obliged to obtain professional licenses at the state level. These often involve passing exams that prove you meet certain standards and attaining a preset number of practice hours. State boards distribute these professional licenses.

Many states have portals that can help you determine what you’ll need. You’ll input information about your business, and your state’s website will tell you which licenses you’ll likely need. Other states have webpages that break down licenses by industry, so you can figure out which ones might be required.

5. Register to collect sales tax

If your business sells goods or services that are subject to sales tax, you’ll likely need to register with your state to collect it from your customers. Some states call this registering for a seller’s permit. It often carries a registration fee.

6. Renew your business license

Most licenses require periodic renewal. In some states, you’ll renew annually, in others, every two or three years. Some renewals are free, while others involve fees.

Business licensing requirements in each state

State license requirements vary by state and business activity. In states where licenses are required from city, town, or county offices, be sure to check with your municipality’s clerk to understand specific local requirements. 

Alabama

Businesses in Alabama generally need a Business Privilege License from the Alabama Department of Revenue. Costs can vary depending on the business and its location. The business privilege license generally must be renewed annually by October 31, or you’ll pay a 15% tax penalty, plus interest. 

Alaska

Many companies in Alaska need a business license from the state. Some businesses, such as fisheries, mining companies, and those selling liquor, instead obtain a separate license from the associated state regulatory board. 

An Alaska business license costs $50 annually. Licenses expire on December 31, unless issued after October 1. A license issued after October 1 is valid for the remainder of the year as well as the following calendar year (or two years if it’s a two-year license). Alaska also offers a senior discount or a disabled veterans discount. Qualifying business owners pay $25 instead of $50 per year.

Arizona

In Arizona, sellers in certain industries must pay a transaction privilege tax (TPT). TPT licenses cost $12 per business location. Note that both physical and online retail stores must secure a TPT license.

You might also need professional licenses depending on your field, and occupancy licenses if you have a physical location.

Arkansas

In Arkansas, business license fees range from $50 to more than $1,000 per year, depending on business type and inventory you have, according to the Arkansas Small Business and Technology Development Center. Whether or not you need a license at all depends on your city and county, so be sure to research the requirements in your specific location.

California

Certain business types in California, like car washes, amusement parks, and garment manufacturers, are state-regulated and require licensing from a corresponding board or division. Some counties and cities also require local business licensing. Check the CalGold permit assistance tool for license requirements and fees. 

Colorado

Some business types in Colorado require state-level licensing, including companies in the health care, personal services, banking, and transportation sectors. There may be additional requirements by location, so the state suggests checking with your city hall or county clerk. Fees can vary based on the business and its location.

Connecticut

In Connecticut, the business licenses you need depend on your industry. If you’re in retail, accounting, real estate, or construction, for example, you’ll need a license from the Department of Consumer Protection. If you’re in health care, you’ll need a license from the Department of Public Health. You can learn more about industry-specific licenses on Connecticut’s state website.

Delaware

All businesses operating in Delaware must obtain a business license from the Delaware Division of Revenue. These licenses generally cost $75 for your first location. A 75% discount is available to eligible business owners aged 65 years or older. 

You might need additional licenses from your town or county, so be sure to check with your local government offices to make sure you’re meeting all the requirements. Hotels, healthcare facilities, short-term rental businesses, and insurance companies, among other business types, may require additional licensing from other state agencies. 

Florida

Florida doesn’t have a statewide business license requirement, but you might need a license depending on your industry. For example, barbers, architects, and auctioneers need a license from the Department of Business & Professional Regulation, and businesses like pawn shops and private investigators need a license from the Department of Agriculture and Consumer Services. 

In most counties, you also need an occupational license. This is for the purpose of paying county taxes. To find out if you need one, check with your local county tax collector. A searchable list is available on Florida’s state website.

Georgia

Georgia doesn’t have a one-size-fits-all business license at the state level, but its Department of Revenue requires licenses for businesses in certain industries. There are also a number of state boards that distribute professional licenses, like the Georgia State Board of Veterinary Medicine, the Georgia Department of Auctioneers, and the Georgia State Board of Architects and Interior Designers.

Almost every business also needs a license from their city or county. You can find contact information for your local government through the Georgia Chamber of Commerce Directory.

Hawaii

Hawaii requires all businesses to obtain a General Excise Tax License license to operate. This license has a one-time $20 fee. You’ll also need to obtain a state license if you sell liquor, tobacco, or liquid fuel, among other regulated products. 

Depending on where you’re based, you might need additional licenses, too. In Honolulu, for example, you’ll need a license if you sell secondhand goods or work as an auctioneer, among other professions.

Idaho

Idaho has a number of state licensing bodies, including the Board of Accountancy and Board of Medicine, while some municipalities have their own licensing requirements. The state has a Business Wizard tool to help you determine which licenses you’ll need for your business. 

Illinois

Illinois doesn’t issue general state business licenses, but some professionals, like barbers, physicians, and therapists, require a professional license. There are also licensing requirements for certain industries and activities, like running a campground, selling eggs, or offering alcohol tastings.

There may be local city or county requirements, too. For example, most businesses operating in Chicago need a Chicago city business license.

Indiana

Indiana businesses will need a license from a professional board to work in regulated industries, including dentistry, acupuncture, accounting, real estate, and more. 

You might also need a local business license. The city of Indianapolis, for example, licenses businesses in industries, including towing, hotels and motels, massage, and child care. 

Iowa

Iowa does not have a statewide general business license, but you might need to get a license depending on your business and product type. Iowa provides an online resource for finding different licenses. Choose your business type and the tool will show you the licenses you need.

Kansas

Businesses in Kansas might need a state-issued license that’s specific to their industry. Kansas has a wide-reaching list of licenses and permits on its state website. For example, you’ll need a license to be a caterer, run a billboard, or be a detective. Kansas’s list provides the associated state agency and their phone number to help you get started. You’ll also want to check with your town and county clerk to make sure you have all the necessary local permits and registrations.

Kentucky

Kentucky doesn’t have a statewide business license requirement, but the state’s website notes that most businesses will need at least one license or permit to operate, and that many local jurisdictions require licenses.

Certain types of businesses require a license from Kentucky’s Department of Professional Licensing, which distributes licenses for businesses in industries like health care You might also need a license from your city or county.

Louisiana

Louisiana doesn’t have a statewide business license requirement, however, the Louisiana Small Business Administration notes that you might also need a certificate of occupancy (a local license from your city or parish), a state or local occupational license, a local food permit, or a state beverage or tobacco permit.

Maine

In Maine, general operating business licenses are managed at the municipal level. The state recommends checking with your town office to see what you need. Depending on your industry, you might need other licenses too, like liquor or gaming licenses. 

Maryland

Maryland doesn’t require a general business license, but most businesses require at least one license. That might be an occupational or professional license, or it might be a trader’s license: In Maryland, anyone who buys goods and sells them to consumers needs a trader’s license. 

Maryland provides a number of resources to determine which licenses you need. To find state licenses, use Maryland’s Licensing OneStop Portal. To find local licenses, contact your Circuit Court Clerk (Maryland provides a list) or use the state’s online license application tool. You can also visit Maryland’s Division of Occupational and Professional Licensing site to find out which professional licenses you need. To determine additional permit requirements, visit the website of the Comptroller of Maryland.

Massachusetts

Massachusetts businesses might need an occupational license depending on their industry. Massachusetts’s Division of Occupational Licensure regulates more than 100 professions.

Depending on where you’re based, you might also need a city business certificate. This functions as a business license and allows you to do business in that city. In Boston, for example, you’ll need to obtain a business certificate through the city clerk’s office and renew it every four years.

Michigan

While Michigan doesn’t have a statewide general business license, you might need an industry-specific license. The state provides a list of license and permit types on its website. You can use the state’s license search tool to find licenses you may need.

You might also need an industry-specific license from your city, so be sure to check your town’s website for details. For example, you need a license from the city of Lansing if you run an ice cream truck there.

Minnesota

Minnesota doesn’t have a general business license, but state agencies issue licenses, permits, registrations, and certifications at the state-level. You can browse a list of Minnesota licenses broken down by industry to figure out what you might need. Your town might also require special licenses, so check with your local government to confirm requirements.

Mississippi

Businesses in Mississippi don’t have a state-level license requirement, but some local governments and specific industries require licenses or permits. You can see the phone numbers and addresses of your city and county offices by using Mississippi’s Business One Stop Shop tool. You’ll input basic information about your business, and the tool will walk you through the steps of getting it started.

Missouri

Missouri doesn’t have a general state business license, but you might need to register for a license from your city or county. Certain professions also require licenses from the Missouri Division of Professional Registration. This body encompasses 38 professional boards. 

To get your business started in Missouri, you can follow the steps laid out by the Missouri Secretary of State’s office.

Montana

The state of Montana doesn’t issue general business licenses, although some local jurisdictions require them. The state issues professional licenses for certain fields. You can see which industries are licensed by the state by visiting the website of the Montana Department of Revenue. For help figuring out which licenses you need, contact the Secretary of State’s office.

Nebraska

Certain businesses in Nebraska will need to attain a state license depending on their industry (like companies in the alcohol, health care, or agriculture sectors). Nebraska’s One Stop Portal for business licensing can show you a list of potential licenses for different sectors.

Nevada

Nevada requires all businesses to secure a state business license. It costs $500 for corporations and $200 for other business types. You must renew it annually. On top of this, businesses generally must get a local license to operate in a specific city. Check your county’s website to download the paperwork for your local business license. 

New Hampshire

New Hampshire doesn’t have a general state business license, but companies in certain industries must be licensed by the state. The Department of Revenue Administration has details on its Tax Licenses and Permits page. For example, the state issues a meals and rooms license for hotels, car rental businesses, and establishments that serve food to collect taxes. If you sell food, you’ll need a permit from the New Hampshire Department of Health and Human Services. You might also need a professional license from one of more than 50 occupational boards. Local governments may also require municipal permits as well.

New Jersey

You don’t need a general state business license to run a company in New Jersey, but you might need a license depending on your industry. The state’s website has a list of over 500 potential licenses and certifications. It also has a registration portal where you enter information on your company and receive a tailored guide on how to legally operate your business.

New Mexico

New Mexico doesn’t have a statewide business license requirement. However, businesses in industries like construction and liquor sales need special licenses. You’ll also need a license to operate in financial professions like accountancy and real estate. The state’s licenses and permits page can help you find what you need.

New York

While businesses don’t have to pay for a universal state business license in New York, the New York Department of State issues professional licenses for 36 industries. You might also need licensees or permits from your local government. The New York Business Express portal can show you which regulations apply to your business.

North Carolina

North Carolina doesn’t have a single business license required for all companies, but there are almost 950 regulatory, state-issued, and occupational licenses and permits. You might also need a local license. North Carolina provides access to small business advisers who can help you get started. They can provide you detailed information on state licenses and contact information for local governments.

North Dakota

North Dakota doesn’t issue a statewide business license. However, some businesses may need to register based on industry and occupation. The North Dakota Attorney General issues some of these licenses (for selling alcohol and fireworks, for example), and the Secretary of State issues others (like ones for contractors and athletic agents). Other licenses come from professional boards. You can visit the Secretary of State’s office to learn more.

Ohio

Although there’s no statewide business license requirement in Ohio, many businesses and professionals require special certifications, licenses, and permits. The state provides a list of licenses broken down by industry. If you can’t find your industry, you can check with your associated state agency or professional board.

Oklahoma

Oklahoma doesn’t require companies to attain a general business license. However, there are licensing requirements based on industry. The Oklahoma state website provides a drop-down list where you select your industry, then see which licenses or permits you’ll need to secure. Some local jurisdictions require licenses, too. The state recommends reaching out to your municipality to learn more.

Oregon

There’s no statewide business license in Oregon, though businesses in some industries need licenses, permits, or certifications from state agencies or occupational boards. Oregon’s Business Xpress License Directory can help you find the details you need. Enter keywords that describe your business, and the tool can show you a list of potential licenses and permits.

Cities and counties may also require a license. You can use Oregon Blue Book’s list of cities to find contact information for your municipality.

Pennsylvania

Although there’s no general business license in Pennsylvania, you might need a permit or license specific to your industry. You can enter information about your business into Pennsylvania’s Business One-Stop Shop, and the tool can show you a list of the licenses and permits you need. Pennsylvania also offers personalized assistance from business experts through a handful of mentorship programs.

Rhode Island

There’s no general business license requirement to start a business in Rhode Island, but you might need a license from the Department of Business Regulation depending on your industry. The department has a few different divisions, including ones for financial services and building, which covers construction and design. Some types of businesses and professionals will need a license from Rhode Island’s Department of Health. These include businesses handling food and professionals in medical roles. 

You might also need a license from your local government. For example, the city of Providence mandates licenses for restaurants, auto dealerships, and more. Rhode Island’s interactive Business Assistant tool can help you find what you need.

South Carolina

South Carolina doesn’t require a statewide business license. Instead, you’ll secure liquor licenses, professional licenses, and retail licenses from the state, if applicable. South Carolina’s Business Wizard can provide specifics.

Many local governments require business licenses, too. You can reference a list of licensing jurisdictions to see whether or not you’ll need one.

South Dakota

South Dakota doesn’t have a general purpose business license, however, many businesses require a tax license. Professionals in certain industries may also require a license. Municipal governments might also issue licenses. The city of Sioux Falls, for example, requires licenses for selling liquor, running a daycare, operating an alarm business, and many more business scenarios.

Tennessee

When you start a company in Tennessee, you may have to pay a $15 business license fee, depending on your revenue. If your gross receipts add up to more than $3,000 but less than $100,000 annually, you need a minimal activity license. If you gross more than $100,000, you need a standard business license. 

Tennessee also issues licenses for certain professionals operating in the state, such as private security guards, home inspectors, and scrap metal dealers.

Texas

Texas doesn’t have general business licensing requirements. However, many businesses require permits or licenses specific to their business activity. The state provides a list of licenses and permits broken down by business type and profession. If you have questions, you can message Texas’s Business Permit Office.

Utah

In Utah, you must secure a business license from the county, city, or town where your business operates. You can reference the state’s list of counties and towns to find contact information for your municipality. 

You might also need a professional license, depending on your field. Utah provides a list broken down by occupation.

Vermont

Vermont doesn’t have a general state business license requirement, but some businesses and professionals require specific licenses or permits. These include professional licenses for workers in fields including health care, education, and architecture, industry-specific licenses for businesses in regulated fields such as insurance and education, and building and environmental permits. Vermont provides a list of license permit types.

Virginia

While there’s no statewide businesses license in Virginia, most companies require a city or county license. You can find contact information for county officials through the state’s website. Some businesses also require industry licenses. You can find these through the Virginia Department of Professional & Occupational Regulation.

Washington

In Washington, you need a $50 business license if you gross more than $12,000 in annual income, plan to hire employees within the next 90 days, sell a product subject to sales tax, or have to pay special taxes or fees (like cigarette or rental car taxes) to the state’s Department of Revenue. There are a few additional scenarios that require you to secure a license, too. The state website walks you through the process.

You’ll need to renew your license annually if your company requires a city or state endorsement. You need a state endorsement if you work in a regulated field, such as egg handling or cannabis, and you need a city endorsement if your company is physically located in or travels to a specific town. 

Washington’s Business Licensing Wizard can help you work through the state endorsement process. The state’s city endorsement resource provides information on the requirements of different municipalities. Some require local business licenses as well.

West Virginia

There’s no general business license in West Virginia at the state level, but some companies will need occupational, professional, or special licenses depending on their business activities. Accountants, lawyers, general contractors, and amusement park owners, for example, will need one of these licenses.

Most cities and countries in West Virginia also mandate local business licenses. You can use West Virginia’s county clerk directory to find contact information.

Wisconsin

Wisconsin doesn’t have a statewide business license requirement, but some companies need specialized licenses related to their industries. Wisconsin provides a list of state licenses and permits. You might also need to secure a license from your town or county. If you run a grocery store in Madison, for example, you’ll need a license from Dane County’s Department of Public Health.

Wyoming

Wyoming doesn’t have a state-issued business license. Some businesses and individuals will require a license from one of Wyoming’s professional licensing boards. You might need a local business license, too. If you open a barber shop in Cheyenne, for example, you’ll need to secure a specialized license or permit.