How to Get a Business License
One license is almost never enough. Most new businesses need a stack of them: one from the city, one from the state, one for the industry, plus the tax registrations that come with collecting money. This guide lays out the four types, the order to get them, and how to figure out exactly which ones apply to you.
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Check my licensesThe four types of license
Almost every license a new small business needs falls into one of these four buckets. Most businesses end up touching all four.
General business license
The baseline operating license. Most cities and counties require one, and a handful of states do too. If you operate in more than one city or county, you usually need one in each.
State vs local licenses, explainedIndustry or occupational license
If your work is regulated (trades, food service, personal care, healthcare, finance), you also need a state-level license for the work itself, usually with education or exam requirements.
Licenses by industryHealth, safety, and operational permits
If you run a physical space that touches the public, expect permits beyond the general license: food, building and occupancy, fire, health inspections, signage, and environmental.
What you need to start a businessTax and regulatory registrations
Not licenses by name, but you cannot legally collect revenue without them: an EIN, state tax registration, a sales tax permit, and unemployment and workers' comp if you have employees.
Do I even need a license?What you need before you can apply
Four things have to be in place first. Without them, applications stall.
A registered business entity
Sole proprietorship, LLC, S-corp, or C-corp, registered with your state. This is the legal name licenses are issued to.
An EIN from the IRS
Free and usually instant online. Nearly every license application asks for it.
Your NAICS code
The six-digit industry code that applications and grant programs use to classify you.
A registered business address
Some states require a physical address, not a PO box. If you are home-based, check local zoning first.
The order to get them
Start at the top. Each step depends on the one before it, so working through the list in order is the fastest way to legally open. For exactly what each application asks and how long it takes, see How to Apply for a Small Business License.
- 1Choose and register your business entity with the state.
- 2Get your EIN from the IRS (free, usually instant online).
- 3Look up your NAICS code.
- 4Apply for your state-level general license, if your state requires one.
- 5Apply for your city or county business license.
- 6Apply for any industry-specific occupational license you need.
- 7Get your sales tax permit if you will sell taxable goods or services.
- 8Apply for health, fire, or building permits before you open a physical location.
- 9Set up unemployment and workers' comp if you will have employees.
- 10File any federal licenses (alcohol, firearms, transportation, and the like). Most businesses do not need these.
How to figure out what applies to you
Generic checklists only get you so far. The specific licenses you need depend on three things: your industry, your state, and your city. Four sources clear it up fast:
- Your state business portal. Most have a questionnaire that maps requirements to a few details about your business.
- Your city or county clerk. The most accurate source for local licensing. A five-minute call often beats searching their website.
- Your state licensing board. The authority for occupational licenses. Search “[your state] [your profession] licensing board.”
- A local SBDC. Free, SBA-funded consulting offices in every state that will map your specific requirements for you.
Go deeper
Each part of the licensing picture, walked through in full.
Frequently asked questions
How do I get a business license?
Do I need a business license to start a business?
What licenses and permits do I need to start a small business?
How much does a business license cost?
Do I need a business license in every state where I operate?
How long does it take to get a business license?
Keep up after you are licensed
Licensing rules change. Cities add permit categories, states update professional requirements, and new regulations create obligations that did not exist when you started. Bizmoon watches federal and state changes and tells you, in plain English, when one affects your business, with the deadline attached.
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