How To Get a Business License in 5 Simple Steps (2025)

This post is for informational purposes only. Requirements can change frequently, so you should do your own research and consult a qualified legal and tax adviser. Businesses outside of the United States will have different steps and requirements.

How you get a business license—and whether you actually need one—depends on where you plan to operate. While it might seem like just another time-consuming task on your long to-do list, applying for a business license can be vitally important. In fact, it may even determine whether you can stay in business.

Business licenses go by various names. You might see them called “licenses,” “permits,” or “registrations.” Often, states and local governments use these terms interchangeably.

Read on to learn how to get a business license and find out if your state requires one.

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. It proves your business complies with local regulations and allows you to conduct commercial activities.

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 license. 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, always need industry licenses to demonstrate compliance with specialized regulations in their field. These are most frequently administered by the state.

• Business operating license. Typically issued by municipalities to ensure adherence to local zoning, safety, and operational considerations. They may also be required for local tax purposes.

• Seller’s permit. Also known as a sales tax permit, this authorizes the collection of sales tax on goods and services and is essential for retail or wholesale businesses. In some states, this is referred to as a license.

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

• DBA (doing business as) registration. This essentially grants a business permission to operate under a name that differs from its legally registered name.

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.

Here are a few scenarios where you might need a business license as an ecommerce business owner:

• You’re selling products subject to sales tax

• You’re selling products that require specific licenses at local, state, or federal levels (like alcohol)

• You’re running significant fulfillment or warehousing operations from your home, which might require a home occupancy permit

If you have a brick-and-mortar store, there may be licensing requirements related to zoning compliance, health and safety standards, and tax obligations. 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.

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 at IRS.gov. 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

• Business name and contact

• An EIN

• Payment of any required fees 

Each state has its own process. Check directly with your local jurisdictions 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. Acquire any necessary industry licenses
6. Renew your business license

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

1. Register your business

Once you’ve determined what your business is, registering it is the first step toward making it official. Here’s an overview of how to register your business:

Choose a business structure

Your business’s structure determines how it’s taxed, as well as your level of personal liability. Registering your business and creating a clear operating agreement (which outlines how your business will be run) provides a solid foundation for regulatory compliance and operational transparency.

Here are the different types of business structures:

• Sole proprietorship: A sole proprietor runs an unincorporated business alone, with essentially no legal distinction between owner and business. This is the default, so you don’t have to file paperwork to establish it.

• 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.” A business with one member is a single-member LLC. If two or more people own interests, it’s a multimember LLC.

• S corp: An S corporation is a business structure that is available to private corporations like LLCs or partnerships. In an S corp, profits pass through to the shareholders, who pay personal income tax on those profits. An S corporation requires fewer than 100 owners and must be governed by a board of directors following corporate bylaws. S corps must submit IRS Form 2553.

• C corp: A C corp, or C corporation, is a legal business structure treated as a separate entity from its owners. A C corp allows for an unlimited number of shareholders. C corps must submit IRS Form 1120.

• 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.

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 federal 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.

Here are industries that many local agencies regulate:

• Auctions

• Construction

• Dry cleaning

• Farming

• Plumbing

• Restaurants

• Retail

• Vending machines

You can find information about required business licenses on your state’s website. Before you apply, consider your business’s projected growth. In Washington, for example, you’ll need a state license if you expect to earn more than $12,000 per year or plan to hire employees.

5. Acquire any necessary industry licenses

Certain professionals—like accountants, hairdressers, lawyers, and electricians—are almost always obliged to obtain professional licenses at the state level. These often involve passing exams that prove you meet certain standards.

Beyond these professional licenses, you might also need an industry license depending on the type of business you’re running. For example, you’ll need a special license to run a pawn shop in Florida or a car wash in California, and no matter which state you’re in, you’ll need some version of a liquor license if you plan to sell alcohol.

Additionally, if your business is based in a state that charges sales tax and you sell goods or services that are eligible for sales tax, you’ll need to register with your state to collect it from your customers.

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.

6. Renew your business license

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

Either way, renewing is important. An expired business license could lead to violations and fines.

Business licensing requirements in each state

1. Alabama
2. Alaska
3. Arizona
4. Arkansas
5. California
6. Colorado
7. Connecticut
8. Delaware
9. Florida
10. Georgia
11. Hawaii
12. Idaho
13. Illinois
14. Indiana
15. Iowa
16. Kansas
17. Kentucky
18. Louisiana
19. Maine
20. Maryland
21. Massachusetts
22. Michigan
23. Minnesota
24. Mississippi
25. Missouri
26. Montana
27. Nebraska
28. Nevada
29. New Hampshire
30. New Jersey
31. New Mexico
32. New York
33. North Carolina
34. North Dakota
35. Ohio
36. Oklahoma
37. Oregon
38. Pennsylvania
39. Rhode Island
40. South Carolina
41. South Dakota
42. Tennessee
43. Texas
44. Utah
45. Vermont
46. Virginia
47. Washington
48. West Virginia
49. Wisconsin
50. Wyoming

State license requirements vary by state and business activity. Below, we outline licenses needed for general operations in each state. 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 must obtain a Business Privilege License from the Alabama Department of Revenue. The cost ranges from $10 to $75, depending on the size of your jurisdiction. The business privilege license must be renewed annually by October 31, or you’ll pay a 15% tax penalty plus interest.

Alaska

Almost all companies in Alaska need a business license from the state. However, fisheries, mining companies, and businesses selling liquor don’t need an Alaska state business license, since they’ll 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.

Alaska offers a senior discount and a disabled veterans discount. Qualifying businesses pay $25 instead of $50.

Arizona

In Arizona, sellers in certain industries must pay a transaction privilege tax (TPT), essentially, a seller-paid sales tax. Businesses must obtain a TPT license through the state’s License Compliance Program. TPT licenses cost $12 per business location. Note that both physical and online retail stores must secure a TPT license.

You might also need regulatory licenses depending on your field, and occupancy licenses depending on your location.

Arkansas

In Arkansas, business license fees range from $50 to more than $1,000 per year, depending on business type. Whether or not you need a license at all will depend on your city and county, so be sure to research the requirements in your specific location.

California

Not all businesses in California need a license at the state level, but some counties and cities do require local licensing. Also, some business types (like car washes, amusement parks, and more) are state-regulated and require licensing from a corresponding board or division. Check the CalGold permit assistance tool for license requirements and fees: You’ll input your county and business type, and the tool will show you the licenses you need.

Colorado

Certain businesses in Colorado require licensing, and costs for state-regulated businesses vary by industry. There may be additional requirements by location, so check with your city hall or county clerk.

A business license in Aurora, for instance, is valid for two years and costs $27, plus an $18 application fee. In Fort Collins, any home-based entrepreneurial business must also register as a home business, which costs $25 and is valid for two years.

Connecticut

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

Delaware

All businesses operating in Delaware must obtain a State of Delaware Business License from the Delaware Division of Revenue. These licenses generally cost $75 for the first year. A 75% discount is available to business owners aged 65 years or older who meet other eligibility requirements. 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.

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 will need a license from the Department of Business & Professional Regulation, and businesses like pawn shops and private investigators will need a license from the Department of Agriculture and Consumer Services.

Depending on where you live, you might also need an occupational license to operate within your county. 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

Not all businesses in Georgia need a license. Whether you need one will depend on your industry. There are a number of state boards that distribute mandatory professional licenses, like the Board of Veterinary Medicine, the Auctioneers Commission, and the Board of Architects and Interior Designers.

You might also need an operating license for your specific location. If you run a solo enterprise that makes less than $100,000 in Marietta, Georgia, for example, you’ll need to obtain an $89 business license. 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 (GET) 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. In Honolulu, for example, you’ll need a license if you sell secondhand goods or firearms.

Idaho

Idaho does not have a statewide business license. However, some municipalities have their own licensing requirements, and you might need special licenses depending on your industry. Idaho offers a Business Wizard tool to help you determine which licenses you’ll need. You’ll input information on what your business does and its structures, and the tool will give you a list of possible license requirements.

Illinois

Illinois doesn’t issue general state business licenses, but some regulated professions require a professional license, like attorneys, physicians, and therapists. There may be local city or county requirements, too. For example, every business operating in Chicago needs a city business license.

Indiana

Indiana does not have a state-level general business license. That said, you’ll need an operational business license if you sell financial services or alcohol or operate in other regulated industries. You might also need a local business license: Some jurisdictions require contractor licenses as well as transient licenses if you’re selling your products outside. To ensure you meet local requirements, check with your local city government.

Iowa

Iowa does not have a statewide general business license. However, you may need an Iowa professional license depending on your industry.

Kansas

Kansas-based businesses don’t need to obtain a general state business license, but you might need a state-sanctioned license depending on your industry. 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. However, certain types of businesses may need one or more special permits or licenses, and many cities and counties require a local business license.

Check with your city and county government to find out what you need, and keep in mind that you might need additional local licenses if you operate in other jurisdictions. For example, if you headquarter your shop in one county but plan to open satellite stores in others, you might need more than one local license.

Louisiana

Louisiana does not have a statewide business license requirement. However, many cities have their own licensing requirements and fees. To find out what you need, use Louisiana’s business license checklist. You’ll input information about your company, and the tool will show you a list of possible licenses you’ll need to secure.

Maine

In Maine, general operating business licenses are managed at the municipal level. That means you’ll need to check with your local town office to obtain your license. In Portland, for example, obtaining your business license will cost you a $45 application fee and a $35 annual renewal fee. 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 an industry-specific permit. Retailers and wholesalers, for example, need a trader’s license. To determine what you need, contact your local clerk or call the Maryland State License Bureau.

Massachusetts

There’s no statewide general business license in Massachusetts, but you might need an occupational license depending on your industry, and you’ll also need to get a sales and use tax certificate if you’re selling products.

Depending on where you’re based, you might also need a city business certificate. 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

Michigan doesn’t have a statewide general business license, but you might need a business license from the state depending on your industry. You’ll also need to secure a Sales Tax License if you run a retail business. You might also need an industry-specific license from your city, so be sure to check your town’s website for details.

Minnesota

Minnesota does not have a statewide general business license, but it does issue 920 state-level licenses based on industry. You can browse Minnesota’s list of 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 requirement, but some local governments and specific industries may require licenses or permits. Businesses might also need to register with the Secretary of State.

Missouri

Missouri doesn’t have a general state business license, but many cities and counties require businesses to obtain a local business license. Specific industries may require permits too. The Secretary of State’s office has forms and information to get your business started.

Montana

The state of Montana doesn’t require a general license, although businesses in certain industries require licensing through the Department of Revenue. All other licenses are distributed by cities and counties, and some cities have general business license requirements. 

Nebraska

There isn’t a general business license requirement in Nebraska, but certain businesses will need to attain a state license depending on their industry (like companies in the alcohol, health care, or agriculture industries, for example).

Nevada

Nevada requires all businesses to secure a state business license. On top of this, all businesses 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 require a general state business license, but companies in certain industries must be licensed. The Department of Revenue Administration has more details.

New Jersey

In New Jersey, all businesses must register for a certificate of formation/authorization. For-profit businesses and foreign nonprofit corporations pay $125, while domestic nonprofit corporations owe a discounted fee of $75.

New Mexico

New Mexico doesn’t have statewide business license stipulations. However, licensing may vary by city. The state’s business portal can help you navigate the different types of licenses and permits.

New York

While businesses don’t have to pay for a state license in New York, many must be licensed at the local level. The New York Business Express website can show you which regulations apply to your business.

North Carolina

North Carolina doesn’t have a single business license covering all state requirements. Some businesses may have several state requirements, while others won’t have any. Entrepreneurs and small business owners can visit the Secretary of State’s website for more information.

North Dakota

North Dakota doesn’t issue state business licenses. However, some businesses may need to register based on industry. The Secretary of State’s office provides information on specific licensing requirements.

Ohio

Businesses are required to register with the Secretary of State to legally conduct business in Ohio. Many businesses and professionals also need special certifications, licenses, and permits. For example, if you sell taxable goods from a fixed location, you’ll need a vendor license ($25). If you host pop-ups or sell at markets, you’ll need a transient vendor license ($25). Both can be obtained from your county auditor.

Oklahoma

Oklahoma doesn’t require a state-issued business license, but there are licensing requirements for some industries. The Oklahoma Business Hub provides more information about which licenses or permits you may need.

Oregon

There’s no state business license in Oregon, though some industries must abide by certain parameters. Some cities and counties also require a license. Oregon’s Business Xpress License Directory can help you find the details you need.

Pennsylvania

Permits and licenses may be required in Pennsylvania depending on the type of business. Pennsylvania’s Business One-Stop Shop provides specifics on which types of businesses are affected.

Rhode Island

To start a business in Rhode Island, most businesses need to register with the Department of State. Depending on your business structure, the cost ranges from $100 to $230.

South Carolina

South Carolina doesn’t require a statewide business license. Licenses, permits, and regulations are managed on a local level. South Carolina’s Business One Stop website provides more specifics.

South Dakota

If you operate a taxable business in South Dakota, a license is required—even if you don’t have a physical location. The Department of Revenue provides specifics on other requirements for a variety of industries.

Tennessee

All new businesses in Tennessee must register with the Department of Revenue and pay a $15 fee. In-state businesses need either a minimal activity license (for businesses grossing more than $3,000 but less than $100,000) or a standard business license (for businesses grossing more than $100,000 annually). 

Texas

Texas doesn’t have general business licensing requirements or fees, but businesses do need to register with the Texas Secretary of State or county clerk’s office. Many businesses require permits based on their business activity.

Utah

After you register your business with Utah’sDivision of Corporations and Commercial Code, you must secure a business license from the county, city, or town where your business operates.

Vermont

Vermont doesn’t have a general state business license requirement, but some businesses or occupations may require licenses or permits. The office of the Secretary of State provides further details on specific industries.

Virginia

Businesses in Virginia can register with Business One Stop for $20, but a business license isn’t required to operate in the state.

Washington

In Washington, you need a license if your business requires city and state endorsements, if you plan to hire employees within 90 days, or if you sell a product or provide a service that collects sales tax. The Department of Revenue provides additional details.

West Virginia

In West Virginia, every individual or business entity is required to register with the West Virginia State Tax Department to obtain a business registration certificate. The WV One Stop Business Portal provides more details.

Wisconsin

Some businesses in Wisconsin need to register with the Department of Revenue. They may also need additional licenses, permits, or registrations, depending on their industry and location.

Wyoming

Wyoming doesn’t have a state-issued business license. The office of the Secretary of State provides resources detailing who to contact and what is required.