Every US business — regardless of size — typically needs at least one business licence or permit. Requirements vary by state, city, and industry. This guide covers the most common licences needed.
- Federal EIN from IRS (free)
- State business registration (Articles of Organization or Incorporation)
- City/county business licence application
- Industry-specific licence if applicable (contractor, food, salon, etc.)
Federal business licences (for regulated industries)
Most businesses do not need a federal licence. Exceptions requiring federal licensing: alcohol (TTB), agriculture/farming (USDA), aviation (FAA), firearms/explosives (ATF), commercial fishing (FWS), radio/TV broadcasting (FCC), investment/financial advice (SEC). Apply through the relevant federal agency.
State business registration and licences
Every state requires a DBA (Doing Business As) registration if using a name different from your legal name, and state-level licenses for professions: real estate (state real estate board), contractor (state contractor board), healthcare (state medical board), legal (state bar association), food service (state health department). Check your state’s Secretary of State website.
City and county business licences
Most cities require a General Business Licence (GBL) — typically $50–400/year from your city clerk’s office. This is separate from zoning permits and occupancy permits. Renew annually. Home-based businesses often need a Home Occupation Permit confirming zoning compliance.
Industry-specific permits
Additional permits by industry: Food service: Health Department permit (annual inspection). Construction: Building permit per project from city/county. Healthcare clinic: State healthcare facility licence. Daycare: State childcare licence. Cosmetology: State board licence per practitioner.
Apply online through your city or state portal
Most states have consolidated business registration portals: California (bizfile.sos.ca.gov), Texas (sos.state.tx.us), New York (businessexpress.ny.gov), Florida (sunbiz.org). Register your business, apply for applicable licences, and track renewal dates centrally.
Frequently Asked Questions
Penalties vary by jurisdiction: fines ($50–$10,000), forced closure, back taxes owed, voided contracts (some states consider contracts void if you were not properly licensed), and personal liability if your LLC protection is challenged.
Yes — even purely online businesses need a business licence in the state where the owner lives. If you sell physical goods, you may also need sales tax permits in states where you have “nexus” (economic presence). Digital services may trigger sales tax obligations in multiple states.