Most businesses need at least one license or permit. Requirements depend on your location, industry and activities.
Levels of licensing
- Federal licenses for certain activities such as alcohol, firearms and broadcasting.
- State licenses for professions and industries, such as contractors, health care and cosmetology.
- Local business licenses, zoning and occupancy permits.
- Special permits for food service, signage or home-based businesses.
Steps to find out
- Check your city and county business license office.
- Visit your state's business portal or Secretary of State.
- Use the Small Business Administration's licenses and permits tool.
- Ask your industry association.
- Confirm zoning rules before leasing space.
Common requirements
- Sales tax permit if you sell taxable goods.
- Health department permit for food.
- Professional license if you offer regulated services.
- Fire and safety inspections.
- Home occupation permits.
Why it matters
Operating without required licenses can lead to fines, closure and difficulty enforcing contracts. Renew on time and keep copies.
Frequently asked questions
Do online businesses need licenses?
Often yes at the state and local level.
How much do licenses cost?
Fees vary widely.