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Your License Checklist
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⚠️ Disclaimer: This tool provides general guidance based on common licensing requirements. Specific requirements vary significantly by state, city, county, and industry. Always verify with your local city/county clerk, state licensing board, and a business attorney before operating. Requirements change frequently. This is not legal or compliance advice.
Frequently Asked Questions
Technically no, but the practical risk varies. High-risk: operating a food business, childcare facility, or professional service without required licenses carries serious penalties. Lower-risk: a solo freelancer sending invoices before filing a DBA is common but still technically a violation. Best practice: get your general business license and EIN first (both fast and cheap), then pursue industry-specific licenses. Don't collect significant revenue before you're properly licensed.
An LLC (Limited Liability Company) is a legal structure that protects your personal assets from business liabilities. A business license is government permission to operate your specific type of business in your location. You can have one without the other — but you should have both. An LLC without a business license means you're legally structured but not authorized to operate. A business license without an LLC means you're authorized to operate but exposed to personal liability.
Yes, in most jurisdictions. Even if your business operates entirely online, you're typically required to have a general business license in the city/county where you live. You may also need a home occupation permit and sales tax permits in states where you have customers (nexus rules). The good news: online businesses rarely need physical location permits, health inspections, or zoning approvals — so your licensing burden is usually minimal.
Best sources: (1) Your city or county clerk's office website — search "[City] business license requirements." (2) SBA.gov's Business License & Permit search tool. (3) Your state's secretary of state website. (4) NAICS code lookups for industry-specific requirements. (5) Local SCORE chapter or Small Business Development Center (SBDC) — free mentoring on licensing. Many jurisdictions now have "business one-stop shops" online that aggregate all requirements.
It depends on location and business type. Most US cities and counties require a general business license ($15-$100/year) for any business activity, including freelance work done from home. Some states have additional requirements. Selling products typically requires a sales tax permit. Service businesses (consulting, writing, design) generally have fewer requirements than product businesses. Check your city, county, and state government websites for the specific requirements in your jurisdiction -- penalties for operating unlicensed vary but can include fines and back-tax liability.
A business license is a government permission to operate -- it does not change your legal structure or liability exposure. An LLC (Limited Liability Company) is a legal entity structure that separates your personal assets from business liability. You can have one without the other, but most serious businesses have both: an LLC for liability protection, and a business license to legally operate. Creating an LLC does not automatically give you any required operating licenses -- and having a business license does not give you liability protection.
Start with your state government website (usually SOS.state or BusinessPortal.state). The SBA (sba.gov) has a license lookup tool organized by state and business type. Your city or county clerk office handles local licenses. For specialized industries (food, childcare, healthcare, financial services, real estate), check the relevant state regulatory board. Many states now have a single online portal that consolidates license requirements across agencies -- search "[your state] business license requirements" to find it.