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How to get a business license

Forming a company and licensing a business are two different things, and the second one is not issued by the state you formed in. Here is how the pieces fit together.

Contemporary limestone and glass buildingExpert handling. Every step.

Start with what you actually need

Most people arriving at this question need three separate things, and confuse them because all three get called "registering the business".

  • An entity — the LLC or corporation itself, filed with a state
  • Tax registrations — sales tax, withholding, unemployment, filed with a state agency
  • A licence or permit — permission to carry on your particular trade, usually issued by a city or county, sometimes by a state board

Where a licence comes from

There is no single national business licence. What you need depends on what you do and where you do it: a general business or trading licence from the city or county, a professional licence from a state board if you are in a licensed trade, and additional permits for anything involving food, alcohol, childcare, construction or health.

A home-based consultancy in one town may need nothing beyond an entity and a tax registration. The same consultancy across a county line may need a home occupation permit. The rule is local, which is why no filing service can promise a single licence that covers you.

What we file, and what we do not

We are straight about this because the wrong answer wastes your week. We form entities, register trade names, handle state tax registrations, and file the annual reports that keep all of it alive. We do not apply for city trading licences or professional board licences on your behalf.

What we will do is tell you which of the three you are missing before you pay for the wrong one, and get the parts we do file out of your way.

How it works

  1. 1

    Form the entity

    Almost everything else asks for its name and its state file number, so it comes first.

  2. 2

    Get the EIN

    Tax registrations and bank accounts both ask for it.

  3. 3

    Register for state taxes

    Sales tax and withholding, where your trade and your state require it.

  4. 4

    Apply locally for the licence

    City or county, and any board that licenses your profession — this part is yours, and it is quick once the entity exists.

Questions people ask

Do I need a business license if I have an LLC?

Usually yes, and they are not the same thing. The LLC is the legal entity; the licence is permission to carry on your trade in a particular place. Forming an LLC does not license you, and holding a licence does not give you an entity.

How much does a business license cost?

City and county licences commonly run from around $50 to a few hundred dollars a year, and professional licences considerably more. Because they are issued locally there is no national rate — the issuing authority publishes its own schedule.

How long does it take?

A general local licence is often issued within days of applying. Anything inspected — food, alcohol, childcare, construction — takes as long as the inspection queue, which is why it is worth starting the entity and the EIN in parallel rather than in sequence.

Related

Start a filing

Tell us the state and what you need. You will see the state fee and our fee before you pay anything.