How to get a business license
There's no single US business license. What you need depends on what you do and where you do it, and it can come from your city, county, state or a federal agency. Start with your city or county and your state's business site, because the SBA says most small businesses need some mix of licenses and permits.
Updated November 1, 2026
An LLC isn't a license
Forming an LLC creates the company. A license gives it permission to do something in a place. You usually need both, and they come from different offices. Do them in order: form the company, get your EIN, then apply for licenses in the company's name. Washington says an LLC should file with the Secretary of State before it applies for a business license.
City and county
Local rules are often where this starts. The SBA says your county or city may require licenses and permits, and lists commonly regulated activities such as auctions, construction, dry cleaning, farming, plumbing, restaurants, retail and vending machines. Call or check the website of your city clerk or county office. Ask about zoning too, especially if you work from home.
State
State rules differ widely. Alaska requires a state license before doing business there, at $50 a year. Washington handles business licenses through its Department of Revenue, with city and state endorsements added to one application. Texas says it requires no general business license, though specific activities can still need one.
The SBA says to start with your Secretary of State's website. Trades such as contracting and cosmetology usually go through a state board. If you sell taxable goods, you'll probably need to register for sales tax as well.
Federal
A federal license applies only to certain activities. The SBA lists examples including agriculture imports, alcohol, aviation, firearms and maritime transport, along with the agency for each. If your work touches one of these, go to that agency directly. Local rules may still apply: alcohol sales, for example, can also involve a local beverage control board.
How to work out what you need
Write down exactly what you sell and where you do it. Then check these in order.
Your city or county for a local license and zoning.
Your state's business site for general licenses, sales tax and trade boards.
The SBA's federal list.
Ask others in your trade what inspections or permits they had to get. Fees depend on the activity and the agency, and the SBA notes that some licenses expire and need renewing, so put those dates on your calendar.
Questions
Does an LLC need a business license?
Often yes, depending on your city, state and type of work. Forming the LLC doesn't give you a license.
Do I need a business license for an online business?
It depends. Some cities and states license businesses by where you operate, even from home. Check with your city and state.
How much does a business license cost?
The SBA says fees depend on the business activity and issuing agency. Alaska's state license is $50 a year. Local fees and trade licenses vary widely.
Is an EIN the same as a business license?
No. An EIN is a federal tax ID from the IRS. It gives you no permission to operate.
Do business licenses expire?
Some do. The SBA warns that some licenses and permits expire after a set period, so check the renewal date on each one.
$0 + state and processing fees. Takes seconds.