Which licenses can apply?
| Level | Examples | Who needs it |
|---|---|---|
| Federal | Alcohol, firearms, aviation, trucking across state lines, broadcasting, agricultural imports | Only businesses in regulated federal activities |
| State: tax | Sales tax permit or seller's permit, payroll registrations | Sellers of taxable goods or services, and employers |
| State: general | Washington's state business license, issued through its Department of Revenue | Businesses in states that require one |
| State: professional | Contractors, accountants, real estate agents, cosmetologists, health professions | Licensed trades and professions |
| Local | City or county business license or tax certificate, zoning approval, home occupation permit, health and fire permits | Most businesses with a physical location, and many home businesses |
How do you find out what you need?
Describe the activity precisely
What you sell or do, from where, and to whom.
Check your city and county
Their websites or business offices list local licenses, zoning and home business rules.
Check the state
Many states have a business licensing portal listing licenses by industry.
Check federal rules
Only if your activity is federally regulated.
Diary the renewals
Many licenses renew yearly or every two years.
What does an online seller usually need?
- A sales tax permit in each state where you have nexus. See how to get a sales tax permit.
- A local business license where you operate, even from home, in many cities.
- A home occupation permit in some cities, if you store goods or receive customers at home.
- Product-specific permits for food, cosmetics, supplements and other regulated goods.
See seller's permit vs business license.
What about a business run from home?
Many cities still require a business license or tax certificate for a home business, and some also require a home occupation permit. Those permits typically limit customer visits, employees working on site, signs, noise and stored stock. Homeowners' and tenants' associations can have their own rules, and leases often restrict business use. Check all of them before using your home as the business address, especially if goods will be stored or customers will visit.
How do you keep licenses current?
Keep a list of every license and permit, with its issuing agency, number and renewal date, next to your tax deadlines. Many renew each year, some every two years, and local business tax certificates are often based on the prior year's revenue. Update licenses when the business moves, changes its name or adds a new activity, because a license usually covers one address and one kind of work.
What if the owner lives outside the US?
Licensing follows where the business operates, not where the LLC was formed. An LLC run entirely from abroad, selling online with no US location, often needs only sales tax permits in states where it has nexus. One with a US warehouse, office or staff needs the licenses that apply at that location.
What happens without a required license?
Fines, orders to stop trading until licensed, and in some cases contracts that cannot be enforced. Unlicensed professional work can also void insurance. Checking costs little; operating unlicensed can cost far more.
Not sure which licenses you need?
We work out the federal, state and local licenses and tax registrations for your activity and location, and handle the tax ones for you.
Questions people ask
Do I need a business license if I have an LLC?
Often. The LLC filing registers the company but does not license its activities. Most businesses need at least a local license or a tax registration.
Do online businesses need a business license?
Usually a sales tax permit where they have nexus, and in many cities a local business license, even when run from home.
Is a sales tax permit the same as a business license?
No. A sales tax permit lets you collect sales tax. A business license lets you operate in a city, county or state.
Do I need a federal business license?
Only if your activity is federally regulated, such as alcohol, firearms, aviation or interstate trucking.
Sources
Every fee, date and rule on this page was taken from these official and primary sources.
- U.S. Small Business Administration: Apply for licenses and permits
- Washington Department of Revenue
- California CDTFA: Tax Guide for the Marketplace Facilitator Act
Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.
Related guides
More in Starting a US company
This guide is general information. It is not tax or legal advice for your situation.