Business licenses and permits after forming an LLC

Owners often assume the LLC filing is their business license. It is not. Licenses come from different agencies at federal, state and local level, depending on the activity and the place. This guide shows how to work out which apply to you.

By Hamza Fida, Chartered Accountant. Reviewed by Awais Jameel, Chartered Accountant. Checked against official sources on . 3 minute read.

Short answer

Yes, often. Forming an LLC registers the company but does not license its activities. Depending on what you do and where, you may need a city or county business license, a state license such as a sales tax permit or Washington's state business license, a professional license, and a federal license only for regulated activities such as alcohol, firearms or transport.

At a glance

LLC filing
Registers the company, does not license it
Local
City or county business license, zoning, home business permit
State
Sales tax permit, professional licenses, some general licenses
Federal
Only for regulated activities
Online sellers
Usually a sales tax permit and a local license
Where to start
Your city or county, and the state's licensing portal
Business licenses and permits after forming an LLCSteps: 1. Describe the activity precisely; 2. Check your city and county; 3. Check the state; 4. Check federal rules; 5. Diary the renewals.THE PROCESS AT A GLANCEBusiness licenses and permits after forming an LLC1Describe theactivitypreciselyWhat you sell or do,from where, and to whom2Check your cityand countyTheir websites orbusiness offices listlocal licenses, zoningand home business rules3Check the stateMany states have abusiness licensingportal listing licensesby industry4Check federalrulesOnly if your activityis federally regulated5Diary therenewalsMany licenses renewyearly or every twoyearsChecked against official sourcesTax BakersBusiness licenses and permits after forming an LLCSteps: 1. Describe the activity precisely; 2. Check your city and county; 3. Check the state; 4. Check federal rules; 5. Diary the renewals.THE PROCESS AT A GLANCEBusiness licenses and permitsafter forming an LLC1Describe the activity preciselyWhat you sell or do, from where, and to whom2Check your city and countyTheir websites or business offices listlocal licenses, zoning and home businessrules3Check the stateMany states have a business licensing portallisting licenses by industry4Check federal rulesOnly if your activity is federally regulated5Diary the renewalsMany licenses renew yearly or every twoyearsChecked against official sourcesTax Bakers
The process at a glance: 1. Describe the activity precisely; 2. Check your city and county; 3. Check the state; 4. Check federal rules; 5. Diary the renewals.

Which licenses can apply?

LevelExamplesWho needs it
FederalAlcohol, firearms, aviation, trucking across state lines, broadcasting, agricultural importsOnly businesses in regulated federal activities
State: taxSales tax permit or seller's permit, payroll registrationsSellers of taxable goods or services, and employers
State: generalWashington's state business license, issued through its Department of RevenueBusinesses in states that require one
State: professionalContractors, accountants, real estate agents, cosmetologists, health professionsLicensed trades and professions
LocalCity or county business license or tax certificate, zoning approval, home occupation permit, health and fire permitsMost businesses with a physical location, and many home businesses

How do you find out what you need?

  1. Describe the activity precisely

    What you sell or do, from where, and to whom.

  2. Check your city and county

    Their websites or business offices list local licenses, zoning and home business rules.

  3. Check the state

    Many states have a business licensing portal listing licenses by industry.

  4. Check federal rules

    Only if your activity is federally regulated.

  5. 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.

  1. U.S. Small Business Administration: Apply for licenses and permits
  2. Washington Department of Revenue
  3. 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.

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This guide is general information. It is not tax or legal advice for your situation.