How to Get a Business License

homebusiness by homebusiness
Last updated: 08/23/2011

Do I Need a Business License?

Generally, businesses are required to get a business license to ensure that they are complying with government regulations.

Licensing for your particular business will depend on what type of business you operate and where you are located. There are federal, state and local licensing requirements that may apply to your business.

You can either apply for your business license through your local government office or use an online service to assist in the process. More about city, county & state business license requirements.

If you want to work directly with your local government office, you can avoid a service fee and complete the application process yourself. Business.gov can provide information for your local area and type of business at their website. You can enter your zip code and business type, and you'll receive information on licensing requirements as well as permits, tax documentation and contact information that is very helpful.

Once you know which licenses and permits you need, you simply fill out the documentation and turn it into your government office along with the license or permit fees. Remember to pay your license renewal fees to avoid paying penalties.

Restaurant Business License

Of course, licensing requirements for a restaurant business will vary by location and the type of restaurant you operate. That said, here is a general idea of licensing requirements you can expect.

  • Business license
  • Alcohol and beverage license
  • Building permit (if you plan to do construction) or zoning permit (if you are developing land for business use)
  • Health permit
  • Occupational permit (often for home-based businesses)
  • Signage permit
  • A sidewalk cafe generally needs a sidewalk cafe permit

There are also employment and insurance requirements, which you can also get information on at the Business.gov website. If you want to get an idea of insurance cost before you speak with an agent, you can get free business insurance quotes online for your particular business in your state online.

If you are interested in starting a catering business or preparing food products at home, also see: Requirements for a Home Business Cooking License

See Also Steps to Starting a Coffee Shop

Beauty Salon Business License

Whether you are operating a hair salon, nail salon or cosmetics business, you'll need to obtain a cosmetology license.

  • Business license
  • Building permit (if you plan to do construction) or zoning permit (if you are developing land for business use)
  • Health permit
  • Occupational permit (often for home-based businesses)
  • Signage permit

Business Licenses for Specialized Service Businesses

Many service businesses require that you have a specific business license in order to perform that service for clients. This is an addition to a regular business license.

The salon business above is a good example of this - in order to perform some type of beauty service, you need to obtain a cosmetology license. A general contractor would need a contractor's license, a day care provider would need a child care license, etc.

On the other hand, some service businesses don't require a specialized license, but may have other regulations. For example, to open a photography business, you don't need a photographer license, but you might need additional permits to occupy a certain space where you run your business.

Since there are a variety of different businesses, and regulations in different areas vary, it's always smart to contact your local government agency to make sure that you're complying with proper requirements.

More on how to get a business license

Retail/Sales License

For most retail and office businesses, the District of Columbia Department of Consumer and Regulatory Affairs states that a general business license is required. If the retail business falls in the food category or offers a specialized service, additional licenses or permits may apply.

If you want to start an online store, Business.gov says to check with your local government office to see if a business license is required in your city or county. Most online merchants work at home, but this does not mean that a business license is not required. Local zoning laws may require you to have a business license or home occupation permit.

Find your local government office contact information using the State-by-State Resource Guide

Import Export License

If you are thinking about starting an import export business, here is some information on licensing and regulations that you may find helpful.

For exporting, a commerce export license is required in certain situations. To determine if you need this license, you want to start by asking 4 questions: (1) What are you exporting? (2) Where are you exporting? (3) Who will receive your item? (4) What will your item be used for? More information here

According to Informed Trade International, certain types of products require a license to import, including alcohol, tobacco, firearms, animals, copyrighted work and food. Each product type is regulated by a different agency. It can be helpful to contact and work with a Customs Broker to assist you, especially if you are new to the field of import-export. They have valuable knowledge and access to systems that can be very helpful to your business.

The NCBFAA (National Customers Brokers & Forwarders Association or America) offers an online directory where you can locate Customs Brokers in your area.

Business Licenses for Mobile Businesses or Kiosks

If you plan to operate your business from a kiosk or as a mobile service, here are some licensing issues you want to consider:

  1. You need to obtain a business license to operate, just as you would a non-mobile business
  2. If you haul a cart similar to a trailer, you must get a license from the Department of Motor Vehicles
  3. If you serve food, you'll need a permit from the Department of Health

Another issue to consider: shopping malls often have carts/kiosks permitted and insured.

State & Federal Licensing Requirements

According to MySmallBusiness.org, these businesses typically require a state license:

  • Accountants
  • Appraisers
  • Auctioneers
  • Barbers
  • Bill Collectors
  • Building Contractors
  • Cosmetologists
  • Private Investigators
  • Private Security Guards
  • Real Estate Agents

Typically, these businesses require a federal license:

  • Broadcasting
  • Drug Manufacturing
  • Grand Transportation
  • Investment Advising
  • Manufacturing Tobacco, Alcohol or Firearms
  • Preparing Meat Products
  • Selling Firearms


Obtaining a business license is just one of the steps entrepreneurs take when starting a business. To view a complete list of steps, check out the free business start-up checklist.

How to Register a Business Name

When you start a company, the legal name of your business is required on government forms, like your applications for an employer tax ID, business licenses, permits, etc. You will also need a business name for important business tasks such as opening a bank account, signing a business contract, etc.

If you are the sole owner of a business, by default, your personal name becomes the legal name of the business. If your business is a partnership, the legal name of your business is name given in your partnership (or the last names of the partners). If your business is an LLC or corporation, the legal name is that which you registered with the state government.

Many sole proprietor businesses decide to register a fictitious business name, or DBA ("Doing Business As"). For example, if you want to name your grocery store "Apples and Oranges" instead of "Tom Smith", you would file a fictitious business name.

Procedures, requirements and fees for filing a business name vary by state. And some states require that you file at the state level, while others at the city or county level, while others don't require filing of a fictitious business name at all. For this reason, you want to check with your local city or county clerk to see what is required for your location.

The process of filing a fictitious business name generally.... continued

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Sue Barrett has worked in the home business industry for 10 years. She has extensive and diverse experience in both online and offline home-based... more »

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