How to Get a Business License in Every State

What Is a Business License?

A business license is a certificate provided by a government agency—often a Secretary of State or county office—that can be used to collect taxes and regulate certain professions. You may come across the term “business license” referring to a seller’s permit, tax license, or professional license. It can get confusing, so let’s get into it more by defining each type.

Types of Business Licensing and Permits

There are numerous licenses and permits business owners may need to operate. Business licenses are used to collect taxes and regulate business jurisdictions or professions. Let’s get into each one below!

General Business Licenses

A general business license is issued by a federal, state, or local agency and grants a business the ability to operate within a specific area. It is the main type of business license, and the one this page will focus on. Currently, 29 states require some form of general business license. In some cases, a general business license will also act as your tax license, zoning license, or professional license.

This page focuses on general business licenses, but we provide info about other licenses as well, particularly for states that do not have a general business license requirement.

Federal Business Licenses

A federal business license is a general business license issued by the federal government. Most businesses do not need this license. Only businesses regulated by the following agencies require a federal general business license:

• Securities and Exchange Commission
• Food and Drug Administration
• Federal Communications Commission
• Department of Transportation
• Bureau of Alcohol, Tobacco, Firearms, and Explosives

To see if your business needs a federal general business license, contact the agency that regulates your business.

State Business Licenses

A state business license is one of the most common types of general business licenses issued. They are issued by a state agency, often the Department of Revenue or the state’s business licensing department. In some cases, you will need to get a state general business license before you form your business. There are also other types of licenses your business may need at the state level, like for zoning or specific occupations.

Local Business Licenses

A general business license issued at the local level allows you to operate your business within a particular city or county. They are often issued by the county clerk’s office, but in some cases, you must get them through the sheriff’s office or the local licensing board. To be compliant, you’ll want to confirm the licensing rules in every city and county where you have a physical business location.

What is an Occupational License?

While a general business license applies to all businesses operating within a specific geographic area, an occupational license is for specific professions and industries. In most cases, the companies that need these licenses are skill-based or heavily regulated. Also called professional licenses, occupational licenses are usually issued by the state board for that profession, such as a state bar association or state medical board. For example, in California, pharmacists must register with the California State Board of Pharmacy.

What is a Tax/Seller’s Permit?

A tax permit or seller’s permit is used to help state and local governments collect sales tax. Some states call tax permits business licenses, while others use their business licenses as a way to collect taxes and give companies the right to do business within a specific jurisdiction. Below, we’ll give you some info about how to obtain a tax permit in states that do not require a general business license.

General Business License Requirements in Every State

We cover the general business licensing requirements, including prices and penalties, for all 50 states, plus the District of Columbia and Puerto Rico. Scroll to find your state and learn what you need to know.

Alabama Business License

Alabama businesses need a business privilege license, which is Alabama’s term for a general business license. In Alabama, anyone engaged in business in the state must register with the Alabama Department of Revenue for their business privilege license. To get your business privilege license, you’ll need to apply through the county probate office where your company is located. The Alabama Department of Revenue provides a county probate office directory you can use to locate the address and contact information of your probate. You will need a business privilege license in every county where your business operates and the cost will vary.

Alaska Business License

Alaska businesses, including sole proprietorships, must get an Alaska general business license after getting any required professional or industry licenses. You’ll need to apply through the Alaska Department of Commerce, Community, and Economic Development – Division of Corporations, Business, and Professional Licensing and pay $50. Each year, you’ll need to renew your Alaska business license before December 31st. Operating without a business license incurs a $300 civil fine.

Arizona Business License

Arizona businesses must get a business license on the local level. The Arizona Commerce Authority has compiled a list of city and town offices you can check for their business license laws. The price of your application will vary depending on where you live, your industry, and potentially other factors like company size. Some Arizona business licenses need to be renewed yearly. Penalties vary for not having a business license. For example, in Prescott Valley, late renewals get a 25% penalty fee for any applications sent 14 days after their renewal due date.

Arkansas Business License

Arkansas businesses do not have a state or local general business license you need to apply for, however, there is an Arkansas business sales tax or seller’s permit. You’ll need to apply for your seller’s permit to properly pay your Arkansas taxes through the Arkansas Department of Finance and Administration. While you don’t have to get a general business license, you will need to check with your industry to see if you’ll need to get any occupational licenses.

California Business License

California does not require businesses to get a general business license at the state level. However, all businesses in the state must obtain a seller’s permit for tax purposes, which is often referred to, confusingly, as a business license. In California, you’ll also need to get a tax certificate from the city where your business is located. If your business is located outside city limits, you’ll need to get a certificate from the county. You can use the state’s CalGold resource to look up the licensing requirements for your specific location and business, including occupational or professional licenses.

Colorado Business License

Colorado businesses must get city or county business licenses to operate. In some places, like Fort Collins, your business license is also your sales and use tax permit for collecting local Colorado taxes. The fee for your local Colorado business license ranges depending on your location and other factors, like the size of your company. Some Colorado business licenses need to be renewed every year and others are good for two years. Penalties also vary based on your location.

Connecticut Business License

Connecticut businesses do not need a general business license to operate in the state. But you will need to apply for a sales and use tax permit to properly pay Connecticut taxes. To get your Connecticut tax permit, apply through the Connecticut State Department of Consumer Protection and pay the $100 filing fee. Specialized businesses like cannabis retailers, hypnotists, and home inspectors will need to get professional licenses to legally operate.

Delaware Business License

All Delaware businesses must get a Delaware business license, applied for through the Delaware Division of Revenue’s online Delaware One Stop business registration portal. The fee for the Delaware business license is $75/year for your first business location and $25/year for each additional location. There is no paper application. Your Delaware business license is valid for one to three years, and then needs to be renewed to keep your business in compliance. Penalties for not renewing or obtaining a Delaware business license are a $200 fee on top of the $75 application price.

DC Business License

District of Columbia businesses are required to get a business license called the Basic Business License. You’ll apply for your license after registering your company with the DC Department of Licensing and Consumer Protection. You can only apply online or in person at the DLCP Business License Center. Sole proprietors do not need this business license. Your DC Basic Business License is good for two or four years and costs are based on various factors like number of employees. The penalty for not having a DC business license is a fine of $100 a day for each day you operate without a license.

Florida Business License

Florida businesses are required to get a county or city business license or, as it’s called in Florida, a business tax receipt or Certificate of Use. To get one, you’ll need to contact your local municipality office. The fee for your Florida business tax receipt will depend on your location and other factors determined by your local jurisdiction. The penalty for operating without a Florida business tax receipt varies as well. For example, in Seminole County, there is a 25% penalty placed on top of the back taxes due for the business.

Georgia Business License

Georgia businesses do not have a statewide business license, but instead, you may need to get a Georgia business license on the local level. In most jurisdictions, you will apply for your Georgia general license through the county finance or tax department, like in Fulton County. The price of your application will vary depending on where you live, your industry, and potentially other factors like company size and gross receipts. In some jurisdictions, sole proprietors will also need to apply for a business license.

Hawaii Business License

Hawaii businesses do not need to apply for a general business license with the state. There is a General Excise Tax license that all registered businesses must apply for to collect Hawaii taxes. To get your General Excise Tax license in Hawaii, you’ll register online using Hawaii’s Tax Online or submit Form BB-1. You’ll still want to check the regulatory board of your industry to see if you need a professional license to operate, like accountants that need licensing from the Board of Public Accountancy.

Idaho Business License

Idaho businesses do not have a general business license but do have a Sales and Use tax permit. Applying for your Sales and Use tax permit must be done through the Idaho Department of Labor’s Idaho Business Registration System. Along with your tax permit, you’ll need to check for any professional or industry licenses you will need to operate, like for accountants, doctors or nurses, and lawyers.

Illinois Business License

Illinois businesses do not need to get a general business license. That does not mean you are totally off the hook. You will need to get a tax permit with the confusing name Certificate of Registration or License if you are a sole proprietor, LLC, or corporation. To file your Certificate of Registration or License, you can submit your form online through MyTaxIllinois or mail in the paper application Reg-1 to the Central Registration Division Illinois Department of Revenue.

Indiana Business License

Indiana business owners do not need to get a business license for their company but will need a tax license. To register your business for a tax license or permit, complete form BT-1 from the Indiana Department of Revenue online. It’s important to know that your tax license is different than a business license and is only for collecting Indiana taxes. You’ll also need to check to see if your profession or industry requires any certifications or licenses to operate.

Iowa Business License

Iowa businesses do not need a statewide general business license, but they do need a Sales and Use Tax Permit. To get your Iowa Sales and Use Tax Permit, register online through Iowa’s Department of Revenue’s GovConnectIowa or by paper by filling out and submitting the Iowa Business Tax Permit Registration form. Be sure to check for any professional or occupational licenses your business may need.

Kansas Business License

Kansas businesses are not required to get a general business license to operate within the state. There are several different Kansas tax licenses and permits you may need depending on your business and offerings. To see if you need a specific tax license for your business, check the Kansas Department of Revenue’s list of Common Business Licenses and Permits. You’ll also need to check with your local jurisdiction to see if you need any occupational licenses.

Kentucky Business License

Kentucky businesses do not require a general business license on the state level, but most counties require you to get a business license. To get your Kentucky business license (sometimes called an Occupational Business License), you will need to apply for it through the county-dedicated licensing office. For example, in Breathitt County, you must apply through the county clerk’s office, while in Anderson County, you’ll need to apply through the sheriff’s office. Your Kentucky business license application price varies. The penalties for operating without a business license range as well.

Louisiana Business License

Louisiana businesses do not need a general business license on the state level. But Louisiana is tricky on the local level. Some counties have general business licenses they call occupational licenses that all businesses must get, like in West Monroe and New Orleans. In other counties, however, there are tax licenses instead. The cost for your business license in Louisiana will vary depending on where you’re located and other factors.

Maine Business License

Maine businesses do not need a statewide general business license, but there are local business licenses obtained on the county, city, or town level. In cities like Bangor, you’ll need to apply for your business license directly from the city clerk by filing a paper application. But not all towns require businesses to get a general license, like in Lewiston, where only certain businesses need licensing. Prices for Maine general business licenses vary depending on jurisdiction and industry. Penalties for not having a business license vary based on location.

Maryland Business License

Certain Maryland businesses need an industry-dependent general business license, which is obtained from the Clerk of the Circuit Court in a majority of counties and cities. The application fee for your Maryland business license varies based on your location and other factors like your number of employees and industry. For example, in places like New Carrollton, there is a flat license fee of $110. Individual locales can set their own penalties for businesses operating without a license, so be sure to check your county code.

Massachusetts Business License

Massachusetts businesses don’t need a general business license to operate within the state. You will need to register your business with the Massachusetts Department of Revenue. Both registered entities like LLCs and corporations and sole proprietors (who are not registered with the state) must sign up through MassTaxConnect. Make sure to check your county for any Massachusetts licenses you may need for your profession, industry, or local taxes.

Michigan Business License

Michigan business owners do not need a state general business license to operate but many cities require one, like in Wyoming and Lansing. To get your business license in Michigan, you’ll need to contact your city clerk’s office. The cost of your license will vary based on your jurisdiction. There are penalties for operating without your local Michigan business license, but that will also vary. For example, in the city of Wyoming, operating without a business license is a civil infraction with a $75-$500 fine.

Minnesota Business License

Minnesota business owners do not need to get a general business license for their company. There are, however, local and state occupational licenses you may need based on your industry. You will also need to register your business with the Department of Revenue. To find out what permits and licenses you need in Minnesota, you can use Minnesota Elicensing.

Mississippi Business License

Mississippi businesses do not need general business licenses on either the state or local level. You will have to get a Mississippi tax or occupational license based on your industry and the services you provide. You’ll need to register for these through the Department of Revenue’s TAP portal. You’ll have to contact your county clerk to see what requirements there are for your particular business.

Missouri Business License

Many counties require Missouri businesses, including sole proprietors, to have a business license. To get your Missouri local general business license, you’ll need to apply through your city or county office. The price for your Missouri business license will vary based on where your business operates and other factors, like industry. Any penalties for not having a business license also depend on your jurisdiction.

Montana Business License

Montana businesses may need to get a general business license, depending on where the business is located. Some jurisdictions call their tax license a business license, like in Billings, so check to see if there are additional tax or occupational permits you may need. You’ll apply for your Montana business license through your county clerk’s office. Each county levies its own costs for the license and any penalties for operating without a license.

Nebraska Business License

Nebraska businesses do not need either a state or local general business license to operate. There is a Nebraska tax license you’ll need to apply for through the Department of Revenue. Depending on your industry and the services you provide, you will also need to get additional occupational licenses. To get any Nebraska license or permit, contact your county clerk or use Nebraska’s licensing system.

Nevada Business License

All Nevada businesses must obtain a state business license, including sole proprietorships and even businesses that don’t sell or offer services. To get your Nevada business license, you’ll submit a business license application to the Secretary of State’s office. In Nevada, business licenses cost $200 for all entities except corporations, which pay $500. You’ll need to renew your Nevada business license every year on your filing anniversary. Certain jurisdictions also require a local general business license on top of the state one, like in Las Vegas.

New Hampshire Business License

New Hampshire business owners do not need to get a general business license on either the state or local level. The New Hampshire Secretary of State does, however, issue tax licenses and other occupational permits you may need depending on your business. To get your New Hampshire business tax license, apply through the Department of Revenue Administration. Your local jurisdiction may also require you to get a tax or occupational license, so check with your county clerk’s office.

New Jersey Business License

Some counties and cities in New Jersey businesses to get a general business license or as some places call it, a Mercantile License, like in Eatontown. You will need to check with your county clerk’s office to see if your business needs a license to operate. The fee for your New Jersey business license will vary based on your jurisdiction. The penalty for not having a New Jersey business license varies as well.

New Mexico Business License

New Mexico businesses in certain counties, towns, and cities need a local business license issued by their county clerk. The prices and penalties for operating without a business license in New Mexico vary based on your location and potentially other factors, like industry.

New York Business License

While there’s no general New York business license on the state level, many cities and counties require New York businesses to get a general business license. The fee for your New York business license is based on your location and sometimes even your industry. Note that other local business licenses may be required, as well. Contact your county clerk or municipality office to learn what licenses your business needs. Be mindful of any penalties for not renewing or obtaining a business license.

North Carolina Business License

North Carolina businesses do not need any type of general business license at the state or local level. There is a Privilege License Tax that all businesses selling goods or services must get to collect and pay North Carolina taxes. To get your North Carolina Privilege License Tax, you’ll need to submit Form B-202A to the Department of Revenue. Be sure to check for any occupational and other tax permits your business may need.

North Dakota Business License

North Dakota businesses have no general business license they need to get to operate in the state. At the local level, some towns and cities, like Williston, have you register your business for an occupational license sometimes called a business license. To apply for any North Dakota licenses or permits, you’ll need to contact the departments that oversee your industry and locale.

Ohio Business License

Ohio business owners do not need to get a general business license for their company. However, businesses that sell goods must get a vendor tax license for each physical business location. Some Ohio towns and cities also require you to get a zoning license for opening up a physical location, so be sure to check with your county clerk’s office.

Oklahoma Business License

Oklahoma business owners do not need a general business license for their company, but there are professional and industry licenses required. You will also need to check at both the local and state levels for what other licenses or permits you’ll need to operate. For example, you’ll need to get an Oklahoma Sales Tax Permit from the Tax Commission to collect and pay taxes.

Oregon Business License

Oregon businesses may need a general business license on the local level. Not every city or county requires it, though. You’ll need to contact your municipal office and see what licenses your business may need. The price will vary based on your location and potentially other factors, like industry. In some places, you’ll also need to renew your license each year.

Pennsylvania Business License

Pennsylvania businesses do not need a general business license on the state or local level. Pennsylvania does, however, have a privilege tax license that some counties call a business license privilege tax or just a business license. You will also need to get a Sales/Use tax license from the Department of Revenue. Make sure to also check for any occupational licenses you may need to operate.

Puerto Rico Business License

All Puerto Rico businesses and sole proprietorships must register with the Puerto Rico Secretary of the Treasury to obtain a general business license called a merchant registration certification. You must submit application Form AS 2914.1 30 days before operating your business. The penalty for not obtaining a Puerto Rico business license is a $500 fine and the price for obtaining a license will vary.

Rhode Island Business License

Rhode Island businesses do not need to get a state general business license. Some towns, like Providence and Westerly, do require businesses to get a local general business license. A majority of towns do not require this, so you’ll need to check with your county clerk’s office. The cost and penalties for not having a business license on the local level vary. You will also need to register with the Rhode Island Division of Taxation to collect and pay Rhode Island taxes.

South Carolina Business License

South Carolina business owners do not need a state business license, but you will need a local business license in every county where your business is located. Not every county requires a business license, however. To get your local general business license in South Carolina, you’ll need to apply with the county clerk where your business is located. The cost for your business license is based on your business’s location. You’ll need to check your local office for penalties, renewal frequencies, and any other licenses your business may need.

South Dakota Business License

South Dakota businesses do not need to get a state general business license. There are a small number of towns, like Deadwood, that do require businesses to get a local general business license. Depending on your offerings, occupational licenses may be required as well. You’ll also need to check for any South Dakota tax permits or licenses you’ll need on both the state and local levels.

Tennessee Business License

Tennessee businesses do not need a general business license but do need a tax license, which is confusingly called a business license or a business tax license. The business tax license is used to collect and pay Tennessee taxes, and not every business needs one. Only businesses in the state that make more than $3,000 and less than $100,000 must get a tax license from the Department of Revenue. To get a Tennessee tax license, you’ll apply online through the TNTAP portal.

Texas Business License

Texas business owners do not need to get a business license for their company, but there are industry, zoning, and other licenses you’ll need to get on both the local and state level. For example, you’ll need a Texas Sales Tax Permit in order to pay and collect state taxes.

Utah Business License

Utah businesses only need a general business license on the county level. Your business license fee will vary based on your location and other factors, like industry or number of employees. You’ll need to contact your county clerk’s office to see what fees and penalties are levied. Utah has a helpful list of all the counties and contact info for business licenses.

Vermont Business License

Vermont businesses do not need to get a state general business license. Some towns and cities do require businesses to get a general business license on the local level. Be careful, though, because some cities like Rutland have a general business license but only for certain professions. Most businesses will also need to register with the Department of Taxes to collect and pay Vermont taxes.

Virginia Business License

Virginia business owners do not need to get a state general business license for their company. It’s important to check with your county clerk to see what other permits or licenses you may need. In some counties like Fairfax, your general business license acts as both your business license and your professional/occupational license. The cost for your Virginia business license varies based on your location.

Washington Business License

Washington businesses, including sole proprietors, are required to get a general business license from the state. LLCs and corporations apply for one after registering with the state. To get your Washington state business license, you’ll register online with the Department of Revenue or submit Form 700 028 to the Business Licensing Service. Your Washington general business license costs between $10 and $50 and needs to be renewed every year.

West Virginia Business License

West Virginia business owners do not need to get a state general business license, but they do need to get a statewide tax license called the business registration certificate. To get your tax license, register online or by filing form BUS-APP. Check with your county clerk’s office to determine what licenses you’ll need on the local level.

Wisconsin Business License

Wisconsin businesses do not need a general business license but do need to register with the state to collect Wisconsin taxes. All businesses, including sole proprietors, need to register with the Department of Revenue online through My Tax Account. Some towns and cities do require businesses to get general business licenses, like in Pleasant Prairie and Lake Geneva. But this is not common, so contact your county clerk’s office for any tax, business, or occupational licenses needed.

Wyoming Business License

Wyoming business owners do not need a general business license on the local or state level. You will need to get a tax license from the Wyoming Department of Revenue based on your industry and services offered. There are some towns and cities that have tax licenses confusingly called occupational tax licenses or business licenses, like Rock Springs. Despite the title of these local licenses, you will also have to get any additional occupational or professional licenses on both the state and local levels.