How to Get a Business License

To get a business license in the US, you usually apply to more than one office. The country has no single license that covers everything. Your city or county, your state and sometimes a federal agency each decide whether you may operate. State approval of your LLC only shows that the company exists.

The SBA (US Small Business Administration) says requirements and fees depend on your activity and location, and on government rules. In practice you check three levels:

• your city or county
• your state
• the federal government, for activities a federal agency regulates

Tax registrations such as a seller's permit are part of the same check. Forming an LLC or a corporation doesn't replace any of them. The examples in this article come from five states, and we checked the figures on official websites in October 2026.

The first search: one business license, many names

So you start searching, and the names get confusing fast. People use "business license" for several different documents, and the names change from place to place. Most of them fall into four groups. A business may need documents from several groups at once.

A local license is often tied to a local tax. BTRC stands for Business Tax Registration Certificate. A seller's permit is also called a sales tax permit, and it covers goods or taxable services. Industry licenses can come from a federal agency, a state board or a local office.

Working out who issues your business license

Next you try to figure out who is actually in charge. Those documents come from three levels of government, and the SBA describes the structure this way. If a federal agency regulates your activity, you need a federal license. States regulate a broader range of activities than the federal government. And your county or city may require its own license as well.

City and county: the level owners miss

Your first stop is close to home. It's also the level owners miss most often, because it has nothing to do with forming a company. Local offices rarely use the word "license". They issue a "business tax receipt" or a "business tax registration certificate" instead. The rules vary a great deal from place to place.

If you work in Los Angeles, every company doing business in the city needs a BTRC. Most new businesses pay nothing for the first two years. Businesses with less than $100,000 in yearly gross receipts may be exempt. But they have to renew on time every year to keep the exemption.

In Florida, counties and cities issue local business tax receipts. A receipt goes on sale on July 1 and is due on or before September 30. It expires on September 30 of the following year.

Broward County treats its receipt as the county license. It requires one from one-person and home-based businesses too. You need a separate receipt for each location and each business category. Broward's base fees run from $27 to $150, and city rules and zoning apply on top. Some fees are priced per unit: per employee, per seat or per machine.

The state: a different system everywhere

Then you look at your state, and you find that states handle licensing in very different ways. The SBA suggests checking these in order:

1. your Secretary of State's website (the state office that registers companies)
2. the state tax agency
3. any professional board for your trade

Nevada has a general State Business License with a $200 fee. Washington issues a state business license through its Department of Revenue. The same application can include "endorsements". These are extra licenses for particular activities or places, issued at the city, county and state level.

The Texas Comptroller's page on permits lists the sales and use tax permit. It doesn't mention a general state business license. California requires a seller's permit from anyone who sells or leases goods. And cities such as Los Angeles add their own registration.

If you work in a trade, a state board may need to license you as well. The SBA lists these among the activities that states and localities regulate:

1. auctions
2. construction
3. dry cleaning
4. farming
5. plumbing
6. restaurants
7. retail
8. vending machines

Federal: only for regulated activities

The federal level is the one most owners can skip. You need a federal license only when a federal agency regulates the activity. The SBA lists these federally regulated activities:

BSEE is the Bureau of Safety and Environmental Enforcement. If your activity isn't on this list, the federal level doesn't apply to you. Your work is then at the state and local level.

Matching the rules to your business

Now you hold your own business up against those rules. Which levels apply depends on your activity and location. Most businesses need something from at least one level, and a few situations come up again and again.

Your LLC is a registration with the state. You still have to check the city, the county and the industry rules. The differences between structures are covered in Choosing a Business Structure: LLC, Corporation and DBA.

Working from home or working alone doesn't exempt a business automatically. Broward County, for example, requires a receipt from both home-based and one-person businesses.

If you sell goods, you usually need a tax registration too. In California, anyone who sells or leases tangible goods needs a seller's permit. That applies to individuals and corporations, and equally to partnerships and LLCs.

In Texas, you need a sales and use tax permit to sell or lease goods or taxable services. Out-of-state sellers need it once their Texas revenue reaches $500,000 in 12 months.

Washington lists its own triggers for registering with the Department of Revenue. Among them:

• using a name other than your full legal name (see What Does DBA Mean? DBA and Trade Names Explained)
• planning to hire employees within 90 days
• collecting sales tax
• needing an endorsement
• owing taxes or fees to the Department
• buying or processing specialty wood products
• meeting the state's nexus (business presence) reporting thresholds
• having gross income of $12,000 or more per year

A regulated industry adds its own layer. That's the state board for the profession and, where it applies, the federal list above.

Making the calls: finding your exact requirements

Once you know which situations fit your business, you go looking for the exact rules. Each level keeps its own requirements, so the work is checking every office that applies to your activity and location.

On your city and county websites, search for these terms:

• "business tax receipt"
• "business tax registration"
• "business license"

Ask about zoning as well, especially if you work from home.

At the state level, the SBA suggests the Secretary of State's website first. Then check the state tax agency for a seller's or sales tax permit. After that, check the board for your profession. Federal agencies matter only if your activity is on the federal list.

If you have more than one location, each one needs separate attention. In California and in Broward County, every place of business needs its own permit or receipt.

Finally, write down when each license expires and what renewal costs. The SBA notes that some licenses expire after a set period. It also says renewing is often easier than applying again.

Business license fees: the first costs and the first wait

Your next question is the cost. The SBA gives no national price, because licensing fees are set place by place. The table shows verified examples.

In California, the deposit depends on business type and expected taxable sales. A temporary California permit is valid for up to 90 days. In Nevada, the list fee is $150 for LLCs and similar entities, and $200 for an LLLP. Some Broward fees are priced per unit, as shown above.

In these examples, a single license costs anywhere from nothing to $200, depending on the place and the business. A company that needs several licenses or works in several locations pays for each one.

Then there's the wait, which may push back your first day of work. Washington publishes clear figures. An online application takes about 10 business days. City or state endorsements add 2 to 3 weeks, and a mail application can take up to six weeks. Other states and cities set their own times.

A year later: renewals and late penalties

Once the license arrives, many owners file it away and forget about it. But the fee often isn't a one-time payment. Many licenses have to be renewed, and a missed date adds penalties.

In Florida, local business tax receipts are due on or before September 30 each year. If that day falls on a weekend or holiday, the due date moves to the next working day. A late receipt costs 10% extra for October plus 5% for each later month. The total is capped at 25% of the tax.

We worked out an example ourselves from that rule. Say your Broward receipt carries a $150 tax. The penalty depends on the month you pay:

1. October: $15
2. November: $22.50
3. December: $30
4. January onward: $37.50, the cap

In Nevada, the State Business License renewal fee is $200. The statute (2021 text) sets a $100 late penalty. The state sends a notice 90 days before the due date. Los Angeles sends a renewal notice each December.

How licensing differs from state to state

The picture looks different depending on where you formed. California issues seller's permits through the CDTFA (California Department of Tax and Fee Administration). They're free, one for each place of business. Cities add their own registration, such as the BTRC in Los Angeles.

Florida relies on local business tax receipts from counties and, in some places, cities. They're due September 30, with penalties of up to 25%.

Nevada has a general State Business License for $200, and LLCs also pay a $150 annual list fee. Its exemptions cover only governmental entities, certain insurers and 501(c) tax-exempt LLCs. Those LLCs still pay the annual list fee.

Washington handles everything through one business license application with the Department of Revenue. It can include city and state endorsements. Online it takes about 10 business days.

Texas has no general state business license on the Comptroller's page. You need a free sales and use tax permit to sell goods or taxable services. Cities and counties set their own rules.

When you need to check someone else's license

At some point you may want to check the license of a contractor or a supplier you work with. The same offices that issue licenses also let you look one up. A license lookup works through the office that issued the license:

• the city or county tax office for a local receipt
• the state tax agency for a seller's permit
• the state board for a professional license

Each level keeps its own records. So one search rarely shows every license a business holds.

The mistakes that catch new owners

Looking back at the whole process, the usual mistakes stand out:

• treating the LLC registration as the license, though the two are separate
• overlooking the city or county, which plays no part in forming a company
• using one license for several locations, when California and Broward County need one per place
• forgetting that Broward also needs one receipt per business category
• confusing a seller's permit with a business license, since the permit covers only sales tax
• missing a renewal, which adds up to 25% in Florida and can cost an exemption in Los Angeles
• assuming home-based or one-person businesses are exempt, when Broward County requires a receipt from both

Doing it yourself or getting help

Whether you handle all this yourself depends on how many offices you deal with. For many small businesses, licensing comes down to a few forms and fees you can manage on your own. Most of the effort goes into research. You have to find every office that applies to your activity and location.

That research takes longer if you have several locations, a regulated activity or sales in several states. In those cases some owners bring in a lawyer, an accountant or a filing service.

What to do before your first job

Start with your city or county this week, since forming the LLC doesn't touch that level. Then check your state, including tax registrations such as a seller's permit. Look at federal rules only if a federal agency regulates your activity.

When each license arrives, put its renewal date in your calendar, because late penalties add up. If your activity is regulated or you work in several places, that's when outside help saves time. Licenses are one item among several that come up after formation, and the rest are collected in New Business Checklist: What to Do After Forming Your LLC.

A license makes the business legal, and a customer who searches for it still needs something to find. In our work with new companies, we cover that side with a verified Google profile and a landing page.