what licenses do you need to start a business

The licenses and permits you need to start a business depend on: Your business type (e.g., food service vs. freelancing) Your location (country, state/province, city) Regulated activities (like selling alcohol, handling food, etc.) Here’s a step-by-step breakdown of common licenses and how to find out exactly what you need:

Jun 21, 2025 - 16:55
 3

? Common Business Licenses You Might Need

1. Business License / Operating License

  • Most cities or counties require this to legally operate

  • Sometimes called a "trade license" or general business license

? Required for: almost every type of business
? Get it from your city/town or county clerks office


2. Business Name Registration ("Doing Business As" / DBA)

  • Required if youre using a name different from your own legal name or entity name

? Example: Jane Smith operating as Smith Marketing Solutions
? File with your state or county agency


3. Employer Identification Number (EIN)

  • Also called a Tax ID Number

  • Needed if you:

    • Hire employees

    • Form an LLC or Corporation

    • Want to open a business bank account

? Free from the IRS website (U.S.)


4. Sellers Permit / Sales Tax License

  • Required if you sell physical goods or taxable services

  • Lets you collect and report sales tax

? Required in most U.S. states and many countries
? Apply through your states department of revenue or taxation


5. Home Occupation Permit

  • If you're running your business from home, your city might require this

? Common for: freelance, tutoring, online retail, consulting
? Check with your city planning or zoning office


6. Zoning Permits or Land Use Permits

  • If you're operating from a physical location, it must be zoned for your business type

? Especially important for: storefronts, warehouses, manufacturing
? Local zoning board or building department


7. Professional or Occupational Licenses

  • Specific industries may require certification or licensing to operate legally

? Examples:

Industry Required License
Real Estate State real estate license
Cosmetology Cosmetology license
Construction/Contractor Contractor license
Financial Services Investment or insurance licensing
Healthcare Medical or therapy licenses

? Usually from state-level boards or agencies


8. Health or Food Service Permits

  • Required for any business preparing, serving, or storing food

? Applies to: restaurants, food trucks, bakeries, cafes, catering
? Get from your local health department after inspection


9. Alcohol or Tobacco License

  • Highly regulated industriesrequires multiple levels of licensing

? Apply at federal, state, and local levels
? Start with your states alcohol control board


10. Environmental Permits

  • Required if your business affects air, water, or land

? Applies to: auto shops, manufacturers, construction, chemicals
? Check with your states environmental agency


? Where to Check What You Need

For U.S.-based businesses:

For other countries:

  • National or regional business registries or chambers of commerce

  • Industry-specific government agencies

  • Local tax authority or ministry of commerce


? Pro Tips