How to Get a Business License

To get a business license in the US, list exactly what your business does and every place it does it, then check each level of government in turn: federal agencies for a short list of regulated activities, then your state, county and city. Apply to the agency that issues each license, keep copies, and put every renewal date in a calendar. In the US, the SBA's guide to launching a business (checked October 31, 2026) says: "The requirements and fees vary based on your business activities, location, and government rules."

The SBA's launch guide (In the US, checked October 31, 2026) lists "Apply for licenses and permits" as its own step, separate from choosing a structure and registering. For those earlier steps, read how to register a business and how to choose a business structure; the EIN guide covers the federal tax ID. All SBA wording on this page is quoted exactly from SBA.gov (In the US, checked October 31, 2026).

Write down what you do and where

Licensing depends on activity and location, so start with two lists:

• Activities: every kind of work you'll do or product you'll sell, in plain words. Write kitchen remodeling, not home services.
• Locations: your business address, a home office if you have one, and every city or county where you'll do jobs or sell.

Keep the lists; you'll use them for every call and application below.

Check federal licenses

In the US, the SBA's guide (checked October 31, 2026) says: "Business activities regulated by a federal agency will need a federal license or permit." Its table of federally regulated activities includes "Agriculture", "Alcoholic beverages", "Aviation", "Firearms, ammunition, and explosives", "Commercial fisheries", "Radio and television broadcasting" and "Transportation and logistics", each with the agency that issues the license. On cost, it says: "Requirements and fees depend on your business activity and the issuing agency."

If one of your activities appears in that table, contact the agency it names. If you're not sure whether an activity counts, ask that agency.

Check state, county and city licenses

In the US, the SBA's guide (checked October 31, 2026) says: "States tend to regulate a broader range of activities than the federal government." It adds: "You may also need licenses from your county or city." The activities it says are "commonly regulated at the local level" include "Construction", "Plumbing", "Restaurants" and "Retail".

For where to start, the same guide (In the US, checked October 31, 2026) says: "Visit your Secretary of State’s website to find out which permits and licenses you need." It also says: "You’ll have to research your own state, county, and city regulations." In practice:

1. Search your state's business portal or Secretary of State site for your activity.
2. Call or email the city or county clerk where your business is based, and ask which licenses and permits apply to your activities at your address.
3. If you work in other cities or counties, ask each of them too.
4. Write down each answer with the date and the name of the office, so you can show what you were told.

Apply, then keep records

Ask each agency for its application and fee. Before you apply, have your business name and address, your business structure and any registration number, your tax ID, and a short description of your activities ready. When a license arrives, save a copy in one folder with its number, issuing agency and expiry date.

Keep a renewal calendar

In the US, the SBA's guide (checked October 31, 2026) says: "Some licenses and permits expire after a set period of time." It adds that "it’s often easier to renew than it is to apply for a new one." Put each expiry date in your calendar with a reminder a month or two before, and note any continuing education or inspection the renewal needs.

Worked example: a first-year license budget

Sample figures, for illustration only; real fees depend on your activity and location. A new handyman business finds three requirements:

• City business license: $75.00
• State trade registration: $150.00
• County permit for one job type: $50.00

Total: $75.00 + $150.00 + $50.00 = $275.00 for the year. Setting aside $275.00 ÷ 12 = $22.92 a month means the renewals are covered when they come round. Use your own figures; these are only an illustration.

Where Billed fits

License and permit fees are business costs to record. Billed's expenses page says: "Record what your business spends, keep each receipt with its expense, and turn your spending into expense reports you can export for your accountant." It also says: "Give every expense a category so your spending is already sorted when you file taxes or hand the year to your accountant."

Mistakes to avoid

• Assuming that forming an LLC or registering a name also licenses the activity.
• Checking only your home city when you work in several.
• Describing your activities too vaguely to get a clear answer.
• Not writing down who told you what, and when.
• Letting a license lapse because the renewal date wasn't in a calendar.

When this guide isn't for you

If your work needs a professional license, such as in health care, law, accounting, engineering or a licensed trade, the licensing board for your profession sets the rules; contact it directly. If you're unsure whether an activity needs a license, ask the issuing agency or a lawyer; this page doesn't decide that for you.

Related Articles

• How to Register a Business
• How to Choose a Business Structure
• Employer Identification Number (EIN)
• How to Name Your Business

Frequently Asked Questions

Do I need a federal business license?

Only for certain activities. In the US, the SBA's guide (checked October 31, 2026) says: "Business activities regulated by a federal agency will need a federal license or permit." Its table lists those activities and the agency that issues each license.

Where do I find out which state and local licenses I need?

In the US, the SBA's guide (checked October 31, 2026) says: "Visit your Secretary of State’s website to find out which permits and licenses you need." Check with your county and city as well.

Do business licenses expire?

Some do. In the US, the SBA's guide (checked October 31, 2026) says: "Some licenses and permits expire after a set period of time."

Is registering my business the same as getting a license?

They're separate steps in the SBA's guide to launching a business. In the US, the SBA's guide (checked October 31, 2026) says: "Register your business to make it a distinct legal entity."