Business Licenses Explained
The complete guide to federal, state, county and city licenses. What you actually need for your LLC, how to get it, and how to stay compliant.
What Are Business Licenses?
A business license is permission from a government agency to operate. An LLC formation is NOT a business license — LLC creates your company, license allows you to legally operate in your location and industry.
Most businesses need at least 2-3 licenses: state LLC registration + county/city business license + industry-specific license. Without them, you face fines $100-$1000+, can’t open business bank account, and can’t get insurance.
For more entity guides, visit LLCGuidance.com — your complete resource for LLC and compliance.
4 Types of Business Licenses You May Need
Who Needs a Business License?
- All LLCs & Corporations: Almost every city/county requires a business license even if you work from home — e.g., Atlanta, GA requires license for all businesses including consultants.
- Sole Proprietors & Freelancers: Yes — even without LLC, city still requires license if you operate there.
- Online Businesses: Yes — home city license required. Plus sales tax permit if you sell physical products.
- Contractors / Airbnb / Consultants: Yes + industry license (contractor license, STR permit).
How to Get a Business License (Step-by-Step)
Form Your LLC First
File Articles of Organization with your state, get EIN from IRS.gov. You’ll need LLC name and EIN to apply for licenses. See our state guides at LLCGuidance.com.
Check Federal Requirements
Most businesses skip this. Only check if you are in alcohol, firearms, transportation, aviation, agriculture, or financial services — visit SBA.gov.
Get State License & Tax Permits
Apply for state business license (if state requires) and sales tax permit via Department of Revenue website. Free to $100. Needed to collect sales tax legally.
Get County / City Business License
Go to your city hall website or county clerk portal, search “business license application”. Provide LLC name, EIN, address, business activity, estimated revenue. Fee $25-$150/year. Approval 1-14 days.
Get Industry-Specific Permits
Contractor? Contact state contractor board. Airbnb? City STR permit. Restaurant? Health dept. This is where most delays happen — apply early.
Renew and Stay Compliant
Most licenses renew annually. Set calendar reminders. Keep copies with operating agreement and bank account. Update if you move address or add DBA.
How Much Do Business Licenses Cost?
Best Services to Get Your Licenses & LLC
Same 4 partners we trust — ranked as you requested: Business Rocket #1 for licenses.
Industry leader for business license research and filing. They find every federal, state, county, and city license you need and file them for you — perfect for contractors, Airbnb, restaurants.
Visit Business Rocket →
Attorney support to determine which licenses apply to your industry and location + compliance calendar so you never miss renewal.
Visit LegalZoom →
Free LLC formation + optional business license research package for $99. Great if you want cheap LLC and license help in one.
Visit Bizee →
Formation + EIN + bookkeeping + annual compliance. Handles license renewals and sales tax registration as you expand to new states.
Visit Doola →FAQs — Business Licenses
Final Verdict — Do You Need Business Licenses?
Yes — every business needs at least city/county license plus LLC registration. Check federal only if regulated, state sales tax if selling goods, and industry license if required.
Our recommendation ranked as requested: #1 Business Rocket for license research & filing, #2 LegalZoom for legal compliance, #3 Bizee for budget LLC + license, #4 Doola for scaling.