To get a business license, first figure out what your business does and where it will be located. The office, forms, and license type can vary by location. State, city, county, and federal offices might all be involved.
Some businesses need a city or county license. Others might need state, federal, health, seller, or zoning approval before they can open or sell to the public. The rules for your industry and your business location both affect what you need to file.
In this post, we’ll explain when you might need a license and what you’ll need to get one. We’ll cover all the main steps involved in getting a business license.
When Do You Need to Get a Business License?
You might need a business license before you start running your business. The rules depend on your location and what you do, so one business may need local approval while another needs state or federal review.
You may also need a license if your industry has health, safety, tax, zoning, or professional rules. Food businesses, seller-based businesses, and regulated trades often go through extra review before getting approved. Sometimes, you’ll need other permits as part of starting your business.
Who Can Apply for a Business License?
The person or company running the business usually needs to fill out the license application. The name you put on the form depends on your business structure. If you’re the only owner, you might apply as an individual. If you have a registered business, use its official name. The office may also ask for details about owners, managers, or partners before reviewing your application.
- Sole proprietors: If you own the business by yourself, you can apply for a business license as a sole proprietor. Depending on the local form, you might use your own name or your registered business name. Even as a sole owner, you may still need local business permits. You might also need seller permits or health approvals, depending on what you do and where you work.
- LLCs: After forming an LLC, you can apply for a business license using your company’s legal name. The application will likely ask for your LLC’s name, address, business activity, and tax details. Some local offices also want information about managers or owners. The type of license you need depends on your location and what your business does.
- Corporations: Corporations often have more compliance tasks to handle. Depending on the industry, you may need licenses from federal, state, and local offices. A standard business license might not be enough for every corporation. If you’re in finance, healthcare, or transportation, you may need extra permits. It’s also important to keep up with renewals, since missing one can affect contracts and business relationships.
- Partnerships: If two or more people run a business together, they form a partnership. The license application usually lists all partners and the business name. If you use a trade name, you may also need a DBA. All partners are responsible for keeping the license up to date and accurate.
What You Need Before Filing for a Business License?
Gather your business details before you start the application. This way, you won’t have to stop and look things up as you fill it out. Most offices need to confirm your business name, ownership, and address. They’ll also want to know what your business will do before reviewing your license request.
Legal Business Name
Your legal business name is the name officially connected to you or to your registered business. When the license form asks for that name, use it exactly as it appears on record.
If you’ve already formed an LLC or corporation, use the exact name from your state formation record. Keeping the same name on all your records can help you avoid questions or corrections later.
Business Structure
Your business structure lets the office know who owns and runs the business. It also affects how you list owners, partners, managers, or officers on the application.
- A sole proprietor is one owner.
- A partnership is a relationship between two or more owners working together.
- An LLC or corporation may fit owners who want a registered business entity first.
Make sure to apply for any licenses or permits your work requires.
Tax ID and Registration
Some license forms ask for tax records as well as your business registration details. You may need to include a tax ID, depending on the office and your business type.
- An EIN is a federal tax ID from the IRS. You need it to open a business bank account, hire employees, or form an LLC or corporation.
- If your business sells taxable goods or services, seller or sales tax filings may also come into play.
Check the office’s instructions before you begin so you know which records to include with your application.
Business Address
Your business address helps the office figure out which local rules apply to you. City limits, county areas, and zoning rules can affect the type of license you need or which office handles your application.
Start by identifying where your business will operate. Then check the city, county, or state websites for business license information. Your address can help you find the right office to file with.
Business Activity
The office needs to know what your business does. A brief description of your goods or services helps them match you with the right license.
Some businesses sell retail goods. Others serve food, cut hair, repair cars, or provide care services. What your business does affects the permits, inspections, and reviews you’ll need.
Owner and License Details
When you fill out the application, you might need more than just basic business details. The form could also ask for information about the owner or company, such as:
- Your name, your manager’s name, or your partner’s name
- Mailing address, phone number, email
- A short business description
You might also see questions about unit numbers, permit details, or which office handles your type of work. Read the whole form before you start. This helps you gather the right records ahead of time and avoid delays.
Types of Business Licenses You Can Apply For
License requirements can change depending on your business. Where you operate and what you do each day both affect what you’ll need.
Some owners only need to file once. Others may need local permits, tax filings, health reviews, or to follow trade rules, which can add more steps.
- General Business License: A general business license covers basic permission to operate within a city or county. Most businesses need this as a starting point before any other permits apply.
- State Business License: Some states require a separate state license, especially for regulated industries. The state issues this license in addition to local requirements, not as a replacement.
- City or County License: Local governments set their own licensing rules. If your business is inside city limits, you’ll need city approval. If it’s in an unincorporated area, you may need to work with the county instead.
- Seller’s Permit: If you sell taxable goods, you’ll need a seller’s permit. This lets you collect sales tax from customers. Most states issue these through their Department of Revenue.
- Professional License: Doctors, contractors, accountants, and other professionals need to show proof of their qualifications. This license is separate from a general business license and is based on education, testing, and state board approval.
- Health Permit: If your business handles food or drinks for the public, like a restaurant or food truck, you’ll need a health permit. The local health department will inspect your space before giving you the permit.
- Zoning Permit: This permit shows that your business type is allowed at your chosen location. For example, if you want to run an industrial business in a residential area, you’ll need special approval or may have to move.
- Federal License or Permit: Some industries, like firearms, alcohol, aviation, and broadcasting, are regulated by the federal government. In these cases, the federal agency issues the permit separately from state and local requirements.
How Long Does It Take to Get a Business License?
How long it takes to get a business license depends on the office, your business type, and the records you submit. City, county, state, and federal filings can all have different timelines. Extra permits or reviews can make the process take longer.
Some businesses wait longer if an inspection is needed, like food businesses, health services, salons, retail shops, or auto repair shops. Missing details can also slow things down. The office may contact you if your address is wrong, owner information is incomplete, or your business description is too vague.
Common Mistakes That Can Delay a Business License Application
Many license problems happen before you even send in the form. Sending it to the wrong office or leaving out records can delay your review. A weak business description can also lead to more questions from the agency. Some owners file before checking the local rules.
Those rules may be tied to the business address or the type of work they plan to do. A little early preparation can help prevent filing problems and help the office review a cleaner application.
- Wrong business name on the form
- Missing suite or unit number
- Filing with the wrong office
- Weak business activity description
- Owner details left incomplete
- Zoning rules left unchecked
- Required inspection steps missed
- Tax or seller records left out
Conclusion
Your business license application will go more smoothly if you have all your business details ready before you start. The legal name, structure, address, owner details, and business activity help the office process your file. If any of these are missing, the review can slow down and you may have to provide more records.
The license you need depends on where your business operates and what kind of work you do. Some owners only need a local filing, while others may also need seller, health, zoning, professional, or federal approval along with the main business license.
Reviewing your address and business activity carefully can help you figure out what you need before you file. MyCorporation can help with business license research and filing if you want extra support. Contact us here.