Question 1

What licenses do I need to start a business?

Accepted Answer

Most businesses need a combination of federal, state, and local licenses. At a minimum, you will need a state business license or registration, an EIN from the IRS (if you have employees or are not a sole proprietorship), and a local city or county business license. Industry-specific permits (food handler, contractor, professional license) may also apply depending on your business type.

Question 2

How much does a business license cost?

Accepted Answer

Business license fees vary widely by state, city, and business type. State-level registrations typically range from $50 to $500. City and county licenses can be as low as $25 or over $1,000 depending on the jurisdiction. An EIN from the IRS is free. Use our free license checker to see exactly which licenses apply to your specific business.

Question 3

Do I need a business license to sell online?

Accepted Answer

Yes. Even if you only sell online, you typically need a state business license or registration, sales tax permits in states where you have nexus, and a local business license in the city where you operate from. Some states also require a home occupation permit if you run the business from your residence.

Question 4

How long does it take to get a business license?

Accepted Answer

Timelines vary by license type. An EIN can be obtained the same day online. State business registrations typically take 1 to 2 weeks. Local business licenses can take anywhere from a few days to several weeks depending on your city. Industry-specific permits like food service or contractor licenses may take 2 to 8 weeks due to inspections or exam requirements.

What licenses does your business need?

What licenses does your business need?