Licensing 101 for Business Owners

by

What You Need, Where to Get It, and How Not to Screw It Up

Every business needs permission to operate.
Uncle Sam always gets his cut.
It starts with registration, licensing, and permitting.

And here’s the hard truth:
There’s no universal checklist for this.
Every city, county, and state makes its own rules. They don’t coordinate. They don’t remind you. And they won’t refund you if you screw it up.

If you want to stay legal—and avoid fines, shutdowns, or retroactive penalties—you’ve got to learn how to navigate the local maze.

The Core Types of Business Licenses

1. City Business License / Local Business Tax Receipt

  • Issued by: City government
  • Why you need it: Gives you legal permission to operate inside city limits
  • Also called: Occupational license or business tax certificate

Even if you’re just working from home, you probably need this.

2. County Business License

  • Issued by: County Tax Collector or Revenue Department
  • Why you need it: If you’re in an unincorporated area—or your county requires it on top of your city license

3. State Business Registration

  • Issued by: State-level Division of Corporations or Secretary of State
  • Includes:
    • Entity formation (LLC, Corporation, etc.)
    • Registered agent
    • State ID number

This is your first legal step. Without it, you can’t open a bank account or sign contracts under your business name.

4. Sales Tax Certificate (a.k.a. Resale Certificate)

  • Issued by: State Department of Revenue
  • Why you need it: If you sell taxable goods or services and collect sales tax

5. Zoning Permits

  • Issued by: Local zoning department
  • Why you need it: To confirm your business activity is allowed at your address—especially true for home-based or industrial operations

6. Health & Safety Permits

  • Issued by: Local health department or fire marshal
  • Required for:
    • Food service
    • Salons/barbers
    • Childcare
    • Medical services
    • Gyms

Most involve inspections. Expect paperwork. Plan ahead.

7. Professional & Specialty Licenses

These are industry-specific and often state-regulated. Common examples:

  • General Contractor License
  • Auto Dealer License
  • Barber or Cosmetology License
  • Real Estate License
  • Massage Therapy License
  • Liquor License
  • Street Vendor or Mobile Food Permit
  • HVAC/Electrical/Plumbing License
  • Home Inspector / Mold Assessor
  • Any clinical, legal, or financial profession

If it touches safety, health, or money—it’s probably regulated.

Think unlicensed work doesn’t affect you? It already has. Here’s what you need to know.

How to Find the Right Requirements

There’s no master site. You have to work backward from:

  • Where you’re operating
  • What you’re doing
  • And how you’re doing it

Your Process:

  1. Start local.
    Search “[Your City] business license” and look for a Business Tax division or Clerk’s Office.
  2. Check the county.
    Visit your County Tax Collector’s website—especially if you’re in an unincorporated area.
  3. Confirm state-level requirements.
    • Formation: Secretary of State / Division of Corporations
    • Tax Certificate: State Department of Revenue
    • Specialty Licenses: State licensing boards
  4. Check your industry.
    Search “[Your Industry] license in [Your State]” and scan for anything that requires a background check, exam, bond, or continuing education.
  5. Still not sure? Pick up the phone.
    Call the city clerk or county office. Be polite. Take notes. Ask for what’s required to legally operate your business at your address.