Question
What licenses and permits do I need to start a business?
I’m trying to avoid fines or legal issues and need to know what permits or licenses I’m supposed to get before opening my business.
Answer
Most businesses need at least one license or permit before operating legally. The exact requirements depend on the business location, industry, and whether the business sells products, services, or regulated goods.
Some businesses only need a general business license, while others may need sales tax permits, professional licenses, health permits, or zoning approvals. Operating without required licenses can lead to fines, penalties, delayed openings, or forced shutdowns.
What licenses do most small businesses need?
Many businesses need basic registrations before opening. Common requirements include:
- A general business license from the city or county.
- A sales tax permit if selling taxable goods or services.
- A DBA (“doing business as”) filing if operating under a business name.
- An EIN (Employer Identification Number) from the IRS for taxes or hiring employees.
- Employer registrations for payroll taxes or workers’ compensation.
Online, home-based, and part-time businesses may still need local licenses or permits.
Which businesses need special permits or approvals?
Some industries have extra rules because of health, safety, professional licensing, or regulatory requirements.
Special permits, licenses, or approvals may apply to:
- Food, restaurant, or catering businesses.
- Construction or contractor services.
- Childcare or healthcare businesses.
- Certain beauty, personal care, fitness, or professional service businesses that require occupational or professional licenses, such as cosmetologists or physical therapists.
- Alcohol sales, transportation services, or businesses selling regulated products.
Local zoning laws may also limit where a business can operate, especially from a home address. In some industries, businesses may need approvals or registrations from multiple local, state, or federal agencies before they can begin operating.
What to do next…
- Check city, county, and state licensing requirements.
- Confirm whether sales tax or employer registrations apply.
- Review zoning rules before signing a lease or operating from home.
- Keep permits and renewals organized to avoid penalties.
What to consider in your specific situation
The general answer applies to many businesses, but licensing rules can vary widely depending on the details of the business.
- The type of products or services being offered.
- Whether the business is home-based, online, mobile, or storefront.
- State, county, and city licensing requirements.
- Industry rules for regulated professions or products.
- Whether employees or contractors will be hired.
- Health, safety, zoning, or insurance requirements.
Since every situation is different, consider getting more information through Rocket Copilot or an attorney review to move forward more confidently.
At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced attorneys to ensure legal accuracy.
Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask an Attorney.
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Explore more about business registration requirements
Explore more about business registration requirements
Starting a business often requires registering with the appropriate government agencies and filing certain documents. These questions explain the registration, licensing, and filing requirements that may apply, and how they can vary by state.
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Disclosures
- This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask an Attorney.