Do you have to have a local business license?
Christopher Ramos
Updated on March 04, 2026
Every state (as well as some counties and cities) require you to have at least one type of business license if you plan to conduct business there. If you plan to run a business out of your home, you likely will need at least one basic business permit or license, such as a sales tax permit.
What’s the difference between an LLC and a business license?
A business license is not the same as forming an LLC (limited liability company) or other legal business entity. An LLC is a legally recognized business entity while a business license gives you permission to engage in a specific type of business in a certain jurisdiction.
Where can I get a local business license?
There is not a “generic” state business license. Local: Each city/town in which you do business may have their own license or permit requirements. Contact the a city office in which your business is based and in which your business operates to learn about local requirements.
When do you not need a business license?
If you are an independent contractor working at another company’s location, you probably don’t need a business license, but cities differ in what they require, so it’s better to call and find out. Businesses that have registered with their state may not need a local city business license, but it’s good to check with the city anyway.
Do you need a business license in California?
There is no standard California state business license. Local: If you are in business in any city in California, no matter how small, you need to apply for a business license in your city by filling out a business license application obtained in person or online from your citys offices or city hall.
Do you have to pay for a business license?
Nearly all local governments require that every business within the city or county apply for a basic ‘business license’ and pay a fee. This is, effectively, a minimum tax levied against all of the business within a particular area – in fact some places even call this permit a tax registration certificate,…
