{"id":5138,"date":"2016-04-04T10:47:57","date_gmt":"2016-04-04T15:47:57","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/business-licenses-and-permits.html"},"modified":"2026-06-04T15:33:00","modified_gmt":"2026-06-04T20:33:00","slug":"business-licenses-and-permits","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-licenses-and-permits.html","title":{"rendered":"How to Secure the Right Business Licenses and Permits Before Opening Your Doors"},"content":{"rendered":"\n
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How to Secure the Right Business Licenses and Permits Before Opening Your Doors<\/h1>\n\n
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\n By Amber Sheppard, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

A business license or permit is authorization by a federal, state, or local government agency to allow an entrepreneur to legally operate a company within a specific jurisdiction.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

You\u2019ve created a\u00a0business plan<\/a>,\u00a0chosen your business name<\/span><\/a>,\u00a0and secured\u00a0business financing<\/a>. Before an entrepreneur<\/span> swings open the doors to\u00a0start their new business<\/span><\/a>, they should check to see what\u00a0business licenses<\/span> and permits<\/a>\u00a0they need. Almost all businesses will need a general <\/span>business license<\/span>. A business permit<\/span> allows the business to open and operate in that city, municipality<\/span>, or state.<\/p>\n

Local governments<\/span> and state <\/span>government<\/span> agencies<\/span><\/a>\u00a0determine licensing requirements<\/span> for different business entities.<\/p>\n

Keep your business compliant. Get a business license report from FindLaw’s trusted partner, LegalZoom<\/a>.<\/i><\/b><\/p>\n

This article and FindLaw\u2019s\u00a0Small Business<\/span><\/a>\u00a0section will help point you in the right direction.<\/p>\n

Federal Business Licenses<\/span><\/h2>\n

The federal government<\/span> has an interest in issuing\u00a0federal licenses<\/span><\/a>\u00a0for\u00a0business activities<\/span><\/a>. Review the\u00a0federal small business<\/span> requirements<\/a>\u00a0before opening your new business<\/span>.<\/p>\n

Federal Employer Identification Number (EIN<\/span>)<\/h3>\n

Before applying for a federal license<\/span>, ensure you have an Employer Identification Number (EIN<\/span>) from the Internal Revenue Service (IRS<\/span>) for your business entity (i.e., corporation<\/a> or limited liability company<\/span> ). Sole proprietorships need an EIN<\/span> in\u00a0some situations<\/a>.<\/p>\n

Much like a Social Security number for individual taxpayers, this federal tax identification number is how the IRS<\/span> identifies your company. Business owners<\/span> use their EINs<\/span> to conduct activities that would otherwise require a Social Security number. While applying for an EIN<\/span><\/a>, the IRS<\/span> requires you to disclose the name and taxpayer ID number (SSN, TIN, or EIN<\/span>) of the person responsible for the business. Even\u00a0nonprofits<\/a>\u00a0must have an EIN<\/span>.<\/p>\n

Types of Federal Business Licenses<\/span><\/h3>\n

If your business is involved in activities supervised and regulated by a federal agency<\/span>, then you will need a federal license<\/span> or permit. Here are some common examples:<\/p>\n