{"id":5179,"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\/federal-business-licenses.html"},"modified":"2026-05-26T15:33:00","modified_gmt":"2026-05-26T20:33:00","slug":"federal-business-licenses","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/federal-business-licenses.html","title":{"rendered":"Federal Business Licenses"},"content":{"rendered":"\n
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Federal Business Licenses<\/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 federal business license is legal authorization issued by a U.S. government agency allowing an entrepreneur to operate a business in a specific regulated industry. These licenses ensure public safety and compliance in sectors such as broadcasting, transportation, and drug manufacturing.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

You run a small business<\/span>. You think about many things daily when running your small business<\/span>\u2014business activities<\/span>, overhead costs, profits, employee satisfaction. But one of the most important topics to know is whether you\u2019ll need a\u00a0federal <\/span>business license<\/span><\/a>\u00a0to operate your type of business legally.<\/p>\n

Follow along as FindLaw takes you through the different types of federal <\/span>business licenses<\/span><\/a> you should be familiar with. For more information, see FindLaw\u2019s\u00a0Starting a Business section<\/a>.<\/p>\n

Keep your business compliant. Get a\u00a0business license report from FindLaw’s trusted partner, LegalZoom<\/a>.<\/b><\/i><\/p>\n

Why Do I Need a Business License<\/span>?<\/h2>\n

Business licenses<\/span> are legal requirements that give a business owner<\/span> permission to run a business. Generally, a business needs<\/span> a business license<\/span><\/a> on a local level<\/span> to operate in a specific jurisdiction or run a certain type of business. For example, if you run an in-home day care<\/span>, you may need a local home occupation permit<\/span> as well as a daycare<\/span> business license<\/span>. A few states such as Alaska, Delaware, Nevada, Washington, and West Virginia have state-level<\/span> business <\/span>license<\/span> requirements<\/span>.<\/p>\n

However, your business type<\/span> determines if you need a federal license<\/span> as well. For example, if you sold firearms, you would need a federal license<\/span> for that activity. Failure to secure the specific licenses<\/span> for your new business<\/span> can result in fines and penalties.<\/p>\n

Other benefits of having the proper business licenses<\/span><\/a> are:<\/p>\n