{"id":5454,"date":"2016-04-04T10:47:58","date_gmt":"2016-04-04T15:47:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/licenses-and-permits-overview.html"},"modified":"2026-05-20T14:02:00","modified_gmt":"2026-05-20T19:02:00","slug":"licenses-and-permits-overview","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/licenses-and-permits-overview.html","title":{"rendered":"Business Licenses and Permits: The Compliance Guide"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-8f761849 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n<div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\"><h1 class=\"fl-no-margin-top\">Business Licenses and Permits: The Compliance Guide<\/h1>\n\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/amber-sheppard-esq\/\">Amber Sheppard, Esq.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/catherine-hodder-esq\/\">Catherine Hodder, Esq.<\/a>\n                | Last updated\n        <time>\n                            May 20, 2026\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>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    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n<div class=\"fl-key-takeaways fl-mb30\" data-testid=\"fl-key-takeaways\">\n    <div class=\"fl-card-content\">\n        <div class=\"fl-card-body fl-card-bg-teal fl-flex fl-flex-column\">\n                            <h2 class=\"fl-card-title fl-h2 fl-no-margin\">Key Takeaways<\/h2>\n                        <p>A business license or permit issued by government agencies allows a company to operate within a certain jurisdiction. To be compliant, entrepreneurs must acquire a general or specific license from federal, state, and local authorities based on their industry and location.<\/p>\n\n        <\/div>\n    <\/div>\n<\/div>\n\n\n<div><p>Many entrepreneurs don\u2019t know they may need several local, state, and <span data-term-id=\"54201192\">federal\u00a0<\/span><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/starting-a-business-license-and-permit-checklist.html\"><span data-term-id=\"54201192\">licenses<\/span> and permits<\/a>\u00a0from <span data-term-id=\"54201211\">government agencies<\/span>. <span data-term-id=\"54201191\">Home-based businesses<\/span>, consulting firms, retail stores, and even daycares need local licenses and permits.<\/p>\n<p>You may need specific local or\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/state-and-local-small-business-licenses-for-start-ups.html\">state permits<\/a>\u00a0for certain regulated activities. As a <span data-term-id=\"54201178\">small <\/span><span data-term-id=\"54201207\">business<\/span><span data-term-id=\"54201207\"> owner<\/span>, you should know these <span data-term-id=\"54201214\">licensing requirements<\/span> to avoid fines and legal issues.<\/p>\n<p>This FindLaw article explains the answers to <span data-term-id=\"54201178\">small <\/span><span data-term-id=\"54201215\">business<\/span><span data-term-id=\"54201215\"> permits<\/span> and licensing FAQs (frequently asked questions).<\/p>\n<p><b><i>Keep your business compliant.\u00a0<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115313\/26746?subId1=licenses-and-permits-overview-in-content\" rel=\"sponsored noopener\" data-cta=\"Biz LZ - LATL Callout\" data-cta-url=\"legalzoom.com\" target=\"_blank\">Get a business license report from FindLaw&#8217;s trusted partner, LegalZoom<\/a>.<\/i><\/b><\/p>\n<h2>Who Issues Business-Related Licenses and Permits?<\/h2>\n<p>All levels of government issue <a rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115313\/26746?subId1=licenses-and-permits-overview%20wct250924184848svemz&amp;auto-aff-business-license\" target=\"_blank\">business licenses<\/a> and permits. This includes <span data-term-id=\"54201205\">federal agencies<\/span> and\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/state-business-licenses.html\">state and <span data-term-id=\"54201185\">local<\/span><\/a><span data-term-id=\"54201185\">\u00a0governments<\/span>.<\/p>\n<p>For example, imagine you are opening a New Orleans restaurant with a bar. You\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/forming-an-llc.html\">formed your <span data-term-id=\"54201220\">limited liability company<\/span><\/a>\u00a0already. Now, you must get all the necessary licenses and permits from the city. This will include a <span data-term-id=\"54201186\">general <\/span><a rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115313\/26746?subId1=licenses-and-permits-overview%20wct250924184848b5g7n&amp;auto-aff-business-license\" target=\"_blank\"><span data-term-id=\"54201186\">business license<\/span><\/a> and <span data-term-id=\"54201194\">health permit<\/span> (to prepare and sell food). You also need a Louisiana <span data-term-id=\"54201240\">liquor license<\/span> to sell <span data-term-id=\"54201203\">alcoholic beverages<\/span>. You also need a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/employer-identification-number-ein-faq.html\"><span data-term-id=\"54201233\">federal tax<\/span> I.D. number<\/a>\u00a0from the U.S. government.<\/p>\n<h2>What Types of Licenses and Permits Does a Business Need?<\/h2>\n<p>The licenses and permits you need depend on the <span data-term-id=\"54201181\">type of business<\/span> you operate and where you open.<\/p>\n<p>Below is an overview of some of the most common types of <span data-term-id=\"54201178\">small business<\/span> licensing and permit requirements.<\/p>\n<ul>\n<li>\n<p><strong>Business licenses:<\/strong>\u00a0If your business is within an incorporated city\u2019s limits, you may need a license from the city. If your business is outside the city limits, you will likely need a license from the county. For more information, contact the county or city office in your area. You may need more licenses at the state level, depending on the nature of your business.<\/p>\n<\/li>\n<li>\n<p><strong>Building permits:<\/strong>\u00a0You need a local permit to construct or renovate a building for commercial use. Most <span data-term-id=\"54201185\">local governments<\/span> have a department of planning. You usually need to submit detailed plans for approval. The agency will review your plans before approving the work and issuing the permit. If you hire a general contractor, they will likely be familiar with applying for building permits. This could save you time and money.<\/p>\n<\/li>\n<li>\n<p><strong>Certificate of occupancy:<\/strong>\u00a0If you operate in a building for your <span data-term-id=\"54201201\">new business<\/span>, you need a\u00a0<a href=\"https:\/\/dictionary.findlaw.com\/definition\/certificate-of-occupancy.html\" target=\"_blank\" rel=\"noopener\">certificate of occupancy<\/a>. The issuing authority will probably be your city or county zoning department. This certificate will verify that your building complies with local zoning ordinances and building codes.<\/p>\n<\/li>\n<li>\n<p><strong><span data-term-id=\"54201187\">Employer Identification Number<\/span>:<\/strong>\u00a0Most businesses need a federal <span data-term-id=\"54201187\">Employer Identification Number<\/span> (<span data-term-id=\"54201188\">EIN<\/span>) from the <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/get-an-employer-identification-number\" target=\"_blank\" rel=\"noopener\">Internal Revenue Service (<span data-term-id=\"54201198\">IRS<\/span>)<\/a>. It is like a Social Security number for your company. You may also hear people calling this number a <span data-term-id=\"54201237\">Tax ID<\/span><span data-term-id=\"54201237\"> number<\/span>. You use this for filing taxes and opening bank accounts for your <span data-term-id=\"54201208\">business entity<\/span>.<\/p>\n<\/li>\n<li>\n<p><strong>Health department permits:<\/strong>\u00a0Businesses that\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-open-a-restaurant-.html\">sell or prepare food<\/a>\u00a0need a permit from their local health department, which is usually your county.<\/p>\n<\/li>\n<li>\n<p><strong>Licenses based on type of product sold:<\/strong>\u00a0You usually need a special license to\u00a0<a href=\"https:\/\/www.findlaw.com\/cannabis-law\/starting-a-cannabis-business.html\">sell cannabis<\/a>, firearms, gasoline,\u00a0<a href=\"https:\/\/www.findlaw.com\/legalblogs\/small-business\/how-to-get-a-liquor-license\/\">liquor<\/a>, or lottery tickets. Each state has its own <span data-term-id=\"54201214\">licensing requirements<\/span> based on what a business sells.<\/p>\n<\/li>\n<li>\n<p><strong>Professional licenses:\u00a0<\/strong>If you provide professional services, you will most likely need to get <span data-term-id=\"54201229\">state licenses<\/span> before practicing. Licensed professions include accounting, architecture, counseling, law, and medicine.<\/p>\n<\/li>\n<li>\n<p><strong>Property use and <span data-term-id=\"54201217\">zoning permits<\/span>:\u00a0<\/strong>You may need a land-use permit to start a manufacturing business. A\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/home-based-businesses-overview.html\"><span data-term-id=\"54201191\">home-based business<\/span><\/a>\u00a0may also need a land use permit, depending on your local regulations. You should contact your city or county\u2019s\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/how-to-handle-problems-with-commercial-zoning-laws.html\">zoning department<\/a>\u00a0for your requirements.<\/p>\n<\/li>\n<li>\n<p><strong><span data-term-id=\"54201200\">Sales tax<\/span><span data-term-id=\"54201200\"> licenses<\/span> and numbers:<em>\u00a0<\/em><\/strong>Your business may also need a state <span data-term-id=\"54201200\">sales tax<\/span><span data-term-id=\"54201200\"> license<\/span> and identification number. Most states have a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-taxes\/sales-and-use-tax.html\">sales and use tax<\/a>\u00a0for physical items. In states with <span data-term-id=\"54201182\">sales taxes<\/span>, the <span data-term-id=\"54201231\">retailer<\/span> will need a <span data-term-id=\"54201182\">sales tax<\/span> number and <span data-term-id=\"54201225\">sales tax<\/span><span data-term-id=\"54201225\"> permit<\/span>. A <span data-term-id=\"54201225\">sales tax<\/span><span data-term-id=\"54201225\"> permit<\/span> is also known as a seller\u2019s permit.<\/p>\n<\/li>\n<\/ul>\n<p>This list is not exhaustive. Regulations are subject to change. Do your research and\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">talk to an attorney<\/a>\u00a0if you have concerns about your <span data-term-id=\"54201214\">licensing requirements<\/span>.<\/p>\n<h2>What Are the Types of Government Licenses?<\/h2>\n<p>Governments generally issue two <span data-term-id=\"54201228\">types of\u00a0<\/span><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-licenses-and-permits.html\"><span data-term-id=\"54201228\">business<\/span><span data-term-id=\"54201228\"> licenses<\/span><\/a>: <span data-term-id=\"54201186\">general business licenses<\/span> and specific licenses.<\/p>\n<h3><span data-term-id=\"54201186\">General Business Licenses<\/span><\/h3>\n<p>For a <span data-term-id=\"54201186\">general <\/span><a rel=\"sponsored noopener\" href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115313\/26746?subId1=licenses-and-permits-overview%20wct250924184848ui828&amp;auto-aff-business-license\" target=\"_blank\"><span data-term-id=\"54201186\">business license<\/span><\/a>, it doesn\u2019t matter what the nature of your business is. All businesses must apply for this license.<\/p>\n<p>Many states and <span data-term-id=\"54201185\">local governments<\/span> require a <span data-term-id=\"54201186\">general business license<\/span> for all businesses operating in the state or city. There is usually a fee involved. Sometimes, there is a yearly report and an annual fee, too.<\/p>\n<p>These general licenses allow states and <span data-term-id=\"54201185\">local governments<\/span> to track <span data-term-id=\"54201193\">business activity<\/span> and collect revenue. Tax registration is also necessary in most states, especially if you\u00a0<a href=\"https:\/\/www.findlaw.com\/employment.html\">hire employees<\/a>\u00a0or sell goods.<\/p>\n<p>You may also need to get specific licenses. These depend on the <span data-term-id=\"54201181\">type of business<\/span> you conduct.<\/p>\n<h3>Specific Business Licenses<\/h3>\n<p>You will need a license in many states and towns to operate any business. <span data-term-id=\"54201222\">Different <\/span><span data-term-id=\"54201181\">types of businesses<\/span> have specific <span data-term-id=\"54201214\">licensing requirements<\/span>. For example, these <span data-term-id=\"54201181\">types of <\/span><span data-term-id=\"54201193\">business<\/span><span data-term-id=\"54201193\"> activities<\/span> may require a specific license or permit:<\/p>\n<p>Some common examples include:<\/p>\n<ul>\n<li>\n<p>Agriculture or <span data-term-id=\"54201223\">animal products<\/span><\/p>\n<\/li>\n<li>\n<p>Auctions<\/p>\n<\/li>\n<li>\n<p>Alcohol, tobacco, or firearm sales<\/p>\n<\/li>\n<li>\n<p>Cannabis<\/p>\n<\/li>\n<li>\n<p>Commercial transportation<\/p>\n<\/li>\n<li>\n<p>Construction<\/p>\n<\/li>\n<li>\n<p>Financial services<\/p>\n<\/li>\n<\/ul>\n<p>Your state or <span data-term-id=\"54201185\">local government<\/span> may require licenses or <span data-term-id=\"54201230\">special permits<\/span> for other <span data-term-id=\"54201193\">business activities<\/span>. Your <span data-term-id=\"54201199\">Secretary of State<\/span>\u2019s website is usually a good place to learn more about what requires a license or permit.<\/p>\n<p>You may need a <span data-term-id=\"54201192\">federal license<\/span> if you operate in certain federally regulated industries. These include, among others:<\/p>\n<ul>\n<li>\n<p>Aviation<\/p>\n<\/li>\n<li>\n<p>Broadcasting<\/p>\n<\/li>\n<li>\n<p>Firearm sales<\/p>\n<\/li>\n<li>\n<p>Mining<\/p>\n<\/li>\n<li>\n<p>Trucking<\/p>\n<\/li>\n<\/ul>\n<p>You should visit the\u00a0<a href=\"https:\/\/www.sba.gov\/business-guide\/launch-your-business\/apply-licenses-permits\" target=\"_blank\" rel=\"noopener\">U.S. <span data-term-id=\"54201183\">Small Business<\/span><span data-term-id=\"54201183\"> Administration<\/span> (<span data-term-id=\"54201204\">SBA<\/span>) website<\/a>\u00a0to view a full list of business categories that <span data-term-id=\"54201205\">federal agencies<\/span> regulate. Suppose you fall into one of these categories. In that case, you must apply for a business license from the associated <span data-term-id=\"54201205\">federal agency<\/span> or licensing authority.<\/p>\n<h2>Is a Certificate of Occupancy the Same as a Business License?<\/h2>\n<p>No. A certificate of occupancy does not take the place of the other business licenses you need to get.<\/p>\n<p>If you build,\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-operations\/factors-to-consider-lease-or-purchase-of-a-facility.html\">rent, or buy property<\/a>\u00a0for commercial use, you will probably need a certificate of occupancy. Contact your city or county building department to find out how to get one.<\/p>\n<p>If you hire a general contractor, this person will often have experience getting permits and licenses. They will probably know which agency to contact and how long the certificate of occupancy will take.<\/p>\n<h2>Do I Need to Register My <span data-term-id=\"54201180\">Business Name<\/span>?<\/h2>\n<p>Yes. When you create a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/choosing-a-legal-structure.html\"><span data-term-id=\"54201196\">business structure<\/span><\/a>\u00a0like a corporation or LLC, you give your <span data-term-id=\"54201180\">business name<\/span> to your <span data-term-id=\"54201184\">state government<\/span>. This is part of your business formation documents. If you operate a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/sole-proprietorships.html\">sole proprietorship<\/a>\u00a0or general partnership, your official <span data-term-id=\"54201180\">business name<\/span> is your personal name.<\/p>\n<p>Suppose you plan to <span data-term-id=\"54201206\">conduct business<\/span> under a name other than your official <span data-term-id=\"54201180\">business name<\/span> or personal name. In that case, you will need to register the new name. Most counties and states only allow businesses to do business under a name other than their legal name after registering the name first. The new name is a\u00a0<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-a-dba-.html\"><span data-term-id=\"54201202\">DBA<\/span> (<span data-term-id=\"54201210\">doing business as<\/span>)<\/a>. Depending on the county and state, it may also be called a fictitious or assumed <span data-term-id=\"54201180\">business name<\/span>.<\/p>\n<p>Registration requirements for <span data-term-id=\"54201202\">DBA<\/span> names are typically straightforward. First, you must choose an original name that no other state business uses. Next, you submit an application and a government fee to your local county, <span data-term-id=\"54201199\">secretary of state<\/span>, or other city or <span data-term-id=\"54201224\">state agency<\/span>.<\/p>\n<h2>Beware of \u2018Grandfathering\u2019 Issues<\/h2>\n<p>Existing businesses are sometimes exempt from <span data-term-id=\"54201201\">new business<\/span> laws and regulations after the business is already operating. This is &#8220;grandfathering.&#8221;<\/p>\n<p>But once a business gets sold, the new owner may need to follow all local regulations fully. This includes any regulations from which the prior owner might have had an exemption. In other words, if you buy an existing business, you may need to get permits and licenses that the previous owner didn\u2019t.<\/p>\n<h2>What Is the Cost of a Business License?<\/h2>\n<p>License and permit pricing depends on the license, permit, and business type. They can range from $50 to thousands of dollars.<\/p>\n<h2>Need Help With Business License Compliance?<\/h2>\n<p><span data-term-id=\"54201178\">Small business<\/span> license and permit compliance is challenging. You don\u2019t have to figure it out on your own. An experienced\u00a0<a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">business lawyer<\/a>\u00a0can help you with your business license applications. With an attorney\u2019s help, you can feel confident that you fully follow the laws that apply to your business. A business lawyer can also help answer other legal questions about your business.<\/p>\n<p>\u00a0<\/p><\/div>\n\n\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n            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