{"id":5531,"date":"2016-04-04T10:48:01","date_gmt":"2016-04-04T15:48:01","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/state-business-licenses.html"},"modified":"2026-05-08T15:40:00","modified_gmt":"2026-05-08T20:40:00","slug":"state-business-licenses","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/state-business-licenses.html","title":{"rendered":"State Business Licenses: Professional, Tax, and Employer Rules\u00a0\u00a0"},"content":{"rendered":"\n
\n

State Business Licenses: Professional, Tax, and Employer Rules <\/h1>\n\n
\n
\n By FindLaw Staff<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n

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
\n

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
\n

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

\n

New business owners should research local, state, and federal requirements for operating their type of business. Often this includes a business license application for their specific type of business activities. A business license is a legal permit issued by a government agency to allow an individual or company to conduct business within a specific jurisdiction.<\/p>\n\n <\/div>\n\n\n\n

You and your business partners finally took the plunge. You are throwing your hat into the restaurant owner arena and are starting a business<\/a>. You\u2019ve located a small space in downtown, hired a few employees, including a coveted chef, and are ready to roll. But don\u2019t forget you\u2019ll also need to adhere to your state\u2019s business <\/span>licensing<\/span> requirements<\/span><\/a>. While business <\/span>licensing<\/span> requirements<\/span> vary from state to state, some of the more common types are listed below.<\/p>\n

Keep your business compliant.\u00a0Get a business license report from FindLaw’s trusted partner, LegalZoom<\/a>.<\/b><\/i><\/p>\n

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

A state business license<\/span><\/a> is the main document required for tax purposes<\/a> and conducting other basic business functions. Many states have established small business<\/span> assistance agencies to help small businesses<\/span> comply with state requirements.<\/p>\n

Why do you need a business license<\/span>? Simply put, if your goal is to generate revenue by selling goods or services to the public, it is important to follow the rules your state put into place to guard the public and collect tax revenue.<\/p>\n

Occupations and Professions<\/h2>\n

State licenses<\/span> are frequently required for occupations as varied as building contractors, physicians, appraisers, accountants, barbers, real estate<\/span> agents, auctioneers, private investigators, private security guards, funeral directors, bill collectors, and cosmetologists. Since you can\u2019t always guess which occupations and professions are licensed by your state, you should always check with your state licensing<\/span> authorities. For instance, if you are an attorney you\u2019ll need to obtain a license from your state bar<\/a>.<\/p>\n

Licenses Based on Type of Product Sold<\/h2>\n

Some state <\/span>licensing<\/span> requirements<\/span> are based on the type of product the business sells. For example, most states require special licenses before a business may sell liquor, lottery tickets, gasoline or firearms. Contact your state licensing<\/span> authorities to determine the licensing requirements<\/span> of your business.<\/p>\n

Tax Registration<\/h2>\n

If the state in which you operate has a state income tax, you\u2019ll have to register and obtain an state employer identification number<\/span> from your state Department of Revenue<\/a> or Treasury Department<\/a>. If you\u2019re engaging in retail sales, you will need to obtain a sales tax<\/span> license<\/a>.<\/p>\n

Trade Name Registration<\/h2>\n

Having a strong business name<\/span> is vital to your organization. Make sure to follow all state laws in order to protect your trade name<\/a>. If your business will only be operated in your local community, registering your company name with the state may be sufficient.<\/p>\n

Employer Registrations<\/h2>\n

If you have any employees, you\u2019ll probably be required to make unemployment insurance contributions<\/a>. Unemployment insurance is meant for workers who become unemployed through no fault of their own. There are some exceptions to this rule. For more information, contact your state Department of Revenue or Department of Labor.<\/p>\n

Weight and Measurement Registration Requirement<\/h2>\n

If you weigh items for sale, such as landscaping goods, coal, or firewood, your state may require that you have this type of permit.<\/p>\n

Finding a Lawyer<\/h2>\n

Make your life simpler. Don\u2019t spend precious hours trying to figure out your state\u2019s business <\/span>license<\/span><\/a> requirements<\/span>. Contact an experienced business law attorney<\/a> now to help your small business<\/span>.<\/p>\n

If you want to get more specific information for your state, along with links to application information, check out FindLaw\u2019s Starting a Business<\/a> section or see Business.gov<\/a>.<\/p>\n

Looking to start your own business? Use DIY forms<\/a>\u00a0to get a legal business entity set up in minutes.<\/p><\/div>\n\n\n

\n \n Was this helpful?<\/span>\n \n Yes<\/span>\n \n \n \n <\/path>\n <\/g>\n \n \n <\/rect>\n <\/clipPath>\n <\/defs>\n <\/svg>\n <\/i>\n <\/button>\n \n No<\/span>\n \n \n \n \n <\/g>\n \n \n \n <\/clipPath>\n <\/defs>\n <\/svg>\n <\/i>\n <\/button>\n <\/div>\n <\/span>\n