Frequently Asked Questions
Last updated: November 2026
These are the questions founders ask us most, answered the short way first. LicenseBeacon is not a government agency; we estimate fees from published schedules and point you to the official office for the final word. If your question is really about one city, start with that city's page from the home page, where the calculator and the local rules live together.
The basics
What is a business license?
A business license is permission from a government agency to operate a business in the place that agency governs. Depending on what you do, the issuer may be your city, county, or state, or, for a handful of regulated industries, a federal agency. It is separate from forming your business: forming creates the company, while a license allows it to operate.
Do I need a business license?
Almost certainly at least one. Most businesses need some combination of a local license or registration, a state license or tax registration for their activity, and, in regulated industries, a federal license. The reliable way to check is layer by layer, starting with the U.S. Small Business Administration's licenses and permits page, then your state, then your city page here for the local layer.
Is a business license the same as an LLC?
No. An LLC is not the same as a business license. An LLC is a business structure you form with your Secretary of State, and it mainly affects liability and taxes. A business license is permission from a city, county, or state agency to actually operate. Registering with the Secretary of State forms your entity; it does not fulfill licensing requirements, which you apply for separately. Most businesses need both, in that order.
Is an EIN a business license?
No. An EIN is not a license. An Employer Identification Number is a federal tax ID issued by the IRS, used for tax filings, hiring employees, and opening business bank accounts. You get one free, directly from the IRS Employer Identification Number page, and you should never pay a third-party site for the EIN itself.
What is the difference between a business license, a seller's permit, and a DBA?
They are three different documents from three different places. A business license is permission to operate, usually from your city or county. A seller's permit registers you to collect sales tax, is issued by your state tax agency, and is free in states such as California and Texas. A DBA, also called a fictitious business name, only registers the name you trade under with your county or state; by itself it gives you no permission to operate.
Do freelancers and sole proprietors need a business license?
Usually yes, wherever a general local license exists. Working under your own legal name removes the need for a DBA, not the need for a license. If you sell taxable goods or services, you may also need sales tax registration with your state.
Applying, costs, and timing
How do I get a business license, step by step?
Five steps cover most businesses. First, choose your structure and register your business name, forming an entity with your Secretary of State or filing a DBA if you are a sole proprietor. Second, get an EIN from the IRS if you need one. Third, register for state taxes or a seller's permit if you sell taxable goods. Fourth, apply for your city or county license. Fifth, add any industry permits, such as health, fire, or professional licenses, that your activity requires.
How much does a business license cost?
There is no single national fee, because every agency sets its own. For a small business, a general local license commonly runs from about $25 to a few hundred dollars a year, priced one of four ways: a flat fee, a percentage of gross receipts, a per-employee charge, or a rate set by business category. The spread is wide even among our nine cities: Philadelphia's Commercial Activity License is free, while San Francisco's registration fee runs from $55 up to $60,000 by receipts tier, plus a $4 state fee. Use the calculator on your city page here for an estimate built from the official schedule.
How long does it take to get a business license?
Usually days to a few weeks for a general local license with a complete application. Some registrations, like a state seller's permit, can be issued the same day, while professional and liquor licenses can take weeks to months. The most common cause of delay is an incomplete application, so gather your entity paperwork, EIN, and lease before you start, and begin 30 to 45 days before you plan to open.
Do I need a business license if I work from home?
Usually yes. A home address does not exempt you from the general license your city requires, and many cities also require a home occupation permit that sets limits on client visits, signs, and deliveries. Your lease or HOA rules are a separate, private layer on top of the city's rules. Check your city page here, then confirm the home occupation rules with your city before you rely on them.
Do I need a business license to sell online?
Yes, in most cases. Selling through Shopify, Etsy, or Amazon does not license you, because those platforms are marketplaces, not agencies. Your home city license and your state's seller's permit or sales tax registration usually still apply, even when the marketplace collects the tax on your sales for you.
Do I need a separate license for every location or city?
Generally yes. Licenses are issued by a specific jurisdiction and do not travel with you, so a second location usually needs its own license or registration in that city. Some cities soften this with a small branch fee instead of a full second license; Seattle, for example, charges $10 per branch location.
Where do I apply, and how do I know a website is the real government site?
Apply with the agency that issues the license, not a filing service. For our nine cities, start on your LicenseBeacon city page and follow its official link: Los Angeles (Office of Finance), San Francisco (Treasurer and Tax Collector), Philadelphia (the eCLIPSE portal), Seattle (the FileLocal portal), Atlanta (ATLCORE, through the Office of Revenue), Fort Worth (Accela Citizen Access), Nashville (Davidson County Clerk), Las Vegas (City of Las Vegas Business Licensing), and Miami (Miami-Dade County Tax Collector). Three checks keep you safe: the real site is a .gov address or is linked from one, the fee is payable to the agency itself, and free filings stay free, so if a site charges you for an EIN or a Philadelphia Commercial Activity License, it is not the government.
Renewals, updates, and closures
How often do I have to renew, and what does renewal cost?
Most general business licenses renew once a year, though some run two or three years and a few, like Philadelphia's Commercial Activity License, are lifetime licenses that never renew. In flat-fee cities the renewal usually matches the first year's fee. In gross receipts cities your renewal is recalculated from the new year's numbers, so it can rise or fall with your revenue. Professional licenses follow their own cycles and may add continuing education.
What happens if I miss my renewal deadline?
You will usually owe late penalties, and after a long lapse some agencies make you apply again from scratch. Missing a deadline can also cost you an exemption for the whole year: in Los Angeles, the small business exemption for businesses with $100,000 or less in worldwide gross receipts applies only if you register and file your renewal on time. Treat the renewal date as a hard deadline, not a suggestion.
What happens if I operate without a business license?
You risk back taxes for every period you operated, percentage penalties and late fees on top, and an order to stop operating until you are compliant. Day to day, the practical blocks often bite first, because banks, landlords, insurers, and marketplaces routinely ask to see a license. Criminal penalties are mostly reserved for licensed trades, such as working as an unlicensed contractor, but the financial cleanup is expensive either way.
A note on sources and limits
Every fee and rule behind these answers comes from the issuing agency's own published schedules, the same sources our calculators use. Even so, this page is general information, not legal, tax, or professional advice, and it cannot see the details of your situation. Fees and rules change, so check with the issuing authority, or a licensed professional who knows your circumstances, before you rely on any answer here.