Every new U.S. business needs a specific set of registrations and permits before it can legally operate. There is no single national business license, so licensing works in layers — federal, state, county, and city — and most small businesses need at least a city or county general business license regardless of what else they file. The SBA confirms that most small businesses need a combination of licenses and permits from federal, state, and local agencies, with requirements varying by activity and location. Here is your starting checklist — ten items to secure or verify before you open your doors.

Your first-action checklist:

• ☑ Register your business entity with the Secretary of State (LLC, corporation, or other structure), or file a DBA/fictitious business name if you’re operating under a name other than your legal name
• ☑ Apply for an Employer Identification Number (EIN) from the IRS — required for corporations, partnerships, and any business with employees
• ☑ Obtain a city or county general business license (also called a business tax certificate or occupational license)
• ☑ Register for a sales tax permit / seller’s permit with your state Department of Revenue if you sell taxable goods or services
• ☑ Confirm zoning compliance and obtain a certificate of occupancy if you operate from a physical location
• ☑ Get a health department permit if your business handles food preparation or service
• ☑ Check for a state professional or occupational license if your trade is regulated (contractors, healthcare, cosmetology, real estate, accounting)
• ☑ Identify any industry-specific federal license that applies to your activity (ATF, USDA, FCC, FDA, DOT, EPA)
• ☑ Register for state payroll withholding, unemployment insurance, and workers’ compensation if you have employees
• ☑ Set up a renewals tracking system — a central spreadsheet or compliance calendar with every license name, issuer, renewal date, and fee.

Pro Tip: Start with your local city or county clerk before anything else. Local operating permission is the layer most likely to halt your business if it’s missing, and it often takes longer than you expect.

A practical federal, state, and local license checklist, covering items like general business licenses, EIN, DBA, zoning, health permits, and sales tax registration, is the foundation every new business owner needs before opening.

Key Takeaways

Licensing in the U.S. is layered across federal, state, and local agencies, and the local layer is the one most likely to halt operations if you skip it.

Table of Contents

• Which businesses need a federal license or permit?
• What state-level registrations does your business need?
• What local permits does your city or county require?
• How do you register for employer and tax accounts?
• Which industries commonly require extra licenses?
• How do you confirm your exact requirements and apply?
• What do licenses and permits typically cost, and how long do they take?
• How do you track renewals and avoid compliance mistakes?
• Why local-first compliance is the right starting point
• Myincteam handles formation and compliance so you can focus on your business
• Sources

Which businesses need a federal license or permit?

Federal licenses apply only to specific regulated activities. Most small businesses never need one. But if your work touches agriculture, alcohol, firearms, broadcasting, transportation, or certain food and drug manufacturing, a federal permit is mandatory before you operate.

According to the SBA, business activities regulated by a federal agency require a federal license or permit, and requirements vary by the issuing agency. Use the SBA’s federal-licenses table as your first filter.

Additional federal agencies to check:

• The IRS for tax-exempt status (Form 1023 for nonprofits) and employer tax registrations
• The FAA for commercial drone operations or aviation services
• The SEC for investment advisory or broker-dealer activities

Pro Tip: If your activity appears in the SBA’s federal-licenses table, go directly to that agency’s website to confirm current permit requirements and fees — agency pages are updated more frequently than third-party summaries.

What state-level registrations does your business need?

State requirements fall into three categories: entity registration, tax permits, and occupational licenses. Not every business needs all three, but you should check each one.

Step checklist for state compliance:

1. Check the Secretary of State — File your Articles of Organization (LLC) or Articles of Incorporation (corporation). If you’re a sole proprietor or general partnership operating under a trade name, file a DBA (doing business as) or fictitious business name at the county or state level, depending on your state’s rules.
2. Check the state Department of Revenue — Register for a sales tax permit (also called a seller’s permit) if you sell taxable goods or services. Economic nexus rules now mean that even out-of-state sellers with significant sales volume into a state may owe sales tax there.
3. Check state licensing boards — Many professions require a state-issued license before you can practice. Common examples include general contractors, electricians, plumbers, cosmetologists, nurses, physicians, real estate agents, and CPAs.

States vary widely in their approach. Some require a general statewide business license; many delegate licensing entirely to cities and counties. Most state-level regulation focuses on specific professions and sales tax registration rather than a blanket business license. Always check your specific state’s rules rather than assuming a national pattern applies.

Common state-regulated professions:

• Construction and specialty contractors
• Healthcare providers (physicians, dentists, therapists, nurses)
• Cosmetology and barbering
• Real estate agents and brokers
• Accountants and CPAs
• Insurance agents
• Childcare providers

Where to look:

• Secretary of State website (entity registration and DBA)
• State Department of Revenue (sales tax / seller’s permit)
• State licensing board search (profession-specific)
• SBA’s register your business page for a state-by-state overview

What local permits does your city or county require?

Local permits are where most businesses get held up. A city or county general business license is the baseline, but depending on your location and type of business, you may need several additional permits before you can open.

Typical local permits to check:

• General business license / business tax certificate — required by most cities and counties; this is a revenue-tracking mechanism and does not replace activity-specific permits
• Zoning verification / home occupation permit — confirms your location is zoned for your type of business; home-based businesses often need a separate home occupation permit
• Certificate of occupancy — required when you move into or renovate a commercial space; confirms the building meets safety codes for your use
• Health department permit — mandatory for any food preparation, food service, or food retail operation
• Fire department permit — required for businesses with public occupancy, flammable materials, or commercial cooking equipment
• Sign permit — needed before installing exterior signage on most commercial properties
• Street vendor or mobile food permit — required for food trucks, carts, and street vendors operating in public spaces

Confirm local rules through your city clerk, county clerk, local health department, and planning or zoning office. Many cities now offer online business portals that consolidate these requirements. For example, NYC Business Wizard walks New York City businesses through every local permit they need based on their specific activity and location.

Pro Tip: Ask your local zoning office for a written zoning confirmation letter before signing a lease. A verbal “that should be fine” from a clerk is not binding. A written letter protects you if zoning rules are disputed later.

How do you register for employer and tax accounts?

If your business has employees or sells taxable goods, you need specific registrations beyond your entity filing. These are separate from your business license and cannot be skipped.

EIN (Employer Identification Number): The IRS requires an EIN for corporations, partnerships, and any business with employees. Sole proprietors with no employees can use their Social Security Number for some purposes, but an EIN is strongly recommended for banking and tax purposes. The IRS start-up checklist covers EIN application alongside other core tax steps. You can apply online at IRS.gov and receive your EIN immediately. Non-resident founders without a Social Security Number can still obtain an EIN — see Myincteam’s guide on getting an EIN abroad for the exact process.

State employer registrations:

• Payroll withholding account — register with your state Department of Revenue or Department of Taxation to withhold state income tax from employee wages
• State unemployment insurance (SUI) account — register with your state workforce agency; rates vary by state and industry
• New-hire reporting — federal law requires employers to report new hires to the state within 20 days of the hire date

Workers’ compensation: Most states require workers’ comp coverage once you hire your first employee (some states exempt very small employers or specific industries). Coverage can be purchased through a private insurer or, in some states, through a state fund. Confirm your state’s threshold and rate requirements with your state’s Department of Labor or equivalent agency.

Sales tax account: If you sell taxable goods or services, register with your state Department of Revenue before your first sale. Economic nexus rules mean you may also need to register in states where you have significant sales volume, even without a physical presence there. For a full breakdown of which tax IDs your LLC needs and when, Myincteam’s tax ID requirements guide covers the specifics.

Which industries commonly require extra licenses?

Beyond the standard business license and tax registrations, certain industries carry additional permit layers. Here is a quick scan of the most common categories.

Industry-specific licenses by sector:

• Restaurant and food service — health department permit (local), food handler certifications, and potentially a food facility registration with the FDA if you manufacture packaged food
• Alcohol sales or manufacturing — federal Basic Permit or Brewer’s Notice from the TTB, plus a state Alcoholic Beverage Control (ABC) license and often a local license; alcohol licensing is among the slowest and most expensive permit processes
• Construction and contracting — state contractor’s license from the state contractors board, plus local building permits for each project; specialty trades (electrical, plumbing, HVAC) often require separate state licenses
• Commercial trucking and freight — USDOT Number and Motor Carrier (MC) Authority from the FMCSA for interstate operations; state-specific permits for intrastate hauling
• Agriculture and animal transport — USDA licenses for meat processing, organic certification, or interstate animal transport; state agriculture department permits for intrastate operations
• Firearms and ammunition — Federal Firearms License (FFL) from the ATF; state and local dealer permits in many jurisdictions
• Broadcasting and telecommunications — FCC broadcast station license for radio or TV; FCC authorization for certain wireless or satellite services
• Medical and pharmaceutical — FDA facility registration for drug or device manufacturing; state medical board or pharmacy board license for practitioners and dispensaries

Special cases worth noting:

• Interstate transport triggers federal DOT requirements that stack on top of state permits
• Businesses handling regulated chemicals or generating hazardous waste need EPA permits that vary by waste type and volume
• Multistate eCommerce sellers should audit economic nexus thresholds in every state where they have significant sales, since sales tax obligations can arise without any physical presence

How do you confirm your exact requirements and apply?

Start with three checks right now: Secretary of State → state Department of Revenue → local city or county clerk and health department. Then work through the steps below to build your complete, location-specific licensing checklist.

Step-by-step application process:

1. Define your business activities and NAICS code — your North American Industry Classification System code determines which regulatory categories apply to you
2. Check the SBA federal-licensing table — rule federal requirements in or out based on your activities
3. Check the Secretary of State — confirm entity registration status and DBA requirements
4. Register for state tax accounts — sales tax permit, payroll withholding, and unemployment insurance as applicable
5. Contact city and county clerk and health department — get a complete list of local permits required for your address and activity type
6. Apply online or by mail — note fees and processing times for each permit; many jurisdictions now accept online applications
7. Schedule required inspections — health, fire, and building inspections are often prerequisites before a permit is issued, not after
8. Set renewals and calendar reminders — log every permit with its renewal date before you file it away

Use SmallBizHandbook’s business license lookup to generate a personalized checklist by state and industry. It surfaces common requirements like EIN, general business license, state registration, DBA, and sales tax permit in one place.

Permit tracking template (column headers for your spreadsheet):

Pro Tip: When you apply for a local business license, bring your EIN confirmation letter, entity registration certificate, and a copy of your lease or property deed. Many clerks ask for all three, and having them ready cuts processing time significantly.

What do licenses and permits typically cost, and how long do they take?

Fees and timelines vary widely by jurisdiction and permit type. Here are realistic ranges to budget around.

Typical fee ranges:

• State entity filing (LLC or corporation): fees vary depending on the state, from lower amounts in some states to higher amounts in others
• City or county general business license: annual business license fees vary by city, with some basing fees on revenue
• Sales tax permit / seller’s permit: Free in most states; a handful of states charge a nominal registration fee
• State professional license: professional license fees depend on profession and state and may include exam fees
• Health department permit: health department permit fees for food service operations vary by facility size and local rates
• Liquor license: Highly variable; state licenses alone can range from a few hundred dollars to tens of thousands, and some jurisdictions cap the number of licenses issued, creating a secondary market

Typical processing timelines:

• EIN from IRS: Immediate when applied for online at IRS.gov
• State entity registration: 1–10 business days for standard filing; same-day or next-day for expedited processing in most states
• City or county business license: 1–4 weeks, depending on whether an inspection is required
• Health department permit: 2–6 weeks, including inspection scheduling
• State professional license: 4–12 weeks after passing required exams and submitting documentation
• Liquor license: liquor license processing times can be lengthy, often taking several months depending on the state and jurisdiction

Check your local government portal for exact processing estimates before you set your opening date.

How do you track renewals and avoid compliance mistakes?

Most local business licenses renew annually. Professional licenses often renew every 1–4 years. State entity reports (annual reports or biennial statements) follow their own schedule, which varies by state. Missing any of these can result in fines, license suspension, or administrative dissolution of your entity.

Common mistakes that cause problems:

• Assuming your EIN or state incorporation replaces local permits (it does not)
• Missing the local business license entirely because you focused on state and federal filings
• Ignoring zoning requirements for a home-based business
• Missing renewal deadlines because permits are stored in different places with no central log
• Failing to update permits after a change of address or business activity

Late renewals can cause fines or license suspension, and businesses should treat renewals as ongoing operational tasks rather than one-time completions.

Pro Tip: Keep a single folder (physical or digital) for every license, permit, and registration your business holds. Store the original certificate, the application receipt, any inspection reports, and the renewal notice together. When renewal time comes, everything you need is in one place.

Renewal tracking checklist:

1. Log every permit in a central spreadsheet the day it is issued
2. Set a calendar reminder 60 days before each renewal date
3. Note the renewal fee and payment method accepted by each agency
4. Track continuing education requirements for professional licenses separately
5. Review the full list quarterly to catch any permits that have lapsed or changed

For ongoing compliance support, Myincteam’s annual compliance service sends reminders and manages filings for non-resident LLC owners who need a managed workflow. A broader overview of what U.S. business compliance involves is also worth reviewing before your first renewal cycle hits.

Why local-first compliance is the right starting point

Most founders focus on federal and state filings first because those feel official. The IRS, the Secretary of State, the EIN — these have weight. But the permit most likely to shut your business down on day one is the local business license or the zoning approval you never confirmed.

Local enforcement is immediate and physical. A city inspector can post a closure notice on your door. A state tax authority sends letters for months before anything serious happens. That asymmetry matters when you’re deciding where to spend your first compliance energy.

My working rule: get your local operating permission and tax registrations in place before you hire anyone or sign a lease. The baseline set of documents you need before any of that — EIN, entity registration, local business license — takes less time to assemble than most founders expect, especially if you use online portals and come prepared with your entity documents.

One more thing that often gets overlooked: many permits require proof of liability insurance or workers’ compensation coverage as a condition of issuance. Check insurance requirements at the same time you check permit requirements, not after.

Myincteam handles formation and compliance so you can focus on your business

Formation and compliance paperwork is manageable when you know exactly what’s required. For non-resident founders, the process has one extra layer: getting an EIN without a Social Security Number, navigating state selection, and keeping up with annual filings from outside the U.S.

Myincteam offers full-service support for exactly this situation: state LLC or C-Corp formation, EIN application for non-residents, registered agent service, annual compliance reminders, and reinstatement for administratively dissolved entities. No U.S. address or residency required. If you’re building a U.S. business from abroad and want the formation and compliance handled correctly from the start, Myincteam’s formation services are the practical next step.

Sources

Use these primary sources to confirm and apply for every license and permit your business needs.

Federal resources:

• Checklist for starting a business | Internal Revenue Service
• Business License Lookup by State & Industry (2026) — SmallBizHandbook
• Starting a Business: License and Permit Checklist – FindLaw
• How to Get a Business License for Your LLC (2026)

State-level resources:

Local resources:

Lookup tools:

Recommended

• U.S. Business Compliance Tips for Non-Resident Owners
• How to Launch a U.S. Corporation: Step-by-Step Guide
• 10-Step Foreign Founder Incorporation Checklist – MyInc Team LLC
• US Business Formation: Essential Steps for Non-Residents