Every state is different in how business licenses are handled. While it’s true that most businesses will need a license to legally operate in their established state, it’s important to understand the differences between each state.
In states that don’t require a business license, there are still requirements that must be adhered to. Explore each of the following to see what your state’s requirements are for business licenses. In addition, check out our guide to how to start a business, too.
Business License Regulations by State
Alabama
In Alabama, you will need to acquire a privilege license. Depending on which county the business is located in, you can buy these licenses by going through the county Probate Judge or License Commissioner.
What’s more, your business may need to have several business licenses depending on what services are offered. You can contact your license commissioner if you need help determining the licenses your business requires.
Alaska
Any business in Alaska is required to have an Alaska business license. This can be obtained by going through the Division of Corporations, Business and Professional Licensing.
Arizona
Not all businesses in Arizona are required to have a business license, yet some businesses need to have more than one. As such, there isn’t a standard business license that covers all operations.
What’s more, each city that you do business in may have unique license/permit requirements. Contact the city office where your business is based and operates for more information on local requirements.
Arkansas
Arkansas does not have a standard state business license. As such, you will need to obtain a business or privilege license. These are issued by the local government.
If you wish to apply for a business license, visit the City Planning or Zoning Office where your business is located. If you’re outside city limits, you will need to contact the Clerk's Office or County Collector.
California
California does not have a standard state business license.
Regardless of the size of your business, all California businesses are required to obtain a business license. You can do this either through the city hall or your city’s local offices.
Colorado
Colorado does not have a standard state business license. As such, you will need to contact the Clerk's Office.
Connecticut
Connecticut does not have a standard state business license. As such, you will need to obtain one through the City Licenses and Inspections Division.
DC
Most DC businesses are required to have a new Basic Business License. You will therefore need to file for one by visiting the Department of Consumer and Regulatory Affairs. They will be able to help you determine the license requirements that apply to your business.
Delaware
All Delaware businesses are required to have a business license. These can be obtained through the Delaware Division of Revenue. Business licenses also apply to Delaware-based businesses that operate outside of the state.
What’s more, you must have your business license prior to opening your doors to the public. Your local government offices can help you with your business’s requirements.
Florida
If you need to apply for a Florida business license or you need more information on license requirements, visit the Florida Department of Business and Professional Regulations Application Center.
Most counties in Florida require you to have a business license and business tax receipt. You may contact your local tax collector’s office for more information on your business’s requirements.
Georgia
Georgia does not have a standard state business license.
Most businesses in Georgia are required to obtain a business license. You can do this through your city’s Finance Division.
Hawaii
If you need to apply for a Hawaii business license or you need more information on license requirements, visit the Hawaii Business Action Center.
Idaho
A Regulatory Requirements Wizard is offered by the state of Idaho that is designed to help you determine the state and local licensing requirements that pertain to your business.
Illinois
Although there isn’t a standard state business license in Illinois, the cities of Chicago, Naperville, Rockford, and Springfield require local business licenses.
Indiana
Indiana does not have a standard state business license. However, most cities require licenses or permits, but only for some businesses. You will need to check with your local Licensing Division for your business’s requirements.
Iowa
Iowa does not have a standard state business license. As such, you will need to check with your local city clerk’s office for your business’s license requirements.
Kansas
Kansas does not have a standard state business license. As such, you will need to check with your local city clerk’s office for your business’s license requirements.
Kentucky
Kentucky does not have a standard state business license. However, most cities require licenses or permits, but only for some businesses. You will need to check with the state of Kentucky’s website for your business’s requirements. You can find this by using the website’s Local Requirements database.
Louisiana
The Louisiana Secretary of State offers geauxBIZ, a licensing info center that’s designed to help small business owners. For any regulatory data associated with your business, you’ll want to use geauxBIZ. Your business license, however, will still need to be obtained from state agencies.
Maine
Maine does not have a standard state business license. Visit the Maine.gov Local Government portal for more information on obtaining your business license.
Maryland
The Maryland Department of Business and Economic Development put together a comprehensive list of state licenses to help you determine your business’s license requirements. You can find this on their website for more information.
Massachusetts
The Massachusetts Consumer Affairs and Business Regulation office can help you better determine the license your business needs to operate. You may then contact your local clerk for information on how to obtain your license.
Michigan
Michigan requires a state business license. However, this only applies to some businesses. You can look on Michigan’s state website for an Alphabetical List of Michigan Licenses and Permits. You may then contact your local city clerk’s office for information on how to obtain your business license.
Minnesota
Minnesota requires a state business license for some businesses. You can look on Minnesota’s state website for an Alphabetical List of necessary licenses. You may then contact your local city clerk’s office for information on how to obtain your business license.
Mississippi
Some businesses operating in Mississippi may need to register for tax-specific ID numbers, permits, or licenses.
To determine your local business license requirements, contact your city’s License Division. They are responsible for issuing business licenses.
Missouri
Missouri does not have a standard state business license. However, most cities require licenses or permits, but only for some businesses. You will need to check with the License Collectors office at City Hall for your business’s requirements.
Montana
Montana doesn’t have a standard state business license. You can look on Montana’s state website for an Alphabetical List of Montana Licenses and Permits. You may then contact the Revenue Division at City Hall for information on how to obtain your business license.
Nebraska
Nebraska doesn’t have a standard state business license. You will need to contact the Licensing Division for information on how to obtain your business license.
Nevada
All Nevada businesses are required to have a state business license. Applications for all state business license applications are handled by the online entity, SilverFlume.
New Hampshire
While counties do not have licensing requirements, some cities do.
You will need to visit New Hampshire’s Licensing and Permits office for your business’s state license requirements.
New Jersey
Most New Jersey counties require you to register your business. You can do this through the New Jersey Business Action Center, which also provides licensing requirement information.
New Mexico
New Mexico does not have a standard business license. However, most cities require you to register your business. You will need to visit the Regulation and Licensing Departments' website for more information on how to register.
New York
New York doesn’t have a standard state business license. You will need to use the Business Wizard that is offered by the state of New York. This is designed to help you determine the state and local licensing requirements that pertain to your business.
North Carolina
There isn’t a standard business license in North Dakota, although most cities require you to have a general business license. For more information on your business requirements, you will need to contact the Licensing Office at City Hall.
North Dakota
Not all North Dakota businesses are required to have a business license. However, some businesses must have more than one. To help you determine the type of license your business may need, you will need to contact the Business Licensing office at local City Hall.
Ohio
Ohio does not have a standard state business license for all businesses, but it does have a state-required business registration, which comes with a registration certificate that essentially acts like a license. You will need to visit the Department of Business, Licensing, and Permits for information on how to obtain your business license.
Oklahoma
Only some Oklahoma businesses are required to have a business license. You will need to contact your local city clerk’s office for information on how to obtain your business license.
Oregon
Visit the Oregon License Directory for more information on your business’s license requirements.
Pennsylvania
Pennsylvania does not have a standard state business license for all businesses. You will need to contact your local city clerk’s office for information on how to obtain your business license.
Rhode Island
Rhode Island does not have a standard state business license for all businesses. You will need to visit the state of Rhode Island business license website to help you determine your business license requirements.
South Carolina
Most South Carolina businesses are required to have a license. You can find out which licenses your business needs by visiting the online South Carolina Business Portal.
South Dakota
You can find business license requirements by visiting the South Dakota Governor’s Office of Economic Development. There, you will find a guide that details requirements for state business licenses.
Tennessee
Businesses in Tennessee that gross more than $3,000 are required to have a business license. You may do this by going through your county clerk's Office.
Texas
Texas does not have a standard state business license for all businesses, although some have certain requirements. Instead, you will need a local business license. You will need to check with the Business License office at local City Hall to help you determine your business license requirements.
Utah
Utah does not have a standard state business license that applies to all businesses. Instead, you will need a local business license. You will need to check with the Utah Department of Commerce’s Business Licensing and Registration Guide to obtain your local business licenses.
Vermont
All Vermont businesses will need to contact the city clerk’s office for more information pertaining to license requirements.
Virginia
Virginia does not have a standard state business license. However, most cities require licenses or permits, but only for some businesses. You will need to check with the Commissioner of the Revenues office at City Hall to obtain your local business licenses.
Washington
All Washington businesses must have a state business license. You may obtain an application through the online entity, Washington Business Licensing Service.
West Virginia
Most businesses in West Virginia require a local business license to operate.
Business for West Virginia has developed a comprehensive list of businesses that require state business licenses.
Wisconsin
There isn’t a standard state business license for Wisconsin that applies to all businesses. As such, you will need to contact your local clerk’s office so that you can fill out an application.
Wyoming
There isn’t a standard state business license for Wyoming that applies to all businesses. As such, you will need to contact your local clerk’s office so that you can fill out an application.
Other Reliable Business Formation Services
If you need professional legal assistance when setting up a business, check out following formations services and registered agents services:
Nolo
Nolo is a renowned company that remains an active force in the industry and continues to serve people with legal assistance and legal document requirements from all over the country. If you're looking for a personal service through phone, Nolo isn't the service to call upon for your business creation needs.
Rocket Lawyer
Their expertise and user-friendly interface will win you over. With exceptional customer service, this is the type of company you hope to do business with. There are two ways to get support – through their website of their nifty app. Whichever you prefer, Rocket Lawyer will make sure to meet your requirements.
ZenBusiness
Compared to other services, ZenBusiness gives you more value for your money. They make the entire process of company formation straightforward and ar not looking to charge you additional services - give them essential information about your company, and they will do the rest.
IncFile
Incfile is one of the most affordable online services, extremely reliable, and they bring to the table great deal of features that are needed when starting a business. To top it off, IncFile offer their services for free with their starting package which is nothing short of incredible.
Summary
Be sure to contact your local government offices if you need more information on how to apply for your local business license. Not all states are the same, so it’s important to be clear on your state’s regulations before proceeding.