How do I get a business license?

Most businesses need at least one license or permit to operate legally — typically a general business license from your city or county, plus any state-level professional or industry licenses your type of work requires. There is no single federal business license; requirements depend on your location, industry, and entity type.

"A business license" is shorthand for a collection of permits that can span three government levels: federal, state, and local. Most small businesses don't need a federal license (it's reserved for regulated industries), but nearly all need something at the state or local level. The SBA's business license guide is the official starting point for identifying what applies to your situation.

Federal licenses — only for regulated industries

A federal license or permit is required only if your business activity is regulated at the federal level. Examples include alcohol production and sales (TTB), firearms and ammunition (ATF), broadcasting (FCC), aviation (FAA), and certain agricultural operations (USDA). If you're a restaurant, retailer, consultant, contractor, or service provider in a non-regulated industry, you almost certainly do not need a federal license.

State licenses — two types to check

General state business license — some states require all businesses to register for a general operating license at the state level (separate from entity formation). Check your state's Secretary of State or Department of Revenue website.
Professional/occupational license — if you or your employees are in a regulated profession (contractor, electrician, cosmetologist, real estate agent, medical professional, etc.), a state-issued occupational license is required. These are issued by state licensing boards and often involve exams, training hours, or background checks.

Local licenses and permits — most commonly required

General business license — most cities and counties require a local business license renewed annually. Fees are typically modest ($25–$500 depending on jurisdiction and business size).
Zoning and land-use permits — if you operate from a physical location, your use must be permitted under local zoning rules. Home-based businesses often face additional restrictions.
Signage permits — exterior signs typically require a permit from the local planning or building department.
Health permits — food service businesses, gyms, and childcare facilities typically require local health department approval.
Building/fire safety permits — required if you're occupying, renovating, or building commercial space.

How to find your specific requirements

The SBA's Business Licenses & Permits tool lets you filter by state and business activity to find the most relevant requirements. USA.gov's business licenses page provides a complementary directory organized by state. For professional licenses, search your state's name + the profession + "licensing board" to find the relevant agency. When your business is licensed and operating, apply with ClearValue Lending to explore small-business financing — most lenders will ask for a copy of your business license as part of the application package.

SBA & USA.gov on business licensing

Most businesses need a combination of federal, state, and local licenses and permits to operate, but the exact requirements vary by location, industry, and business activity. — SBA — Apply for Licenses and Permits
Federal licenses are required for businesses in industries regulated by a federal agency — including agriculture, alcohol, aviation, firearms, fish and wildlife, maritime transport, mining, nuclear energy, radio and TV broadcasting, and transportation. — SBA — Apply for Licenses and Permits
USA.gov provides a directory of state-level business license resources to help business owners identify their specific requirements by state. — USA.gov — Business Licenses

Key takeaways

Most small businesses don't need a federal license — it's only for federally regulated industries like alcohol, firearms, and aviation.
Check your state for both a general business license and any occupational/professional license required for your field.
Nearly all businesses need a local city or county license — look up your city or county government's business licensing office.
Use the SBA's free Licenses & Permits tool at sba.gov and USA.gov's state directory to find your specific requirements.
Keep licenses current — lenders typically request a copy during underwriting, and expired licenses can delay or block approval.