Frequently Asked Questions

Question 1

Do I need licenses for my business?

Accepted Answer

You'll most likely need a general business license to legally operate your business and comply with some of your local, county, state, and federal requirements. However, obtaining a general business license is just the beginning. Depending on your industry, location, and specific business activities, you may need additional licenses and permits. On average, our business license customers require an average of five different licenses to operate legally.

Question 2

When do I need a business license?

Accepted Answer

You typically should get every general business license or permit you need before you start operating your business or open your doors to the public. Otherwise, you could face fines and other penalties. Once you have your permits, it’s important to display them properly, make copies for your records, and keep track of renewal dates.

Question 3

Who issues business licenses?

Accepted Answer

They're issued by all levels of government—city, county, state, and federal—so you might need to apply with various agencies and departments. Our service makes that part easy by finding the permits you need at every governmental level and providing easy access to apply.

Question 4

Why are business licenses required?

Accepted Answer

There are two common reasons: A business license helps protect the public's health and safety and identifies businesses so they can be held accountable for their actions. To cover each of these requirements, most businesses have multiple licenses, especially in more complex industries such as transportation.

Question 5

Do all businesses need licenses?

Accepted Answer

Most small businesses will need at least five, and determining which licenses you need for your business and location can be complicated. Fortunately, our service helps make this easier for you.

Question 6

What are some common licenses and permits?

Accepted Answer

Common examples include a home occupation permit, zoning permit, building permit, seller's permit, fire and police department permit, and health permit.

Question 7

What is a seller's permit?

Accepted Answer

A seller's permit, also known as a sales tax permit, is a state-issued license that allows your business to collect sales tax from customers on taxable sales. This permit is essential for any business that sells physical goods, either in person or online. With a seller's permit, you can legally collect sales tax, which must be remitted to the state to comply with tax regulations.

Question 8

What business licenses do I need?

Accepted Answer

It depends what kind of business you run and where you're located. We can make this easier by determining this for you based on your business info.

Question 9

How much does a business license cost?

Accepted Answer

Our service to help you find which licenses and permits you may need costs $99/year, but the cost of the individual business license fees and application varies, depending on where you are, the type of business you operate, and the permit you need. One license may cost nothing while others can get quite expensive. Keep in mind that securing the required licenses is necessary to protect your business from fees, penalties, and potential closure.

Question 10

Do I need a license to operate my business from home?

Accepted Answer

It depends on the type of business you run and where you're located. In many locations, you may need a home occupation permit. Running your business out of your home doesn't necessarily exempt you from needing certain licenses or permits and may result in additional requirements.

Question 11

Do I need a business license to sell online?

Accepted Answer

Whether you need a business license to sell online depends on your product, service, and location. Generally, business licenses like a seller's permit or a sales tax permit are required for online sellers. 
Business licensing rules vary between states and cities and the sale or transport of specific items may be subject to additional regulations.

Question 12

Do you need a business license to sell on Etsy?

Accepted Answer

If your Etsy operation is a business as determined by the IRS, you will likely need business licenses as required by the state, county, and local government agencies in your specific location. Generally, business licenses like a seller's permit or a sales tax permit are required for online sellers. 
Business licensing rules vary between states and cities and the sale of specific items may be subject to additional regulations. We can help you figure out what your Etsy business needs.

Question 13

What do I need to do to stay compliant with business licenses and permits on an ongoing basis?

Accepted Answer

Managing business licenses involves maintaining up-to-date records of all licenses, tracking expiration dates, promptly renewing licenses before they expire, and ensuring compliance with relevant regulations. You'll also need to monitor for any changes to your licensing requirements and respond accordingly to avoid penalties or disruption to your business. Our Business License Report & Management service helps ensure you meet these requirements and keep your business operating legally.

Question 14

Why choose LegalZoom for business licenses?

Accepted Answer

LegalZoom ensures you go beyond just obtaining a general business license. We provide a customized and personalized report identifying all the specific licenses and permits required for your unique business venture.  
Our comprehensive approach helps ensure that you meet the legal requirements tailored to your industry and operations, giving you peace of mind and helping you avoid costly penalties. We can offer you a complete solution, including: 
Renewal reminders: Get timely notifications when renewal deadlines approach so you never miss a deadline. 
Jurisdiction updates: Receive updates and notifications of any changes to your report based on changes in your jurisdiction. 
Centralized management: Manage all your licenses and permits from one convenient place, simplifying your business operations. 
Choose LegalZoom for a tailored, efficient, and reliable licensing solution that helps keep your business compliant and running smoothly.

Question 15

What is LegalZoom's License Report & Management, plus Compliance Filings?

Accepted Answer

Keeping your business compliant is critical to maintaining good standing and avoiding penalties. With License Report & Management, plus Compliance Filings, you get everything you need to identify, secure, and maintain required business licenses—along with ongoing compliance support to keep your business up to date. 
Here’s what’s included: 
Custom report of required federal, state, and local licenses, permits, and registrations. 
Details about each license, permit, and registration, and why they’re important to your business. 
Direct access to required applications, simplifying the filing process. 
Secure document storage to upload, view, and download business licenses. 
Expiration alerts and updates on new license report requirements. 
Annual reports to satisfy ongoing state filing requirements (where applicable). 
Amendment filings with the Secretary of State for any business changes. 
Personalized compliance alerts and dedicated support from experienced specialists. 
Filing of your Beneficial Ownership Information Report (BOIR) and ongoing updates to stay compliant. 
Attorney-tracked updates on changing federal and state filing requirements. 
100% Accurate Filing Guarantee†

Save time finding and managing the business licenses you need

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