Start with your activity and location. Federal licenses apply only to certain regulated activities. Your state may license your profession or trade. Your county and city may require a general business license or business tax receipt. Search each agency, write down what applies, and call when in doubt.
Levels to check
| Level | Examples | Where to look |
|---|---|---|
| Federal | Alcohol, firearms, aviation, certain transport | SBA federal license list |
| State professional | Contractors, cosmetology, health care | State licensing board |
| State general | Sales tax permit, food establishment | State revenue and health departments |
| County/city | Business tax receipt, local license | City or county business office |
A research routine
- Write your exact activities. "Mobile hair styling" is regulated differently from "salon".
- Check the state licensing board for your profession or trade.
- Check state revenue for sales tax or other registrations.
- Check your county and city business license or tax office.
- Write it all down with renewal dates in a tracker.
Industry guides
Our industry playbooks list the agencies to research for 20 common small businesses.
Worked example
A new home cleaning company checks state, county and city levels. The state has no cleaning license, but the county requires a business tax receipt and the city requires a business license. The state revenue department confirms cleaning services are not taxable in her state but product sales would be. She records each answer with the agency, date and fee.
Common mistakes
- Checking only the state level
- Assuming online businesses need no local license
- Missing professional licenses for specific services
- Letting renewals lapse
A script for calling the licensing office
"Hi, I'm starting a residential cleaning business at this address, working in clients' homes with no storefront. Which licenses or business tax receipts do I need from the city or county, what do they cost, how long do they take and when do they renew? Is there anything else I should ask the state about?" Write down the answers, the date and the name of the person you spoke with, and save links to the official pages they mention.
Common questions
Do I need a business license to work from home?
Many cities still require a business license or home occupation permit for home-based businesses. Check your city.
What happens if I operate without a license?
Penalties vary and can include fines or closure. Check before you open.
What if two agencies give different answers?
Ask for the requirement in writing or note the name and date of the person you spoke with, and follow the stricter answer until it is clarified.
Do licenses transfer if I buy a business?
Often not; many licenses are issued to the owner or entity and must be applied for again.
Sources
Sources checked October 6, 2026. Rules, fees and forms change; confirm details with the agency or provider before you act. This guide is general information, not legal, tax or insurance advice.
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