Lookup · 2026
Do I need a business license? Every state’s rule
In most states there is no single statewide business license. Licensing comes from your city or county, and from a state board if your trade is regulated. A few states do have a general license for every business. Here is each state’s rule.
In short
- Most states have no general state business license.
- Alaska, Delaware, Nevada, Washington, West Virginia and Washington, DC, have a general state license. Alabama, Hawaii and Tennessee have their own versions.
- Almost everywhere, your city or county can require its own license.
- A regulated trade or profession needs a license from the state board that oversees it.
Three places a license can come from
- The state. A few states license every business. Most don’t.
- Your city or county. Many local governments license the businesses in their area, or charge a local business tax.
- A state licensing board. Regulated work, such as contracting, health care or real estate, needs a license from the board that oversees it.
Does an LLC need a business license?
Forming an LLC registers the business with the state. It isn’t a license to operate. The LLC still needs whatever license its state, its city or county, and its trade require. How much does an LLC cost? lists each state’s LLC fees.
Does the S election change it?
No. Licensing follows the business and its work, not how the IRS taxes the owner. An LLC taxed as an S corporation keeps the same licenses.
Business licenses by state
Whether each state has a general business license, who licenses instead, and the official page.
| State | General state license | Official page |
|---|---|---|
| Alabama | Yes. The county issues a state and county privilege license. The fee depends on the activity. | Official page |
| Alaska | Yes. A state business license costs $50 a year. | Official page |
| Arizona | No. Most cities and towns issue their own business licenses. | Official page |
| Arkansas | No. Cities license, and state boards license regulated trades. | Official page |
| California | No. The city or county licenses, and some activities need state permits. | Official page |
| Colorado | No. Cities and counties license, and the state licenses regulated occupations. | Official page |
| Connecticut | No. Licenses depend on the business type, and the business registers with its town. | Official page |
| Delaware | Yes. A state business license, generally $75 a year for the first location. | Official page |
| District of Columbia | Yes. A Basic Business License. The general license costs $99 for 2 years. | Official page |
| Florida | No. Counties and cities issue local business tax receipts, and the state licenses professions. | Official page |
| Georgia | No. Cities and counties license, and the state licenses some trades. | Official page |
| Hawaii | Yes. The $20 GET license serves as the general business license. | Official page |
| Idaho | No. Cities and counties may require a local license. | Official page |
| Illinois | No. Cities and counties set local rules, and the state licenses professions. | Official page |
| Indiana | No. Some activities need state licenses, and some cities and counties license. | Official page |
| Iowa | No. Licensing depends on the business type, and cities may add rules. | Official page |
| Kansas | No. State agencies license some industries, and cities and counties license locally. | Official page |
| Kentucky | No. Some business types need a state license, and local governments may license. | Official page |
| Louisiana | No. Parishes and cities issue occupational licenses, and some trades need a state license. | Official page |
| Maine | No. Towns and cities license, and the state permits some professions. | Official page |
| Maryland | No. But most sellers of goods need a trader’s license from the county court clerk. | Official page |
| Massachusetts | No. Cities and towns handle local licensing. | Official page |
| Michigan | No. Some occupations need a state license, and local governments may license. | Official page |
| Minnesota | No. The state licenses regulated activities, and some cities and counties license. | Official page |
| Mississippi | No. Cities and counties license, and state boards license some professions. | Official page |
| Missouri | No. Cities and counties issue occupation licenses. | Official page |
| Montana | No. Cities and counties license, and the state licenses some professions. | Official page |
| Nebraska | No. Cities and counties may levy occupation taxes or require licenses. | Official page |
| Nevada | Yes. A state business license costs $200 a year, or $500 for corporations. | Official page |
| New Hampshire | No. Businesses register with the state, and some activities need a tax license. | Official page |
| New Jersey | No. Licenses come by industry and town. State registration is free. | Official page |
| New Mexico | No. The state licenses some business types, and cities and counties license. | Official page |
| New York | No. The state licenses some business types, and many localities require licenses. | Official page |
| North Carolina | No. Licensing is by occupation, and a city or county may require a license. | Official page |
| North Dakota | No. The state licenses some occupations, such as contractors. | Official page |
| Ohio | No. State agencies license by industry, and counties and cities may license. | Official page |
| Oklahoma | No. Licenses depend on the activity, and local governments may require one. | Official page |
| Oregon | No. Many activities need a state license, and cities and counties may license. | Official page |
| Pennsylvania | No. Licenses depend on the activity, and some cities require their own. | Official page |
| Rhode Island | No. Licenses depend on the activity, and cities and towns license locally. | Official page |
| South Carolina | No. Counties and cities issue business licenses. | Official page |
| South Dakota | No. State agencies license specific activities, and cities may add rules. | Official page |
| Tennessee | Yes. With receipts over $3,000, the county or city clerk issues a $15 license under state law. | Official page |
| Texas | No. Some activities need an agency license. | Official page |
| Utah | No. The city, town, or county issues the business license. | Official page |
| Vermont | No. Some towns and cities license locally. | Official page |
| Virginia | No. Cities, counties, and towns may require a local business license. | Official page |
| Washington | Yes. A $50 state license, required if, for example, the business collects sales tax or hires. | Official page |
| West Virginia | Yes. A $30 state business registration certificate, which also covers sales tax. | Official page |
| Wisconsin | No. The state issues tax permits, and cities and counties may license locally. | Official page |
| Wyoming | No. Licenses depend on the business purpose and the city. | Official page |
See what an S election would add or save for your business.Profit, state and salary. Two minutes, nothing sent anywhere.
Open the check Sources
Sources: 59 official pages
- Alaska: business licensing
- Alaska: business licensing
- Alabama: business licensing
- Arkansas: business licensing
- Arizona: business licensing
- California: business licensing
- Colorado: business licensing
- Connecticut: business licensing
- Connecticut: business licensing
- District of Columbia: business licensing
- District of Columbia: business licensing
- Delaware: business licensing
- Florida: business licensing
- Georgia: business licensing
- Hawaii: business licensing
- Iowa: business licensing
- Idaho: business licensing
- Illinois: business licensing
- Indiana: business licensing
- Kansas: business licensing
- Kentucky: business licensing
- Louisiana: business licensing
- Massachusetts: business licensing
- Massachusetts: business licensing
- Maryland: business licensing
- Maryland: business licensing
- Maine: business licensing
- Michigan: business licensing
- Minnesota: business licensing
- Missouri: business licensing
- Missouri: business licensing
- Mississippi: business licensing
- Montana: business licensing
- North Carolina: business licensing
- North Dakota: business licensing
- Nebraska: business licensing
- New Hampshire: business licensing
- New Jersey: business licensing
- New Mexico: business licensing
- Nevada: business licensing
- New York: business licensing
- Ohio: business licensing
- Oklahoma: business licensing
- Oregon: business licensing
- Pennsylvania: business licensing
- Rhode Island: business licensing
- South Carolina: business licensing
- South Dakota: business licensing
- Tennessee: business licensing
- Texas: business licensing
- Utah: business licensing
- Virginia: business licensing
- Virginia: business licensing
- Vermont: business licensing
- Washington: business licensing
- Washington: business licensing
- Wisconsin: business licensing
- West Virginia: business licensing
- Wyoming: business licensing
Every figure was read on an official page and checked a second time. Checked October 24, 2026. How we check facts.
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