The short answer: there is no single national business license in the United States. What you need is set at three levels — federal, state, and local — and the local general business license is required in most places. Below is how the system fits together and how to find the exact permits for your business.
Direct answer
In 2026 most businesses need (1) a local general business license from their city or county, (2) a state sales-tax permit if they sell taxable goods or services, and (3) state professional/occupational licenses for regulated trades. A few states (notably Nevada) also require a state-level business license for entities formed or qualified there. Federal registrations like an EIN are separate from licensing.
The three layers of business licensing
| Layer | What it covers | Typical issuer |
|---|---|---|
| Federal | EIN (tax ID), trademarks, industry-specific federal permits (FDA, FAA, FCC, ATF) | IRS, USPTO, relevant federal agency |
| State | Sales-tax / reseller permit, professional & occupational licenses, employer withholding & unemployment registration | State Department of Revenue, licensing boards, Secretary of State |
| County / City | General business license, zoning & home-occupation permits, health permits (food) | City or county clerk |
Common license types you may need
- General business license — issued by your city or county; the most universal requirement. Fees vary widely by jurisdiction (often modest for a small business, higher in large cities) and are set locally.
- Sales-tax permit (seller's permit) — required by the state if you sell taxable goods or services; free or low-cost to obtain but carries filing obligations.
- Professional / occupational license — required by state boards for regulated trades (contractors, cosmetologists, real estate, medical, legal, accounting, etc.).
- DBA / assumed name — registration of a trade name, usually at the county or state level.
- Employer registrations — federal EIN plus state withholding and unemployment (SUTA) accounts once you hire.
- Zoning & health permits — for a physical location, home occupation, or food service; issued locally.
How to find the exact requirements for your business
- Check your city or county clerk for the local general business license and zoning/home-occupation rules — this is the step most often missed.
- Check your state Secretary of State and state business portal for sales-tax permits, professional licenses, and employer registrations.
- Confirm industry-specific federal permits if you operate in a regulated space (food, alcohol, firearms, broadcasting, transportation, etc.).
- Re-check annually — fees, thresholds, and even which licenses apply can change at every level of government.
Frequently Asked Questions
Is there one business license I need for every state?
No. The U.S. has no federal or national "general business license." Nearly every business needs a local (city or county) general business license, and specific industries need state licenses — but the exact mix depends on where you operate and what you sell. There is no single permit that covers all 50 states.
Which level of government issues my business license?
It is layered. The general business license is almost always issued by your city or county clerk. Sales-tax permits and professional/occupational licenses are issued by the state. A few states (Nevada, for example) also require a state-level business license for entities formed or qualified there. Federal registrations (EIN, trademark) are separate from licensing.
Do I need a license if I sell online only?
Often yes, at the local level if you have a physical location or home office in a jurisdiction that requires it, and at the state level if you sell taxable goods or services (a sales-tax permit). Some home-based and online-only businesses are exempt from a local general license, but the rule is set locally — check your city/county clerk.
Where do I check the exact requirements for my state and city?
Start with your state Secretary of State and the state "business portal," then your city or county clerk for the local general license. Because requirements and fees change, confirm against the official source for your specific location before you rely on any summary.
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