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Most state and local governments require that any person or company operating commercially
must get a business license, usually at the local or county level. If you live within the boundaries
of a city or town, check your local government website for specific requirements. If you live in an
unincorporate area outside of a city or town, then check with your county government. If you plan to
start a corporation, visit your state government website.
Depending on the form of business, the industry, the type of activity involved and the location,
the process for obtaining a business license can be very simple for small businesses or very
complex for large companies. In many places, especially small towns, the process can be a registration
and fee for a sole proprietor or it can be a stack of paperwork for a company with multiple divisions.
In some places a business license may not be required at all to work as an independent contractor.
Some people may confuse business licenses with professional certifications. A business license gives
you permission to run a business for profit whereas a professional certification is one of many
steps required to advance in a specialized field, but it doesn't grant you authority to run a business.
If you are doing business as your own legal first and last name, you do not necessarily need
DBA ("doing business as") registration. But if you choose a different name for your business, you
will likely have to register that DBA at your County Records office in addition to getting a business
license.
Failing to obtain proper business licensing and DBA registration can lead to fines
and other penalties implemented by various government agencies.
