Aspiring entrepreneurs to start a small business must solve many issues on time:

• register their local business;
• pay taxes;
• purchase or rent city premises;
• open a bank account;
• submit reports promptly, etc.

Most states have resources and links on the new business starting. Be sure to meet all the requirements.

If your retail business is located within the city, you will need to purchase business licenses and permits. Some counties and municipalities also require a business license. 

However, your city may not require a general business license. All businesses need to clarify this point in advance. We have performed a detailed analysis to make this task easier, performing the States-General Business License data. The article below offers comprehensive information regarding each state’s business license and local business requirements on getting other licenses.

General Business License: The Notion & Essence

In the United States, there are many types of individual entrepreneurship and businesses. These are different specialists involved in different types of business. It is about various professionals from electricians and plumbers to artesian drillers and car dealers.

They are all required by the state to obtain a local business license and other individual licenses for the activity. Each state has different laws, different requirements for licensing, various forms for obtaining licenses, and plenty of procedures for obtaining and waiting time.

A general business license is a type of universal licensing, the need for which is determined by each state independently. If the state of your residence makes such a requirement, then you must obtain this local license regardless of the nature of your business activity. If you neglect to obtain a general business license, the state will strip you of your right to conduct business/businesses and impose certain sanctions.

At the local level, you can obtain a business license from the Secretary of State. However, sometimes a general business license is available from the Department of Revenue. So, by paying annual taxes, you can get a business license.

In general, we can talk for a long time about licenses for business owners in America. There are many nuances and pitfalls about a business license of the local grade. Especially if you have several businesses of different types. However, for this guide, we will go into detail on the general business license that you must obtain at the local state level.

States Which Require Entrepreneurs to Obtain a General Business License: The Complete List

Most states do not require business owners to obtain a local business license. And yet, some states put forward different requirements about getting licenses. So, study the information below to understand the nuances of getting licenses in some states.

• Alabama. This state requires you to obtain a Business Privilege License. This claim of business license applies to all sole entrepreneurs, regardless of the nature of their businesses. Note: probate judge or license commissioner is responsible for a general business license and other licenses’ issuing. So, apply to your local county office;
• Alaska. The State of Alaska has general requirements for getting licenses for all businesses that are registered in the state. Apply here for more details on a general business license and other licenses;
• Delaware. Everything related to general licenses in Delaware, including filing local documents, is available on the official state business portal – OneStop;
• Hawaii. Any business owner in Hawaii must take care of obtaining the General Excise Tax License. Excise taxes in the United States are levied at the federal and local state levels. Business owners in Hawaii must apply to the Department of Taxation to obtain the local business license;
• Maine. Maine also requires a general business license for any type of business. However, the Secretary of State will not issue you this local license. Business owners need to contact the city. The Maine.gov Local Government portal will determine and provide a complete list of municipalities and their licenses;
• Maryland. A prerequisite for obtaining a general business license in Maryland is registration with the State Department of Appraisal and Taxation. The state pushes this licensing requirement to all businesses. Moreover, if you want to engage in activities that involve the acquisition of goods for their further resale, you will need to obtain a trader’s license;
• Nevada. To obtain a general business license to conduct commercial activities, entrepreneurs previously had to apply to the Department of Taxation of Nevada. At the moment, the secretary of state is responsible for issuing it. The easiest way to apply for obtaining or renewing this license is by contacting the SilverFlume portal;
• Tennessee. Business owners in Tennessee must keep a close eye on their annual sales. If it exceeds $ 10,000, they must obtain a Standard Business License. If your business’s sales range from $ 3,000 to $ 10,000, you need to take care of obtaining a Minimal Activity License. This business license requirement applies to the entire state, but you must contact your local county office to obtain a license;
• Washington. Any Washington State enterprise must obtain a business license. To determine and submit documents, renew an already received license, and for other business license details, you need to contact or visit the Business Licensing Service.

Each state has full licensing sovereignty over its territory. Besides, they have their system of executive, legislative and judicial power. That is why, when starting a local business, it is vital to check the requirements about licenses of your state! 

The state does not require participation in business licensing, so what should I do?

So, most states do not have national general requirements on licenses. However, there may be some difficulties to determine! Even if an entrepreneur does not need to obtain a general business license of the state grade, he may lack licensing from another level of local government.

It is because your city or county may have rules about licenses outside the jurisdiction of your state. Visit or contact the local government agencies in your city or county and find out what requirements for a general business license are put forward for you at the local level. 

Is it possible to apply to some service to get the required business licenses?

Yes, it is! Of course, this work requires maximum attention and knowledge of the nuances of a complex business licensing process. Therefore, many business owners choose to visit a reputable provider of this type of business service. So, you can get rid of unnecessary paperwork and save a lot of time!

Specialists of such services quickly identify which licenses are required to run your business. They strictly follow the requirements of all levels of government (including federal, municipality, and district). Next, they ask for relevant applications. All business owners need is to provide truthful information to complete these applications. 

Naturally, you will need to pay for the provision of such licensing services. However, this is a perfectly reasonable waste of money. Business owners are guaranteed that they have passed all the stages of the licensing they need and will work with official licenses and permits, which means they will avoid sanctions and fines. Today, Incfile and Swyft Filings are the leading providers of licensing services. Contacting them will cost entrepreneurs only $ 99.

However, you do not have to spend money on specialists and can go through all the stages of getting licenses yourself. At the same time, if your budget allows you to seek qualified assistance in licensing issues, you better do it!

Final Thoughts

So, most states will not oblige you to obtain a general business license. This licensing requirement is put forward by nine states only (all of them are listed above). However, even if your state does not require a general business license, you are better off contacting the state licensing board. There you’ll get qualified consultation on whether you comply with all requirements about licenses for your region and city.

It happens that the local government of your city or municipality puts forward requirements about licenses for your business. It is better to determine such nuances in advance. Otherwise, in the future, you’ll have to pay fines or even lose your business!