What is Business License? Definition, requirements, and how it applies to your business formation. Learn everything about business license for LLCs and corporations.
# Business License
A business license is a permit issued by a government agency (city, county, or state) that authorizes a business to operate within that jurisdiction. Requirements vary dramatically by location and industry — some businesses need multiple licenses from different agencies, while others need none beyond their entity formation.
Business licenses are separate from entity formation. Forming an LLC does not automatically grant you permission to operate — you may still need local business licenses, industry-specific permits, sales tax permits, and professional licenses depending on your location and activity.
Lovie's post-formation checklist identifies the business licenses and permits required for your specific industry and location, so nothing is missed after entity creation.