Key Takeaways

  • Getting a business license depends on your business type, industry, and location.
  • Not all states require a general business license, but local permits and industry-specific licenses may still be necessary.
  • Business owners may need federal, state, and local licenses, including sales tax permits, professional licenses, and zoning approvals.
  • Applying online may expedite the process, while paper submissions take longer.
  • Failing to secure proper licenses can lead to fines and legal consequences.
  • Use state-provided resources to check licensing requirements based on your business activity and location.
  • Texas businesses often register an assumed name (DBA) if operating under a different name than the legal entity.

How long does it take to get a business license? The answer to this question is much more complicated than it may seem. Several factors can influence how long it will take for you to get your business license, including the type of business you are starting, where your business is located, and state regulations that may apply to your business. Depending on your business, obtaining a business license can take as little as a single day or as long as six months.

Business License Basics

A business is basically an organization that is involved with commerce. Businesses cover every occupation, profession, and trade imaginable. Commonly, businesses undergo inspection by the government for several issues before issuing the owner a business license:

When you receive a business license, it means that you and your business are legally separate entities. This separation is beneficial in a variety of ways. If you want to register a business, you will need much more than just a name for your company and an address where you can receive mail. Depending on the nature of your business, registration may mean having to comply with complex requirements.

States are responsible for issuing business licenses and instituting requirements for these licenses. The laws that apply to business licenses can vary between states, so you will need to learn the specific requirements in your state before you apply for your license.

You will need a business license in each state where your business has a physical presence. Fortunately, simply having customers in another state does not necessarily mean you will need to apply for a license.

Types of Business Licenses

The type of business license for which you'll need to apply will depend largely on the type of business you're running. Available business entities include:

  • C corporations
  • Limited liability companies
  • Limited liability partnerships
  • S corporations
  • Sole proprietorships

While some businesses require a general business license, other businesses need a specific type of license. Plumbers and construction workers, for instance, may need to apply for a contractor's license. If you are starting a hair salon, you will likely need to apply with the Department of Health to receive your business license.

Business License Forms

When you submit your business license application, you will need to supply a few basic pieces of information about your business. For instance, you will usually need to list the name of your business and the name and contact information of one of your owners. Some states may have additional requirements that must be met before issuing a business license. For example, some states only allow multi-member limited liability companies, while others permit an LLC to be registered with one owner.

Before you apply for your business license, you should contact your Secretary of State to learn what forms you need to fill out and submit. Fill out the appropriate forms and then submit them to the correct state agency, along with any necessary fees. You can use the License & Permit Finder provided by the U.S. Small Business Administration to learn about the different licenses that you may need for your company.

Where and How to Apply for Your Business License

The process for applying for a business license will vary by jurisdiction, but here are the key channels and methods available:

  • Online Applications: Many local and state agencies now accept online applications, which are typically processed faster than paper forms. For example, in Texas, you can apply for a Sales and Use Tax Permit through the Comptroller’s eSystems portal.
  • Mail-in or In-person Submissions: In cases where online services are unavailable, applicants may need to submit paperwork by mail or visit a local government office.
  • Federal Licenses: If your business falls under federal regulation—such as manufacturing tobacco, broadcasting, or selling alcohol—you’ll need to apply directly through the appropriate federal agency, which can take longer to process.

Before submitting your application, double-check if additional documentation is required, such as zoning approvals, health inspections, or certifications.

Hiring a Registered Agent

In addition to obtaining a business license, your company may also need to hire a registered agent. For instance, if you form your business in one state but live in another, you need a registered agent. Some states require certain business entities, such as LLCs, to appoint an agent.

Basically, a registered agent is a person that receives official correspondence on your business's behalf. Your registered agent should be a resident in the same state as your business, and should have a physical address. You can either hire an individual as your agent or pay a company for this service.

Registering Your Business

Before your company can begin conducting business, you will need to complete several business registrations. First, you will need to register your business's structure. This is important because it determines how your business will be taxed at both the state and federal levels.

Second, you will need to complete a registration for every type of license required of your company. Registering for business licenses is one component of the overall business registration process. Your local or state licensing agency may inspect your business before issuing a license.

What Happens If You Don’t Get a Required License?

Operating without the necessary business licenses can have serious consequences, including:

  • Fines and Penalties: Non-compliance may lead to financial penalties, often escalating with continued violations.
  • Business Closure: Local or state authorities can shut down your business until compliance is achieved.
  • Legal Liability: Operating without proper licensing may leave you exposed to lawsuits or disqualification from certain legal protections.

If you're unsure whether you need a license, contact your local business office or consult a qualified attorney. You can find experienced lawyers on UpCounsel to assist with licensing compliance.

Filing a DBA or Assumed Name

If you plan to operate under a name different from your legal business name, you must register a "Doing Business As" (DBA), also known as an assumed name.

  • Sole proprietorships and partnerships file a DBA with the county clerk’s office.
  • Corporations and LLCs file with the Secretary of State.

This process usually includes:

  • Checking name availability
  • Completing the appropriate form (e.g., Form 503 in Texas)
  • Paying a filing fee (typically around $25 at the state level)

A DBA registration is typically valid for a set period (e.g., 10 years) and must be renewed.

Common Federal, State, and Local License Requirements

Depending on your operations, you may need a combination of federal, state, and local licenses:

Federal Licenses

Required for businesses engaged in regulated activities, such as:

  • Alcohol manufacturing/distribution (Alcohol and Tobacco Tax and Trade Bureau)
  • Broadcasting (Federal Communications Commission)
  • Agriculture or wildlife (U.S. Department of Agriculture or Fish and Wildlife Service)

State Licenses

Each state sets its own licensing requirements, often managed by multiple departments:

  • Sales tax permits
  • Occupational/professional licenses
  • Environmental permits

Local Licenses and Permits

Cities and counties may require:

  • General business licenses
  • Home occupation permits
  • Health and safety inspections
  • Fire department clearances
  • Certificate of occupancy for commercial spaces

Always consult both your local and state government websites to ensure full compliance.

How Long Does It Take to Get a Business License?

The time it takes to get a business license varies widely. Factors influencing the timeline include:

  • Type of License: A local business license may take a few days to a few weeks, whereas federal licenses can take 60–90 days or more.
  • Application Method: Online submissions are often faster. Paper applications may take longer due to mail handling and manual review.
  • Inspections and Reviews: Businesses requiring zoning permits, health department inspections, or background checks may face longer wait times.
  • Jurisdiction Backlogs: Processing times can also be delayed by staffing issues or high application volume in your city or county.

To expedite the process, ensure your application is complete and includes all supporting documents. Incomplete applications often lead to delays.

Frequently Asked Questions

  1. What does it take to get your business license?
    It involves identifying required licenses based on your industry and location, completing applications, submitting documents, and paying applicable fees.
  2. How long does it take to get a business license?
    It can take anywhere from a single day to several months depending on license type, jurisdiction, and method of application.
  3. Do I need a license to run a home-based business?
    Yes, many local governments require a home occupation permit or zoning clearance for businesses operating from home.
  4. Can I apply for my business license online?
    Often yes. Many states and cities offer online portals for faster application and processing.
  5. What happens if I skip getting a required license?
    You could face fines, legal penalties, or business shutdown. Compliance is critical for legally operating your business.

If you need help with how long does it take to get a business license, you can post your legal needs on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.