What types of businesses need a license?

Before starting a business, you must have wondered at some point, what types of businesses need a license? As required by government law, businesses must have at least one business license or permit issued by their local, county, or state government. The exact type of business license you need will depend on where you're operating, the products or services you're selling, and what your business structure is.

Here are some types of businesses that require a license that you need to know about:

1. Any type of business - General business license

You need a general license to run your business in almost any country and territory.

2. Product or service business - Seller's license

Businesses need a seller's license to be able to sell their products and services in-store or online. It is also possible to collect sales tax on any taxable goods.

3. Companies doing business under another name - Business license doing-business-as (DBA)

A DBA license allows you to legally operate your business under a brand name other than the one you have registered with the government. In certain areas, this license is also known as a trade name license.

4. Health-related business type - Health license

Many types of businesses such as restaurants, beauty salons, tattoo parlors must be inspected and considered for a health license. This license helps keep you and your customers safe.

5. Businesses related to alcohol and beer - Liquor license

You will need this license regardless of the type of business that serves alcohol, including bars, restaurants, event venues and more. You should also consult the laws and permits from the Alcohol and Tobacco Tax and Trade Bureau before starting to operate.

6. Businesses providing certain professional services - Professional license

Certain types of companies as well as employees require a professional license before operating. Most of the companies that need this type of license operate in the service sector such as accounting, legal advice, infrastructure repair.