How Much Does a Business License Cost?

Most types of new businesses need to register with the state to keep track of their taxes and stay compliant. Here’s how to get a business license in each state + how much they cost.

In the U.S., most business types need to register with the state, typically the secretary of state’s office. This registration is called a business license, or business tax license/permit, or a variation on this name. 

What is a business license and why do you need it?

A business license is a permit to conduct business in a certain location, typically issued by county or by state, that helps track revenue and taxes, specialty business permits and licenses, and employer activities. Business licenses exist to regulate and keep track of the local economy, and maintain fair business practices in each local jurisdiction. 

Most entities, both for-profit and not-for-profit, require a business license to operate, including individual proprietors, so check your local business guidelines to make sure you have everything you need before you make your first sale.

How much does a business license cost?

There’s a fee to register your business initially, then an annual fee to renew, along with the associated sales tax that your business owes. According to Toast, business license fees range between $15-20 to $300+. Sales tax varies by state, and more specifically by city and county, and is only required for certain types of businesses and structures. In addition to a business license, most states also have annual filing fees or annual reporting requirements.

Steps in the process to get a business license in the US

1. Search for business license requirements in your city or county. Many states have small business resources, like starting a business checklists, or free consulting services.

2. Check if your business name is available through your state’s business name database, or choose a new, unique name.

3. Choose a business structure — like a sole proprietorship, an LLC, a limited liability partnership, an S Corporation, C corporation, or non-profit. 

4. Apply for an EIN, an employer identification number, with the IRS. 

5. Fill out a business license application online, in-person, or via mail or fax, if that’s available in your area — typically through the Secretary of State’s office. Things to have handy: your business name, EIN, business address, type of business. 

6. Review additional business licenses and permits that you need to obtain before you start operations, as well as ongoing requirements.

How much a business license costs in each state in the US

Here’s how to get a business license in each state in the U.S., along with the most recent business license costs.

How much does a business license cost in Alabama?

In Alabama, business licenses are called “business privilege licenses” and most businesses and stores require a minimum of one business license. Alabama business privilege licenses range from a $3.75 annual license for soft drink retailers who sell cans or bottles, to $300 for amusement parks in cities with 25,000+ people — take a look through the latest Handbook of Privilege and Store Licenses on the Alabama Department of Revenue website to find your specific type of business and areas where you’ll be operating.

How much does a business license cost in Alaska?

Alaska business licenses are managed by the Alaska Department of Commerce, Community, and Economic Development, and they typically range from $50 to $100 but most fees are currently waived. File for a new business license or a renewal online, or submit a paper application in-person, by fax, or by mail to Alaska’s business licensing office.

How much does a business license cost in Arizona?

Any business operating in Arizona (with taxable business activities) needs to register with the Arizona Department of Revenue (ADOR). New businesses are advised to use the Arizona Business One Stop website, which is designed to help owners manage their compliance with state and federal regulations, and to grow their business. 

Business owners can apply for a Transaction Privilege Tax (TPT) license online or deliver an application in-person in Phoenix, Mesa, and Tucson. Arizona business licensing fees range from $0 in areas like Avondale to $50 in Scottsdale. Read the guidelines thoroughly to understand which additional licenses beyond the TPT licenses you may need, like a withholding tax registration (for those employing people), or specialty permits.

How much does a business license cost in Arkansas?

Arkansas.gov has tons of helpful resources for business owners. New businesses should register with the Secretary of State, and are subject to Arkansas Corporate Franchise Taxes. Business owners can register their business online, in-person, or by mail. Find additional details on fees associated with different business structures and types through the Secretary of State website.

How much does a business license cost in California?

In California, business license costs depend on location and are set on a city or county level. Business licenses range average around $50 — $100 across the state. Use CalGOLD to find your local business license requirements — just enter your operating location and type of business to learn the business licenses and permits you’ll need.

How much does a business license cost in Colorado?

When starting a business in Colorado, you can use MyBizColorado to register and manage your business. New entities will need to register with the Colorado Secretary of State, and incorporation fees range from $50 — $100 depending on the type of business. Business licenses and other specialty permits are determined by the city hall or county clerk and can include liquor licenses, restaurant and food vendor licenses, contractor licenses, and others. For example, businesses operating in Boulder, Colorado need to have a City of Boulder business license.

How much does a business license cost in Connecticut?

Connecticut has a helpful tool for new business owners — through their online, self-service platform, you enter specifics about your business, like the business name, structure, and whether you’ll be selling taxable goods or services. The tool will provide you with a step-by-step process to getting the business licenses and permits you’ll need, including registering with the Secretary of State. 

Filing fees for business licenses in Connecticut range from $50 — $250+. You may require additional licenses depending on what your business does, like a liquor license for restaurants, or a construction permit for building companies.

How much does a business license cost in Delaware?

In Delaware, businesses need to register with the Division of Revenue and obtain a business license if they have a business location in the state, have employees who work in Delaware, or generate revenue in Delaware.

Business owners can register and license their business through Delaware.gov, and state filing fees range from $89 — $200+ To estimate annual franchise tax fees, Delaware has a franchise tax calculator. Here’s a list of business license FAQs in Delaware to learn more about what you’ll need to get started.

How much does a business license cost in Florida?

The two main agencies in Florida that issue business licenses are the Department of Business & Professional Regulation and the Department of Agriculture and Consumer Services. First, look through the list of services that require a business license in Florida.

How much does a business license cost in Georgia?

To get a business license in Georgia, go to the Georgia Tax Center website, enter your business information, and register. New business registration includes Sales & Use Tax, Withholding Tax, Alcohol Licenses, Tobacco Licenses, Motor Fuel Distributor Tax, International Fuel Tax, Composite Tax, and other related business requirements. Some account types have initial registration fees, which must be paid during the registration process.

How much does a business license cost in Hawaii?

In Hawaii, business types including LLCs, corporations, and partnerships, need to register with the Department of Commerce and Consumer Affairs. Nonprofit organizations and public benefit corporations have to register with the Department of the Attorney General. Business owners can file registration applications online, or by email or fax.

How much does a business license cost in Illinois?

Any business in Illinois that reports or pays sales taxes or fees, excise taxes, cannabis taxes, gaming taxes, or withholding taxes for employees, or who sells resale needs to register with the Illinois Department of Revenue.

There is no fee to register a business in Illinois, but there are license application fees in local areas. For example, in Chicago, restaurants or delis have to pay $660.00 every two years to renew their small retail food business license.

How much does a business license cost in Idaho?

Like most states in the U.S., businesses in Idaho need to register with the Secretary of State before they begin operating and making sales, however, there is no state business license. For businesses selling products, or that employ people, or that offer lodging, a sales and use tax permit is required to track taxable sales and employee withholdings. 

New businesses should also review city and county-level business licenses — use the Business Wizard to find out what you need in your area.

How much does a business license cost in Indiana?

Like Idaho, Indiana doesn’t have a singular, state-wide business license, but businesses considered “formal business entities” operating in the state are required to register with the Secretary of State. Businesses generating revenue in the state need to register for Sales, Use, and Income Taxes with the Indiana Department of Revenue. 

Occupational business licenses in Indiana are required for businesses involved with selling alcohol, conducting health-related practices, contractors, childcare, financial services, transportation, and regulated professions.

How much does a business license cost in Iowa?

In Iowa, business permits are required for Sales and Use Tax, hazardous materials, withholding (businesses with employees), water service excise tax, and fuel tax permits, and they are all free to obtain. 

There is no state-specific “general business license”, but specific businesses and professions do warrant their own business licenses. Find out which special business licenses you need through IA Source Link.

How much does a business license cost in Kansas?

After you’ve registered your business with the state and determined your tax requirements, individual cities and counties issue business licenses and permits in Kansas. Wherever you’ll be operating your business, look through the local business license requirements through the Kansas Business website before you open up shop.

How much does a business license cost in Kentucky?

Kentucky business licenses are required for certain types of business activities, and are determined by the city or county where the business operates. Search for your local city or county government to find out what licenses and permits you’ll need to apply for, and use the Kentucky One Stop Business Portal to understand all state-wide requirements.

How much does a business license cost in Louisiana?

Louisiana has a helpful business portal called GeauxBiz.com through the Secretary of State. Use this portal to create a custom business license checklist where you’ll determine which licenses are required to operate, as well as file with the Secretary of State, the Department of Revenue, and the Louisiana Workforce Commission. Business licenses

How much does a business license cost in Maine?

Maine business licenses are issued on a town/city level, and include: professional licensing, sales and use tax, income tax withholding, food and beverage, lodging, liquor licensing, motor vehicles, gaming, and agriculture. Business licenses, such as licenses for eating places are issued by the health inspector and cost around $100 - $300.

How much does a business license cost in Maryland?

To find required business licenses and permits based on where you’ll be operating in Maryland, use the Maryland Business License Online Portal and be prepared with your business name, structure, location(s), EIN, and any other relevant information. Business licenses are issued by individual county clerks, and businesses must register with the Comptroller’s Office before applying for a business license.

How much does a business license cost in Massachusetts?

Massachusetts has a helpful online system for registering new businesses and finding relevant licenses and permits you need to operate. First, review the starting a new business checklist. Then, review each business license you may need, related to building and trades, commercial transportation, environment, healthcare, real estate, and the RMV.

How much does a business license cost in Michigan?

New businesses in Michigan can refer to the Michigan Small Business Development Center (SBDC) to learn more about how to start and manage their business in compliance with state and federal regulations.

How much does a business license cost in Minnesota?

Minnesota business license costs vary depending the county, type and scope of the business. Business licenses in Minnesota need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in Mississippi?

Mississippi business license costs vary depending the county, type and scope of the business. Business licenses in Mississippi need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in Missouri?

Missouri business license costs vary depending the county, type and scope of the business. Business licenses in Missouri need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in Montana?

Montana business license costs vary depending the county, type and scope of the business. Business licenses in Montana need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in Nebraska?

Nebraska business license costs vary depending the county, type and scope of the business. Business licenses in Nebraska need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in Nevada?

Nevada business license costs vary depending the county, type and scope of the business. Business licenses in Nevada need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in New Hampshire?

New Hampshire business license costs vary depending the county, type and scope of the business. Business licenses in New Hampshire need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in New Jersey?

New Jersey business license costs vary depending the county, type and scope of the business. Business licenses in New Jersey need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in New Mexico?

New Mexico business license costs vary depending the county, type and scope of the business. Business licenses in New Mexico need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in New York?

New York business license costs vary depending the county, type and scope of the business. Business licenses in New York need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in North Carolina?

North Carolina business license costs vary depending the county, type and scope of the business. Business licenses in North Carolina need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in North Dakota?

North Dakota business license costs vary depending the county, type and scope of the business. Business licenses in North Dakota need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in Ohio?

Ohio business license costs vary depending the county, type and scope of the business. Business licenses in Ohio need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in Oklahoma?

Oklahoma business license costs vary depending the county, type and scope of the business. Business licenses in Oklahoma need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in Oregon?

Oregon business license costs vary depending the county, type and scope of the business. Business licenses in Oregon need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in Pennsylvania?

Pennsylvania business license costs vary depending the county, type and scope of the business. Business licenses in Pennsylvania need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in Rhode Island?

Rhode Island business license costs vary depending the county, type and scope of the business. Business licenses in Rhode Island need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in South Carolina?

South Carolina business license costs vary depending the county, type and scope of the business. Business licenses in South Carolina need to be renewed and paid for regularly, so check with your jurisdiction about how often yours will need to be renewed.

How much does a business license cost in South Dakota?

South Dakota doesn’t have a statewide business license requirement. However, after choosing an entity type and forming a business, nearly all businesses will need to apply for a State Sales and Use Tax License through the Department of Revenue, Business Tax Division.

How much does a business license cost in Tennessee?

Tennessee businesses will need to register their business to pay business tax to the state through the Department of Revenue Tennessee Taxpayer Access Point (TNTAP), and then contact their local county or city, pay an additional $15 fee, and apply for their business license from their locality. Depending on how much money they generate, they will either get a minimal activity license or a full business license.

How much does a business license cost in Texas?

There’s no state business license in Texas, but every business will need to check which specific licenses and permits they need to legally operate. Some businesses will need to complete a Texas Tax Registration application, which, for some business entity types, can be done online through the Texas Comptroller of Public Accounts online system, called ESystems. 

This application is free. As always, check with local government to see if you need a business license for your city or county.

How much does a business license cost in Utah?

Utah has local county and city-based business licenses, so check with your county or city’s local government to find the requirements and fees needed. All businesses will need to register their new business with Utah's OneStop Business Registration, you can register your new business with the Utah State Tax Commission, Utah Department of Commerce, and Utah Department of Workforce Services. 

Conveniently, some cities also build their requirements into the One Stop Business Registration portal. One Stop Business Registration costs $5.00 + $0.05 per record.

How much does a business license cost in Vermont?

To get started as a business in Vermont, you’ll need to register your business with the Secretary of State Corporations Division. You can do so easily with the Online Business Service Center. 

Fees for the various filings that will need to be done will vary based on business entity and type, but typically range from $20 to hundreds of dollars. You may need a city or county business license too, so check with your local government.

How much does a business license cost in Virginia?

Virginia businesses will need to register their business online with Virginia Tax. This will provide a new business with their Virginia Tax account number for each relevant tax type, as well as their sales tax certificate of registration. Some businesses will need to register with the State Corporation Commission, filing articles of organization or other similar forms, before going through the Virginia Tax registration. 

Check your local government to see if you’ll need a city or county business license.

How much does a business license cost in Washington?

In Washington State, most businesses will require a business license, but before you file for the business license, you’ll need to file with the Secretary of State through the Washington Corporations and Charities Filing System. The fees will vary based on type of business entity — for example, the cost to form a domestic LLC is $180. 

Then you can use the Washington State Department’s Business Wizard to apply for your business license. The online business license application costs a minimum of $90, with additional fees for other permits that you can apply for at the same time. Check with your local county or city to see if you need additional business tax permits.

How much does a business license cost in West Virginia?

In West Virginia, the best way to get your Business registration Certificate is through the West Virginia One Stop Business Portal, which registers your business with the State Tax Department, the Secretary of State, and/or WorkForce West Virginia. Thorough instructions, including screenshots, are provided by the One Stop Business Portal. 

Every location of a business must do its own application and be granted its own business registration certificate. Depending on your city or county, you may also need a local business license, so check with your local government office. The cost can vary based on business activity and location, so log into the business portal and it will generate the fees you need to pay.

How much does a business license cost in Wisconsin?

In Wisconsin, businesses need to obtain Business Tax Registrations. Some businesses, including sole proprietorships, Non-Wisconsin LLC or corporations, Partnerships, and Nonprofits will need to register with the department of Revenue, which can be done online at the Wisconsin Department of Revenue website. 

The fee is calculated as you move through the process, as it depends on several factors of your application. Wisconsin LLCs and corporations can use the One Stop Business Registration portal to get registered with the Department of Revenue, the Department of Financial Institutions and the Department of Workforce Development all at once. This costs between $100 and $130, plus a $1 processing fee. Businesses may also need to get city or county-based business licenses, so check with your local government office.

How much does a business license cost in Wyoming?

In Wyoming, there’s no formal business license, but you must form and register your LLC, partnership, or corporation with the Secretary of State, which can be done online through the Wyoming Secretary of State’s website. It costs $100 to register any for-profit business, and $50 for a non-profit. There’s also a $2 online filing fee. 

You’ll also need to get a sales and use permit, an EIN, and pay into Worker’s Compensation and Unemployment Insurance. Check with your local city or county government office to see if you’ll need any additional business permits for your location.

Take the first step towards starting a business today

With your business license in progress, you can begin to put together a more detailed business and marketing plan, choose the technology that will power your business, like a point of sales system (POS), find real estate, and scope out your staffing needs. You’ve got this!  

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