We may earn if you use our links. details
Best LLC Formation Services

License and permit guide

Seller's Permit vs. Business License

A seller's permit or sales-tax account generally concerns collecting and remitting tax on taxable sales. A business license concerns permission to operate in a jurisdiction or conduct a regulated activity. A retailer may need both.

Requirements vary by activity and location. This educational guide is not legal advice. Verify with the responsible government agencies.

Short distinction

A business license is not an LLC

Registering to collect sales tax does not prove that zoning, health, professional, or local operating requirements are satisfied; receiving a city license does not necessarily create a sales-tax account.

Review state LLC formationEstimate LLC costs

Possible requirements

License and permit checkpoints

01
Determine whether products or services are taxable

Confirm the issuing agency, prerequisite, fee, inspection, effective date, and renewal rule for your exact activity and address.

02
Register with the state revenue agency where required

Confirm the issuing agency, prerequisite, fee, inspection, effective date, and renewal rule for your exact activity and address.

03
Confirm resale-certificate rules

Confirm the issuing agency, prerequisite, fee, inspection, effective date, and renewal rule for your exact activity and address.

04
Check local general business licensing

Confirm the issuing agency, prerequisite, fee, inspection, effective date, and renewal rule for your exact activity and address.

05
Add food, alcohol, professional, or facility permits

Confirm the issuing agency, prerequisite, fee, inspection, effective date, and renewal rule for your exact activity and address.

06
Reconcile legal name, trade name, address, and account ownership

Confirm the issuing agency, prerequisite, fee, inspection, effective date, and renewal rule for your exact activity and address.

Budget variables

What changes the cost?

Seller registration fee where charged

Replace national planning allowances with a current official fee schedule before filing or signing a lease.

Security deposit in limited cases

Replace national planning allowances with a current official fee schedule before filing or signing a lease.

Local gross-receipts or license tax

Replace national planning allowances with a current official fee schedule before filing or signing a lease.

Industry permits and inspection fees

Replace national planning allowances with a current official fee schedule before filing or signing a lease.

Point-of-sale configuration

Replace national planning allowances with a current official fee schedule before filing or signing a lease.

Accounting and filing administration

Replace national planning allowances with a current official fee schedule before filing or signing a lease.

Verification workflow

How to verify requirements

  1. Define the exact activity and address
  2. Check the responsible state agency and revenue department
  3. Check county and city portals
  4. Confirm prerequisites before paying an application fee
  5. Save the official source, contact, fee, and renewal date
  6. Recheck requirements before expanding services or locations

Questions

Frequently asked questions

Is an EIN the same as a business license?

No. An EIN is a federal tax identifier issued by the IRS. It does not authorize a regulated activity or location.

Does forming an LLC include the license?

Usually not. Entity formation and licensing are separate filings handled by different agencies.

Can requirements differ by city?

Yes. Counties and cities may regulate zoning, occupancy, general business activity, signs, health, fire, and local professions.

How often do licenses renew?

Schedules vary by license and jurisdiction. Record the expiration, renewal window, continuing requirements, and responsible person for every approval.

Official starting points

Sources and review

Last reviewed: 2026-08-09