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Business Licenses and Permits

In order to establish a business and sell products, you need various American business licenses and permits which are mandatory for all kinds of business in any location. Business licenses and permits in America range from three to five levels, such as national level or federal level, state or subdivision level, city level or local level, departmental or related level, and special level. However these business license and permit types and requirements vary from location to location and from business to business. Here are a few of the common American business license and permit requirements to establish or run a business in America.


Business licenses are issued by the government or governing entities, which are the statutory bodies which regulate businesses that manufacture goods and products, sell the products, or render the services, etc. This is similar to the certification to conduct an approved business for a given time frame.


These are issued by the government or governing entities or the agencies that regulate the safe practice of the business, business premises, and business offerings, etc. These are issued for the benefit of the community and initially they can also be called local laws/ordinances. Once the business satisfies safety and other required compliances, the ordinance will issue permits to conduct the intended business.

Entrepreneurs should know the clause of grandfathering which is very important to be aware of before buying a business.


Grandfathering means (in the business and legal industry) that any new local law or code or license or ordinance made by the government or the entity or the agency will be applied to new businesses only. Existing businesses will be exempt from the implementation of the newly passed local law or code or license or ordinance.

  • Creation of Entity or Ownership: This tells the type of the ownership of the business
    • Sole Proprietor
    • Partnership
    • C Corporations
    • S Corporations
    • LLC
    • Non-Profit
    • Trusts
  • Tax ID: This will be issued by the IRS once the above ownership forms are filed.
  • Departmental License: The federal government will issue the concerned businesses department license which may include more than one department’s approval to establish or to run a business.

    State and local license and permits

    • State tax ID
    • State business license and permit
    • Seller permit
    • Fictitious business name or DBA (doing business as)
    • City license and permits
    • Health department license and permits
    • Zoning permits
    • Building permits
    • Environmental permits
    • Municipal permits
    • Neighborhood permits
    • Service permits
    • Fire department permits
    • Products permits
    • Services permits
    • Insurance coverage
    • Bank account
    • Patent rights permits
    • Trade name permits
    • Manufacture permits
    • Transport permits
    • Other departmental permits

As said above, licenses and permits are few and basic. In realty those requirements vary from location to location and from business to business.

If you want to know more about licenses and permits, or have further questions on how to obtain licenses and permits, please contact us at help@bizworldusa.com or 415-234-8833 and one of our approved licensed business professionals will contact you.