Do you need a business license? Find out in three questions.
Most US companies run from abroad need no business licence at all. Answer three questions to see what yours needs now, what comes later, and what you can stop worrying about.
Checked by the BaseAcross team.
US business licensing
- General federal licence
- NoneOnly regulated activities
- States with a general licence
- 10Of 50 states and DC
- Reach a seller abroad
- 4AK, HI, WA and WV
- Wyoming state licence
- NoneWhere most founders form
What does your company need?
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Your answer
Nothing to apply for right now.
Based on your answers, no licence is needed today. Below is what would change that, and what you can stop worrying about.
You'll need later, if this happens· 1
A licence in a state you sell into a lot
Only Alaska, Hawaii, Washington, West Virginia reach a seller with no presence. Every other state doesn't.
Alaska: Alaska expects a licence if any part of your business happens in Alaska, so check before you sell there regularly. Hawaii: You need one once you have $100,000 of sales or 200 transactions with Hawaii customers in a year, even with no presence there. Washington: You need one once you have more than $100,000 a year of sales to Washington customers, even with no presence there. West Virginia: You need one once you have to collect West Virginia's sales tax, which for a remote seller starts at its sales threshold.
You don't need· 5
A Wyoming state business licence
Wyoming has no general state business licence. Licences there come from cities and counties where you operate, and from regulators for specific activities.
A city licence where you have no office
City and county licences are for businesses located there. A company run from abroad isn't located in a US city.
A seller's permit before you have to collect sales tax
A seller's permit is a sales tax registration, not a licence to sell. You need one in a state once you have to collect its tax.
A licence to form your company
Forming an LLC or corporation is a filing, not a licence. Your EIN is a tax number, not a licence either.
A general federal business licence
There isn't one. The US licenses specific activities, such as alcohol, firearms and broadcasting, not businesses in general.
Want it checked for your exact business?
Customers can order licence research from their Services page. We check every federal, state, county and city licence your activity needs, and send it in writing: $99, in 4 business days.
Open ServicesWhere do US business licences come from?
Four layers, and most companies run from abroad touch none of them at the start.
Federal: only for regulated activities. There's no general federal business licence. Federal licences cover specific activities, such as alcohol, firearms, broadcasting, aviation and money transmission.
State: a general licence in 10 places, and licences by activity everywhere. Alabama, Alaska, Delaware, District of Columbia, Hawaii, Maryland, Nevada, Tennessee, Washington and West Virginia have a licence most businesses operating there need. Every state licenses regulated work, such as health, finance and the professions.
Local: where you have an office, shop or staff. Cities and counties license businesses located in them. A company run from abroad isn't located in a US city.
Sales tax: a registration, not a licence. A seller's permit lets you collect a state's sales tax. You need one in a state once you have to collect there, not before.
Business licences in every state
Each state's general licence, what it means for a company run from abroad, and its sales tax registration. Each name opens that state's page.
| State | General licence | Run from abroad | Sales tax registration |
|---|---|---|---|
| Alabama | Business privilege license, Set by activity and county | It's bought where the business is located, so a company with no Alabama location doesn't need one. | Sales tax licence |
| Alaska | Alaska Business License, $50 a year | Alaska expects a licence if any part of your business happens in Alaska, so check before you sell there regularly. | Alaska has no state sales tax, but many local governments do. Remote sellers register with the Alaska Remote Seller Sales Tax Commission (arsstc.org). |
| Arizona | None | No state licence to get. | Transaction privilege tax (TPT) licence |
| Arkansas | None | No state licence to get. | Sales and use tax permit |
| California | None | No state licence to get. | Seller's permit |
| Colorado | None | No state licence to get. | Sales tax licence |
| Connecticut | None | No state licence to get. | Sales and use tax permit |
| Delaware | Delaware business license, $75 a year for the first location in most categories | Forming in Delaware isn't doing business there, so a Delaware company run from abroad doesn't need one. | Delaware has no sales tax. It taxes a business's gross receipts instead, through the same licence. |
| District of Columbia | Basic Business License, $99 for two years in the general business category | It covers activity conducted in DC, so a company with no DC operations generally doesn't need one. | Sales tax registration |
| Florida | None | No state licence to get. | Certificate of registration (sales tax) |
| Georgia | None | No state licence to get. | Sales and use tax certificate of registration |
| Hawaii | General excise tax (GET) license, $20, once | You need one once you have $100,000 of sales or 200 transactions with Hawaii customers in a year, even with no presence there. | Hawaii has no sales tax. Its general excise tax is charged to the seller, and the GET licence is the registration. |
| Idaho | None | No state licence to get. | Seller's permit |
| Illinois | None | No state licence to get. | Certificate of registration |
| Indiana | None | No state licence to get. | Registered retail merchant certificate |
| Iowa | None | No state licence to get. | Sales tax permit |
| Kansas | None | No state licence to get. | Sales tax registration |
| Kentucky | None | No state licence to get. | Sales and use tax permit |
| Louisiana | None | No state licence to get. | Sales tax registration |
| Maine | None | No state licence to get. | Sales tax registration |
| Maryland | Trader's license, Set by county, renewed each May | It's for each store or fixed place of business in Maryland, so a company selling from abroad doesn't need one. | Sales and use tax licence |
| Massachusetts | None | No state licence to get. | Sales and use tax registration |
| Michigan | None | No state licence to get. | Sales tax licence |
| Minnesota | None | No state licence to get. | Sales tax permit |
| Mississippi | None | No state licence to get. | Sales tax permit |
| Missouri | None | No state licence to get. | Retail sales licence |
| Montana | None | No state licence to get. | Montana has no general sales tax. |
| Nebraska | None | No state licence to get. | Sales tax permit |
| Nevada | Nevada State Business License, $200 a year for an LLC, $500 for a corporation | A Nevada company needs it wherever its owners live: it's part of keeping a Nevada company in good standing. | Seller's permit |
| New Hampshire | None | No state licence to get. | New Hampshire has no general sales tax. Businesses serving meals or renting rooms there hold a meals and rooms licence. |
| New Jersey | None | No state licence to get. | Certificate of authority (sales tax) |
| New Mexico | None | No state licence to get. | Gross receipts tax registration (CRS number) |
| New York | None | No state licence to get. | Certificate of authority |
| North Carolina | None | No state licence to get. | Certificate of registration |
| North Dakota | None | No state licence to get. | Sales tax permit |
| Ohio | None | No state licence to get. | Vendor's licence |
| Oklahoma | None | No state licence to get. | Sales tax permit |
| Oregon | None | No state licence to get. | Oregon has no sales tax. |
| Pennsylvania | None | No state licence to get. | Sales tax licence |
| Rhode Island | None | No state licence to get. | Permit to make sales at retail |
| South Carolina | None | No state licence to get. | Retail licence |
| South Dakota | None | No state licence to get. | Sales tax licence |
| Tennessee | Business license, $15 a year for a minimal activity licence; a standard licence brings business tax returns | The counties and cities issue it to businesses located in them, so a company with no Tennessee location doesn't need one. | Sales and use tax registration |
| Texas | None | No state licence to get. | Sales and use tax permit |
| Utah | None | No state licence to get. | Sales tax licence |
| Vermont | None | No state licence to get. | Sales and use tax registration |
| Virginia | None | No state licence to get. | Sales tax certificate of registration |
| Washington | Washington business license, Application fee varies, plus any city or state endorsements | You need one once you have more than $100,000 a year of sales to Washington customers, even with no presence there. | Included in the business licence |
| West Virginia | Business Registration Certificate, $30, once | You need one once you have to collect West Virginia's sales tax, which for a remote seller starts at its sales threshold. | Covered by the Business Registration Certificate |
| Wisconsin | None | No state licence to get. | Seller's permit |
| Wyoming | None | No state licence to get. | Sales and use tax licence |
Which activities need a licence?
If what you sell is on this list, licensing is real and comes before your first sale.
Food, drinks or supplements Food and supplements sold in the US come from FDA-registered facilities, and US premises need local permits. FDA food facility registration. State and local food permits.
Cosmetics or skincare Cosmetics sold in the US fall under the FDA's Modernization of Cosmetics Regulation Act. FDA cosmetics registration and product listing.
Alcohol Alcohol is licensed federally and again in every state you sell into. TTB permit. State alcohol licences.
Tobacco, vapes or nicotine Tobacco and vapes are regulated by the FDA and the TTB, and licensed by states. FDA tobacco product rules. TTB permit for makers and importers.
Firearms or ammunition Making or importing firearms or ammunition, or dealing in firearms, needs a federal firearms licence. Federal firearms licence (FFL).
Payments, money transfer or crypto exchange Moving money for others makes you a money services business, registered federally and licensed by states. FinCEN money services business registration. State licences through NMLS.
Lending or credit Consumer lending is licensed state by state. State licences through NMLS.
Investment advice or trading Giving investment advice for pay, or dealing in securities, needs SEC or state registration. Investment adviser or broker-dealer registration.
Healthcare, telehealth or therapy Clinical services are licensed where the patient is, and medical devices are FDA-registered. State professional licences. FDA device registration and listing.
Law, accounting, engineering, architecture or real estate These professions are licensed by each state, for the people who do the work. State professional licences.
Trucking, freight or drones Commercial vehicles and commercial drone flights are licensed federally. USDOT number and operating authority. FAA rules for commercial drones.
Toys or children's products Children's products sold in the US need third-party testing and a certificate. Children's Product Certificate.
Radio, TV or telecoms Broadcasting and some telecoms services are licensed by the FCC. FCC licence or authorisation.
Questions about business licences.
If yours is not here, email us at hello@baseacross.com before you order.
Usually not, if you run it from abroad and sell ordinary goods or services. Licences attach to operating in a place or doing a regulated activity, and forming an LLC is neither. The lookup above checks your state and activity.
No. The US licenses specific activities federally, such as alcohol, firearms, broadcasting and money transmission. A company that does none of those needs no federal licence.
Alabama, Alaska, Delaware, District of Columbia, Hawaii, Maryland, Nevada, Tennessee, Washington and West Virginia. Each applies to businesses operating there, and Nevada's also applies to every company formed there.
Alaska, Hawaii, Washington and West Virginia can. Hawaii and Washington do once your sales into the state pass $100,000 a year, or 200 transactions in Hawaii. West Virginia does once you must collect its sales tax, and Alaska ties its licence to any business activity in Alaska.
Not from the state. Wyoming has no general state business licence. A Wyoming LLC needs a city or county licence only where it has an office or staff, and a licence for a regulated activity if it has one.
Only if it does business in Delaware: a location, staff or sales made there. Forming a company in Delaware isn't doing business there, so a Delaware LLC run from abroad doesn't need one.
No. A seller's permit, or sales tax permit, registers you to collect a state's sales tax. You need one in a state once your sales there pass its threshold, usually $100,000 a year, or once you have staff or an office there.
No. A registered agent's address is where the state sends legal mail. It isn't an office or a place of business, and it doesn't bring a city licence.
Nothing to license? Form the company.
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