Business License Definition

A business license is a permit that is required by federal, state, county or local government allowing a business to operate. Fees for a business license are usually minimal.

Requirements

The U.S. Government's Business.gov website reports a business license can range in requirements from a basic operating permit registered with local government to industry-specific federal licenses and permits. Specialist licenses have increased requirements, and costs and are based on industry and location.

Legal

County and local business licenses or permits are usually required under county or local government law, according to the My Own Business website. Failure to obtain a business license can result in fines and the business being forced to close.

Responsibility

The Company Corporation website explains that the responsibility for researching and obtaining a business license lies with the owner of a business. Laws and costs surrounding business licenses differ by location.

References

• Business.gov: Business Licenses & Permits
• My Own Business: Business Licenses, Permits & Business Names
• The Company Corporation: Definition of a Business License