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To get a business license, you need to choose a business structure, obtain tax identification numbers, and apply for the necessary licenses and permits through your local or state offices. This process ensures that you can operate legally, collect taxes, and comply with government regulations.
This guide will explain how to get a business license – from choosing a business structure to completing the application forms – so you can sell custom products with confidence and avoid costly mistakes.
Key takeaways
- Most businesses are legally required to obtain a license, even if they are exclusively online.
- You must choose a business structure – like sole proprietorship or Limited Liability Company – before applying for a business license for an online store.
- An Employer Identification Number from the Internal Revenue Service is required to file taxes, hire employees, or apply for permits.
- States and cities may require different licenses, such as a general business license to legally operate in your area or a seller’s permit to collect sales tax.
- The business license fees you must pay vary by state, type, business structure, and industry.
- Business owners need to renew their licenses annually. Failing to do so can lead to penalties or suspension.
- Print-on-demand sellers must stay compliant with licensing and tax rules in all states where they have a legal or tax presence.
Step 1: Choose and register your business structure
First, you need to register a business structure, which is the legal framework of your business.
Most first-time online sellers pick one of the following business structures:
- Sole proprietorship – The default structure for professionals selling under their own name without forming a company. It’s inexpensive, but you’re personally responsible for any business debts or legal issues.
- Limited Liability Company (LLC) – A popular option for small businesses, an LLC protects your personal assets if the business faces legal or financial trouble.
- Limited Liability Partnership (LLP) – Ideal for starting a business with one or more partners, as each individual gets liability protection.
As your business grows, you can change your structure later – like switching to a Corporation. But choosing the right one upfront helps you avoid legal or tax complications down the road.
Next, choose a business name you’ll use on legal documents, licenses, and public listings. Search your state’s business database to check its availability.
For example, sellers in California can check which business names are unavailable by visiting the Secretary of State’s database page.
Some states also require you to register a Doing Business As or fictitious name certificate to operate under a name other than your legal business name.
This is common for sole proprietors planning to use a brand name instead of their personal name for their shop, or for LLCs operating multiple stores with distinct branding.
After choosing a structure and name, the next step is to register your business with the state. The registration process depends on your structure:
- Sole proprietors may not need to register with the state unless local laws require it.
- LLCs and LLPs must register with your state government through the Secretary of State’s office. You’ll also need a registered agent – a person or company that accepts official legal documents on your behalf.
Step 2: Get federal and state tax IDs
The next step in getting a business license is to get a tax identification number. This helps the government track your taxes and business activities.
Most businesses need an Employer Identification Number (EIN) issued by the IRS (Internal Revenue Service) to:
- File business taxes.
- Hire employees.
- Open a business bank account.
- Register for certain licenses and permits.
Even for sole proprietors, getting an EIN is helpful, as it keeps your personal information private and gives your business more credibility.
Sellers can apply for an EIN through the IRS website.
Depending on where your business is located and what you sell, you might also need a state tax ID. This number is for collecting and paying state sales tax. You’ll apply for it through your state’s Department of Revenue office.
Selling online with Printify?
Printify sellers are considered the Merchant of Record. That means you’re legally responsible for collecting and remitting sales tax in states where you have nexus.
You may have a nexus if you:
- Live or operate your office in the state.
- Hire employees from that state.
- Earn a certain amount of revenue from customers there.
Learn more in our guide to understanding sales tax with Printify.
Step 3: Research license requirements by industry and location
Once your business is registered and you have your tax IDs, it’s time to determine which licenses and permits you need to operate legally. The requirements vary based on what you sell, where you’re located, and how you run your business.
Federal license
Selling products related to alcohol, firearms, aviation, or broadcasting? You’ll need to register for a license from the appropriate federal agency.
Note
Print-on-demand businesses typically don’t fall into these categories, but it’s good to double-check the full list of federal license requirements to avoid issues.
State licenses and permits
Your state may require additional licenses based on the products you sell, the way your business operates, and where you have a nexus.
Common examples include:
- State business license – Needed to sell physical products directly to customers.
- Seller’s permit – Required for selling taxable goods or services.
- Industry-specific licenses – For areas like construction, cosmetology, transportation, or food handling.
Local licenses
Some cities and counties require you to get a local-level business license for online stores or other home-based businesses.
You might also need the following:
- Home occupation permit – Required for running a business from a residential property to show your operations won’t disrupt your neighborhood.
- Zoning clearance – To confirm your home-based business is allowed in your area. Some places restrict the type of business activity that can take place in a residential property.
- Signage permit – Needed to post a business sign at your home, like a banner or sidewalk sign.
Even for print-on-demand businesses that never hold inventory, your city or county might still expect you to register your business locally, especially if you’re planning to receive shipments, have business-related visitors, or generate noticeable activity from your home.
Quick tip
Contact your local city or county clerk’s office and ask what’s required for your specific business activities and address. You can also request an online checklist to guide the process.
Step 4: Register your business licenses and permits
Once you have determined which business licenses are required, the next step is to apply for them.
Most states let you apply through one of the following:
- Your state’s Department of Revenue or business licensing portal. For example, Maryland businesses can use the Maryland Business Express portal to apply for multiple state licenses in one place.
- Your city or county clerk’s office for local licenses online, by mail, or in person.
Most applications will ask for your:
- Business name and address.
- Employer Identification Number.
- State tax ID.
- Business structure.
- Description of your business activities.
- Contact information.
- Sometimes, the estimated revenue or number of employees.
You’ll almost always pay a non-refundable fee, typically starting at $50. Some states also require a security deposit for businesses with high revenue estimates.
The wait time for the registration process varies by state. Online applications can be approved within a few business days, while mail-in applications may take several weeks. Some agencies will email your license details, and others will send physical documents.
What is a business license ID?
A business license ID is a unique identification number assigned to your license or permit once your application is approved. Some states call it an Entity ID, a Unified Business Identifier, or another name.
You’ll use this ID to:
- Renew or update your license.
- Apply for additional permits or certifications.
- Verify your business status with banks or partners.
Step 5: Maintain and renew your licenses
Once you obtain your licenses, ensure that you keep them valid and follow the rules tied to them.
Display your license
Your state, city, or county may require you to display your business license in a visible spot if you have a physical retail location.
Some jurisdictions let you display licenses for online businesses on your website or provide them to customers upon request. Others may not require a visible display at all, so it’s best to check the requirements.
Renew on time
Most business licenses expire after one calendar year, though some may last longer depending on your state or city. Missing a renewal can result in fines, temporary suspension, or the need to reapply.
If your licensing agency offers an online account, log in to renew and track your license status. Otherwise, renew by mail, in person, or through a downloadable form on their website.
Tips to stay on track:
- Create calendar reminders as soon as your license is approved.
- Sign up for renewal alerts if offered by the agency.
- Keep a digital and printed copy of your license in your business records for easy access during renewals or audits.
Stay compliant
A business license for an online store comes with local and state responsibilities, even if you don’t have a physical storefront. As your brand grows or reaches new locations, your obligations can change.
Let’s say you run a print‑on‑demand shop from home in Hawaii. You’ll need Hawaii’s General Excise Tax license to manage your income and comply with local tax rules.
If annual sales to customers in Oklahoma start to pick up and make over $100,000, you’ll need to register there and collect Oklahoma sales tax. On the other hand, New Hampshire, Oregon, Alaska, Montana, and Delaware don’t charge state sales tax.
You should report any change in business activities to your licensing office. Failing to do so can result in penalties or even suspension of your license.
Common mistakes to avoid when getting a business license
Many sellers make the following mistakes before knowing exactly how to get a business license.
- Using the wrong business name or entity type – Mismatches between your application and registration documents can cause delays. Double-check your business structure and fictitious name, if applicable, before you apply.
- Forgetting local requirements – Many professionals only check state-level rules and ignore city or county licenses needed to operate legally.
- Not budgeting for license fees – Costs vary by location, business type, and industry. Failing to plan ahead can delay your filing process.
- Assuming you’re exempt – Some small businesses or freelancing professionals qualify for exemptions, but you must confirm with your city or state department first.
- Skipping zoning rules – Home-based businesses and certain locations require zoning approval. Operating without clearance could result in fines or forced closure.
- Ignoring the full process – Missing paperwork or incomplete applications can slow your approval.
- Forgetting to update information – If your business changes address, ownership, or activities, you must report it. Failing to do so may make your license invalid.
- Not checking for industry-specific requirements – Retail, food, transportation, and other industries may require extra permits. Contact the proper division or agency for your field for further information.
How to start a business with Printify
Want to sell online without holding inventory? Printify is one of the easiest platforms for that. Our print-on-demand service lets you create and sell custom products without upfront costs or managing fulfillment.
1. Visit Printify or create an account
Sign up for free – no hidden fees or subscriptions required. You’ll only pay for the products when a customer makes a purchase.
2. Choose a custom product
Printify offers over 1,300 products, from custom clothing and accessories to home goods and lifestyle items. Take time to determine which ones best suit your niche, brand aesthetic, and audience.
3. Design your product
Use our Product Creator to upload your artwork or create new designs using AI-generated images, free graphics, fonts, or premium visuals from Shutterstock. Drag, drop, resize, and preview your designs on real product mockups – all in one place.
4. Add your product details
Complete product details like titles, descriptions, and tags. Then, set your retail price based on how much you want to earn after accounting for Printify’s base cost and applicable taxes. You’re in control of your profit margins.
5. Connect your online store
Create a website using platforms like Shopify or Wix, or sell on marketplaces like Etsy or eBay. Once your store is ready, connect it to Printify. We provide step-by-step guides to help you sync your products and complete your setup smoothly.
Visit our integrations page for more information.
6. Let us handle the rest
When someone buys a product from your store, Printify automatically forwards the order to one of our Print Providers, who print, pack, and ship it directly to your customer. You never have to touch inventory or handle shipping logistics.
How to get a business license: FAQ
Yes, you may need a business license for an online business, depending on your location, structure, and what you sell.
Most states, like California and Georgia, require online sellers to register their businesses and obtain a license or permit to operate legally. Review your local and state requirements to determine if any fees, forms, or special exemptions apply.
The cost of a business license varies depending on the city, state, and type of business. It can range from free to several hundred dollars per calendar year.
Additional costs may include inspection fees or a certificate issuance charge. Contact your licensing office to get the full cost breakdown.
Some cities and counties may let you run your business operations without a license under specific conditions, but many states still require one – especially if you’re earning revenue, selling taxable goods, or operating from a physical property.
Without a license, it may be harder to report taxes, verify your business with professionals, or qualify for certain permits. Contact your local office to review the requirements for your business structure and location.
The registration process for a business license typically takes a few days to several weeks, depending on your location and the type of business structure, such as a Limited Liability Company, Partnership, or Corporation.
Some states offer instant approval if you apply online, while others require time for review, background checks, or zoning approvals.
The cost to get a business license in Oklahoma depends on your business structure.
For a Limited Liability Company, Partnership, or Corporation, you’ll need to register your business with the Oklahoma Secretary of State. This filing costs $100 plus a service fee and includes your official registration and Secretary of State filing number.
You must also obtain a seller’s permit from the Oklahoma Tax Commission (OTC). You can complete this step online through the OTC application portal, using your business’s Employer Identification Number and Secretary of State filing number.
The cost of getting a business license in Washington depends on the purpose of your application. Opening a new business costs $50, while an annual renewal is $5.
Those using a trade name – a name different from your legal business name – can register it for an additional $5. Sellers can apply through the state’s Department of Revenue website.
Yes. Nearly all businesses operating in Nevada must register and obtain a state business license through the Nevada Secretary of State.
The standard cost for this state license is $200/year for most business structures. For corporations, the renewal or annual fee is $500. You may also need additional local or municipal licenses depending on your business location.
Conclusion
Getting a business license involves more than just filing forms. It requires planning, verifying requirements, and following through with the full registration process to ensure your business can legally operate at every level.
Whether you apply through an online account, by mail, or in person, ensure that you complete all the necessary steps and remain compliant with your local regulations.
Ready to start selling products online? Join Printify to create your own brand without inventory, upfront costs, or shipping hassles.
