5 Business Licenses Most Service Businesses Need (And How to Get Them)
Starting a service business means navigating a confusing mix of licenses, permits, and registrations. The good news: most of them are straightforward to get. Here are the five that most service businesses need.
License 1: Business license (city or county)
Almost every city and county requires a general business license to legally operate. This is separate from any trade-specific license — it's just the permit to do business in that jurisdiction.
- Cost: $50–$150/year
- Where to get it: Your city or county clerk's office (often available online)
- Renewal: Usually annual
License 2: State business registration (LLC or DBA)
If you've formed an LLC, you registered with the state when you filed your Articles of Organization. If you're a sole proprietor operating under a name other than your legal name, you need a DBA ("doing business as") filing.
- Cost: $50–$200 (LLC formation) or $10–$50 (DBA)
- Where to get it: Your state's Secretary of State website
License 3: Federal EIN (Employer Identification Number)
An EIN is basically a Social Security number for your business. You need it to open a business bank account, hire employees, file business taxes, and often to get licensed at the state level.
- Cost: Free
- Where to get it: IRS.gov — takes 5 minutes online
License 4: Trade or professional license (if required)
Most licensed trades require a state-issued professional license to perform regulated work. Whether you need one depends on your trade and state:
| Trade | Typically licensed? |
|---|---|
| Electrician, plumber, HVAC | Yes — most states |
| Cosmetologist, esthetician, nail tech | Yes — all states |
| General contractor | Yes — most states |
| Personal trainer | No (certification recommended) |
| Dog walker / pet sitter | No (most states) |
| House cleaner | No (most states) |
License 5: Seller's permit (if you sell products)
If you sell physical products as part of your service — a cleaning company that sells cleaning kits, a stylist who sells hair products, a caterer who sells packaged foods — you likely need a seller's permit to collect sales tax.
- Cost: Free in most states
- Where to get it: Your state's Department of Revenue or Taxation
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Disclaimer: This guide is for informational purposes only and is not legal, tax, or insurance advice. Always verify specifics with a licensed professional in your state.