DO I NEED A LIECENCE TO OPERATE MY BUSINESS? That depends on what type of business you own. Many businesses do not need any special licenses or permits in order to operate their businesses. However, some businesses that engage in certain trades or professions may need special licenses. For example, certain professionals such as doctors, lawyers, teachers and accountants need special licenses, issued by appropriate state agencies, in order to engage in the practice of their profession. A business license registers your business as an individual entity separate from you, which provides important legal benefits. Registering a new business usually takes little more than a mailing address and a business name, although requirements can be significantly more complex for certain business types. Business licensing requirements and issuance are handled at the state level. Laws in each state differ slightly as to what you need and what process to follow to license a new business. If you maintain a business presence in multiple states, you need to apply for a business license in each state. However, just having customers in other states does not mean you need to register in other states. License type A business license is usually tied to the type of business you are forming. Options include a sole proprietorship, a limited liability company, a limited liability partnership, a C-corporation and an S-corporation. Specific types of businesses require additional business licenses beyond the one required to form the company. For example, a shop owner may need a contractor's license and a trade marketing special products which he is producing may need a business license from the department of health. These requirements are also set by each state. Applying for a Business The basic form to apply for a business license usually requires a business name and the name of at least one owner. If you do not live in the same state where you are forming the business, you will typically need a registered agent. A registered agent is a resident of the state designated to receive official correspondence on behalf of the business, such as tax forms or legal paperwork.