State Business Entity Search

Is an LLC a business license

An LLC is not a business license. Kentucky's Secretary of State says it does not issue business licenses to entities formed under Kentucky law, and North Carolina says it has no single generic business license.

By the State Business Entity Search team. Ten official pages were used: the SBA's launch guide, Kentucky and North Carolina state pages, Washington, Delaware and Nevada agency pages, and the Los Angeles Office of Finance. Last updated November 13, 2026. How guides are prepared.

An LLC is a structure, a license is permission

The SBA's launch guide lists registering the business, getting federal and state tax ID numbers, and applying for licenses and permits as separate items. Registering makes the business a distinct legal entity. An LLC is one structure a business can choose, and a license or permit is tied to what the business does and where.

The SBA describes articles of organization as a simple document with the company name, address, member names and registered agent. It says most businesses will also need a tax ID number and the appropriate licenses and permits.

Kentucky and North Carolina

The Kentucky Secretary of State's Business Records FAQs state a plain rule. The office does not issue business licenses to individuals or to business entities formed under Kentucky law.

North Carolina tells owners to register their business with the Secretary of State. It then says the state has no single generic business license that will ensure compliance with all requirements. Some businesses face several state requirements and others face none.

Washington: formation first, license second

Washington's Secretary of State says creating an LLC requires filing with it. The Certificate of Formation costs $180 plus an online processing fee. After formation, the office tells owners to wait one business day and then apply to the Department of Revenue for a business license.

The Department of Revenue sets its own triggers. A business needs its license if gross income reaches $12,000 per year. Planning to hire employees within the next 90 days is another trigger. Its application fee varies, with extra fees for each endorsement.

The license brings a Unified Business Identifier number for taxes and changes to the business. Online applications take about 10 business days, and city or state endorsements can add 2 to 3 weeks. Washington files nothing for a sole proprietorship at the Secretary of State and sends those owners to the Department of Revenue.

Delaware: separate agencies

Delaware requires any person or entity conducting a trade or business in the state to hold a license from the Division of Revenue. A separate agency handles the entity. Corporations, partnerships and LLCs must also register with the Division of Corporations.

A Delaware LLC files no annual report but pays an annual tax of $300, due no later than June 1. The business license is on a different clock. Most expire each December 31.

Delaware adds layers. A city or county may require its own license, and a professional license does not replace the state one. The state taxes the gross receipts of most businesses and has no state sales tax. A change of legal entity, such as sole proprietorship to corporation, needs a new license.

Los Angeles: a city tax certificate

Los Angeles requires every individual or entity doing business in the city to hold a Business Tax Registration Certificate from its Office of Finance. An LLC must also register with the California Secretary of State, so the city certificate sits on top of the state filing.

The first year of new business activity is not exempt from tax. That first year's tax is paid when the certificate is renewed. A business with global gross receipts under $100,000 that renews on time qualifies for the Small Business Exemption. The permanent certificate arrives by mail within 4 to 6 weeks, and police, fire or tobacco permits may be needed too.

Nevada: two ways to break the rules

Nevada treats the two obligations as separate violations. One is doing business as an LLC or corporation without filing formation papers. The other is doing business, as a sole proprietor or partnership for instance, without a state business license. Willful failure on either can bring a fine of not less than $1,000 and not more than $10,000.

Where licenses come from

The SBA says most small businesses need federal and state licenses and permits. Federally regulated activities need a federal license or permit from the relevant agency. State, county or city licenses depend on business activity and location.

Activities commonly regulated locally include auctions, construction, dry cleaning, farming, plumbing, restaurants, retail and vending machines. Some licenses expire after a set period. A sole proprietor using a personal legal name need not register anywhere but can still need a license.

The LLC filing cost calculator covers the formation side. For the name on the articles, see registering a company name with the state or use the business name search.

Is an LLC a business license: more questions

Do licenses and permits expire?

The SBA says some do, after a set period of time, and tells owners to keep close track of when they need to renew them.

Which businesses face local license rules?

The SBA lists auctions, construction, dry cleaning, farming, plumbing, restaurants, retail and vending machines as activities commonly regulated at the local level.

Does a Delaware business license transfer to a new owner?

No. The Delaware Division of Revenue says a business license may not be transferred, and a change of legal entity needs a new license.

Next: LLC filing cost calculator and registering a company name with the state.

10 official sources
  1. U.S. Small Business Administration, guide to choosing a business name, retrieved November 12, 2026.
  2. Kentucky Secretary of State, Business Records FAQs, retrieved November 12, 2026.
  3. North Carolina, Start My Business, retrieved November 12, 2026.
  4. Washington Department of Revenue, Apply for a business license, retrieved November 12, 2026.
  5. Washington Secretary of State, Steps After Registration With The Secretary of State, retrieved November 12, 2026.
  6. Washington Secretary of State, Start a Domestic (WA) Limited Liability Company (LLC) Online, retrieved November 12, 2026.
  7. Delaware Division of Revenue, Business Licenses FAQs, retrieved November 12, 2026.
  8. Delaware Division of Corporations, How to Form a New Business Entity, retrieved November 12, 2026.
  9. City of Los Angeles Office of Finance, How to Register for a BTRC, retrieved November 12, 2026.
  10. Nevada Secretary of State, Entity Registration & Business License Compliance Reporting, retrieved November 12, 2026.