Business Licenses and Permits Freelancers Often Miss

Forming an LLC and getting an EIN feels like the complete "set up my business properly" checklist — but licensing requirements exist at the local and state level, entirely separate from federal formation steps, and are easy to miss precisely because nothing prompts you to check.

General business license

Many cities and counties require a general business license (sometimes called a business tax certificate) simply to operate within their jurisdiction, regardless of business type — this applies to home-based freelancers too in many localities, not just storefronts.

Home occupation permit

If you run your freelance business from home, some municipalities require a home occupation permit confirming the business doesn't violate residential zoning rules (excessive client visits, signage, noise). This is frequently overlooked by freelancers since a laptop-based business feels invisible from a zoning perspective — but the requirement exists in many places regardless.

Professional and industry-specific licenses

Certain freelance fields require a specific professional license or certification beyond general business registration — this varies enormously by profession and state, so it's worth checking your specific field's requirements rather than assuming a general business license covers everything.

How to check what actually applies to you

1. Check your city or county government website for "business license" or "business tax certificate" requirements.
2. Check your state's licensing board website for your specific profession, if applicable.
3. The Small Business Administration maintains general guidance on state-by-state licensing requirements as a starting reference point.