When Should You Get a Business License After Forming an LLC?
Wondering when to get a business license after forming your LLC? Here's the smart timing, what to check, and how to stay compliant.
Forming the LLC Comes First
Your first step is to:
- File your LLC with the state
- Get your EIN
- Open your business bank account
No license is required yet.
That part comes when you're ready to actually operate.
When to Get the License
If you're selling online or in-person
Before your first sale
If you're operating in a local space or from home
Before you advertise or open
If you're hitting income thresholds
When your state/city requires reporting
How to Know When It's Time
1
Check your city or county website
2
Search for:
business license + [your city/state]
3
Look for:
- Home-based exemptions
- General business license requirements
- Industry-specific permits
Example: Many cities only require licenses after $2,000–$5,000 in revenue.
Can You Delay It?
Sometimes.
But delaying too long can result in:
- Fines
- Account freezes (Stripe, PayPal, etc.)
- Losing access to legal protections
Smart Order of Operations
1
Form your LLC2
Get your EIN3
Open your bank account4
Check licensing requirements5
Apply before selling