Business License Checklist — Free Download
LaunchLocal
Free Guide · 2026
Business License
Checklist
Everything you need to legally launch a trade or service business — from your EIN to your first permit. Check off each step as you go.
How to use this checklist: Work through each section in order — steps build on each other. Federal registration comes first, then state licensing, then local permits. Trade-specific licenses (HVAC, electrical, plumbing, etc.) run in parallel with state registration. Most businesses are fully licensed within 4–8 weeks.
Your Progress
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Step 1 — Federal Requirements
5 items
Choose your business structure
Sole proprietor, LLC, S-Corp, or C-Corp — affects taxes, liability, and licensing requirements
Get your EIN (Employer Identification Number)
Apply free at IRS.gov — instant online approval. Required for banking, hiring, and most state licenses
File your business formation documents
Articles of Organization (LLC) or Articles of Incorporation (Corp) with your Secretary of State
Register a DBA ("Doing Business As") if needed
Required if operating under a name different from your legal entity name
Open a dedicated business bank account
Legally separates personal and business finances — required for most state contractor licenses
Step 2 — State Registration
6 items
Register with the Secretary of State
File in the state where you'll primarily operate. Foreign qualification needed if operating in multiple states
Register for state taxes
State income tax ID, sales tax permit (if selling taxable goods), and payroll tax registration if hiring
Appoint a registered agent
Required in all states for LLCs/Corps — can be yourself (if in-state) or a registered agent service ($50–$300/yr)
Apply for your state contractor/trade license
HVAC, electrical, plumbing, GC, real estate — see Section 4 for trade-specific requirements
Pass required state exam (if applicable)
Most trade licenses require a written exam — schedule early, exam slots book 4–6 weeks out
Register for workers' compensation (if hiring)
Required in nearly all states the moment you hire your first employee — penalties for non-compliance are severe
Step 3 — Insurance & Bonding
6 items
General Liability Insurance
Minimum $1M per occurrence / $2M aggregate — most state licenses and client contracts require proof
Contractor's License Bond (Surety Bond)
Amount varies by state and trade — protects clients if you fail to complete work or violate license terms
Commercial Auto Insurance
Required if using vehicles for business — personal auto policies typically exclude business use
Workers' Compensation Insurance
Required in most states when you hire employees — some states require it even for solo operators in high-risk trades
Tools & Equipment Coverage
Covers theft or damage to your tools and equipment — often overlooked until something goes missing
Get Certificates of Insurance (COIs)
Clients and GCs will request these — set up with your insurer to issue COIs quickly on demand
Trade-Specific License Requirements
❄️
HVAC Contractor
EPA 608 certification + state mechanical/HVAC contractor license. Journey-level experience (2–5 yrs) typically required. Some states also require city-level registration.
⚡
Electrical Contractor
State electrical contractor license (exam required). Qualifying party must hold Master Electrician license in most states. Business license separate from individual license.
🔧
Plumbing Contractor
State plumbing contractor license. Master Plumber license required as qualifying party. Bond amounts typically $10K–$25K. Local utility registration often required.
🏗️
General Contractor
State GC license (not all states require it — TX, GA have no statewide GC license). Higher bond requirements ($25K–$100K). Local city licenses often required.
🏢
Real Estate Broker
State broker license + pre-licensing education (60–150+ hrs). Exam + background check. MLS membership + E&O insurance. Trust account for client funds required.
💉
Med Spa / Aesthetic Practice
Medical director agreement (physician oversight). State medical board CPOM rules apply. Facility inspection + DEA registration for controlled substances if applicable.
Step 4 — Local Permits & Registrations
8 items
City/County Business License
Required in most cities — separate from your state license. Annual renewal. Fee typically $50–$500/year
Zoning & Land Use Approval
Confirm your business location is zoned appropriately — home offices, warehouses, and storefronts have different zoning requirements
Building/Office Permit (if renovating)
Required for any tenant improvements or build-outs to a commercial space
Sign Permit
Most cities require a permit for any exterior signage — apply before installation
Register with local utility provider (if required)
HVAC, electrical, and plumbing contractors often must register with the local gas/electric/water utility before pulling permits
Fire Inspection / Certificate of Occupancy
Required for commercial spaces — schedule early, inspectors book out 2–4 weeks
Home Occupation Permit (if working from home)
Many cities require this even for home-based businesses with no walk-in customers
Vehicle Lettering / Fleet Registration
Some cities require commercial vehicle registration and display of license number on vehicles
Step 5 — Business Setup & Compliance
10 items
Set up accounting software
QuickBooks, Wave, or FreshBooks — track expenses from day one for tax deductions
Register your domain name & create a website
Legitimacy signal — many clients Google you before calling. Include your license number on the site
Claim your Google Business Profile
Free and critical for local SEO — shows up in "HVAC near me" searches. Verify via postcard or phone
Open a business credit card
Keeps expenses separate, builds business credit, earns rewards on fuel/supplies purchases
Draft standard client contract template
Scope of work, payment terms, change orders, lien rights — protects you legally on every job
Set up payroll system (if hiring employees)
Gusto, ADP, or Paychex — handles W-2s, payroll taxes, and direct deposit automatically
Create an Operating Agreement / Corporate Bylaws
Required for multi-member LLCs and corporations — governs ownership, decision-making, and profit distribution
File BOI Report with FinCEN
Required for most LLCs and Corps since 2024 — Beneficial Ownership Information report. Free to file at fincen.gov
Set calendar reminders for annual renewals
State license, city license, insurance, bond, and registered agent fees all have different renewal dates
Display license number on all marketing materials
Required by most state licensing boards — website, business cards, vehicle wraps, and invoices
⏱ Typical Timeline to Full Licensure
Week 1
EIN · Entity Formation · Bank Account
Week 2–3
Insurance · Bond · State Application
Week 3–5
State Exam · License Approval
Week 5–8
✓ City Permits · Ready to Operate
Want the full city-specific guide?
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This checklist covers the framework. Our city-specific guides tell you exactly which forms to file, which agency to call, and what it costs — verified for your city.
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Disclaimer: This checklist is provided for informational purposes only and does not constitute legal, financial, or professional advice. Licensing requirements, fees, and procedures vary by state, county, city, and trade — and change frequently. Always verify current requirements directly with your state licensing board and local municipality before making business decisions. LaunchLocal makes no representations as to the accuracy, completeness, or suitability of this information for your specific situation. Consult a licensed attorney or business advisor for guidance specific to your circumstances. © 2026 LaunchLocal. All rights reserved.