How much does it Cost to Get a Business License

The most common question of all business-minded people is how much does it cost to get a business license?

We all know that starting a business, either small or big businesses, won’t be easy unless you are allowed by the local state government and this is by obtaining the required licenses, therefore here is your guide for the cost of acquiring a business license.

Why Businesses Required for a Business License?

Maybe you are wondering why before someone could start his or her own business, no matter how big it is, you are always hearing the term “Business License”. Handling a business requires not only capital and management skill, but also compliance to the existing law of the state. A business license is basically required for the legal operation of the business, meaning without this your business will be considered illegal and not authorized to operate. The main reason why every local government are issuing business licenses is to accumulate funds that can be used for public services like for the construction of community buildings and other basic government services.

The Cost of Acquiring a Business License to any State

The cost for a business license is based on the size of the business and to the kind of service it serves. For example, if you’re doing business in the state of Florida, the price for a business license for a small business ranges from a minimum amount of $100.00 up to $1,000.00 that may include the DBA and the EIN. The said price may also change if you will hire a business license service company to process the paperwork for you.

For you to understand better, a business license has two types:

Doing Business As (DBA). This basic license is also recognized as the “Fictitious Business Name”. DBA is generally required by most states in the United States even for small businesses that stands as sole proprietorship. The aim of obtaining a DBA is to provide a legal name for the business which is useful in conducting business transactions within the jurisdiction of the state and this really makes sense for the recognition of the business to the public. This will also eliminate some businesses to copy the registered name and to use it on illegal dealings and transactions that might affect on the good image that the business is maintaining. In addition, this will allow any business to advertise the registered name without worries as well as in creating a bank account bearing the business name.

Employer Identification Number (EIN). This type of license is commonly required for business under the entity of partnership and corporation who have several employees. Another term for EIN is Federal Tax Identification Number. If your business is under sole proprietorship and you have some workers, you are also required to obtain EIN for legal purposes.

The fee for DBA if you’re planning to conduct a small business in California is at least $119.00 and the cost for EIN is about $29.00. If you want to know the cost of business license in your state, the website of has lots of information for you, including the cost of business license for LLC, corporation, and partnership.


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