Do I need a business license to freelance?
Most US freelancers need at least one business license — typically a local 'general business license' or 'home occupation permit' from your city/county ($25-150/year). Some industries (legal, medical, contracting, real estate) require state professional licenses on top.
Whether you need a business license depends on three factors: what you do, where you live, and how you're structured.
Local business license — required in most cities/counties for any business activity, including freelancing from home. Cost: $25-150/year. Apply at your city or county clerk's office. Some cities (Las Vegas, San Francisco, Chicago) actively enforce; others rarely do.
Home occupation permit — required in many residential zones if you work from home. Usually a one-time $50-100 fee. Check your zoning office.
State professional license — required for regulated industries: lawyers, doctors, nurses, real estate agents, contractors, electricians, plumbers, cosmetologists, accountants (CPAs), financial advisors, insurance agents, daycare providers, and more.
Sales tax permit / seller's permit — required if you sell physical products or, increasingly, digital products and services. Free in most states. Apply at your state's department of revenue.
DBA (Doing Business As) — not a license, but required if you operate under a name different from your legal name (or your LLC's name). $10-100, filed with county clerk.
Federal license — only required for specific industries: alcohol/tobacco, firearms, broadcasting, trucking, agriculture.
For most freelancers (writers, designers, developers, consultants), the requirement is just a local business license + maybe a home occupation permit. Total cost: usually under $200/year. Use iContract's Compliance Monitor at /compliance to get personalized requirements for your state and industry.
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