Is an LLC the same as a Business License?

Jason (P) David
Last Updated: April 15, 2021
Date Published: April 14, 2021

A business license is not the same as forming an LLC (limited liability company) or other legal business entity.

An LLC is a legally recognized business entity while a business license gives you permission to engage in a specific type of business in a certain jurisdiction.

Other types of legally recognized business entities include Corporation, S Corporation, Nonprofit corporation, Sole Proprietorship, general partnership, limited liability partnership, domestic llc, etc.

Once your business is formed, you can then obtain a business license(s) that complies with local rules and regulations.

In a nutshell, a business license is a government issued document that certifies a business is safe for the public.

Business licenses can be general licenses from your State, county or municipality or local government.

Business licenses and permits are issued based on the type of business and industry you are in.

You can check with  your local government on what types of business licenses and permits are required for your business.