💰 Costs Explained

How Much Does a Business License Cost?

The cost depends on your city and business type. Here are real numbers — not vague ranges.

💰 Usually $25–$150 for most basic businesses
✅ The typical range
For a basic business license (sole proprietor, small LLC, freelancer, home-based, or small retail): $25 to $150 per year.
Most cities charge a flat fee. Some major cities charge based on revenue — the more you make, the more you pay.

Flat fee cities (most common)

The majority of U.S. cities charge a flat annual fee. Real examples:

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Charlotte, NC — $25/year

One of the cheapest in the country. Flat rate regardless of business size.

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Austin, TX — $0

No general business license required for most businesses. But get a Texas sales tax permit if you sell products.

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Nashville, TN — $30–$200/year

Basic businesses start at $30. Scales by business type.

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Phoenix, AZ — $50/year

Flat base fee, plus a separate state TPT license required.

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Denver, CO — $50–$100/year

Flat fee for most businesses.

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Charlotte, NC — $25/year

Flat $25 — one of the cheapest anywhere in the U.S.

Revenue-based cities (can be much higher)

Several major cities calculate your fee based on annual gross receipts:

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Los Angeles, CA

Minimum $50 for businesses under $50k revenue. Scales to $600+ for businesses making $1M+.

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San Francisco, CA

$91 base for 2025. Revenue-based fee kicks in above $100k. Can reach thousands for high-revenue businesses.

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Seattle, WA

$55 for businesses under $100k. Scales to $2,190+ for businesses over $2M. Plus $19 Washington state license.

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Portland, OR

Minimum $100. Revenue-based fee.

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Atlanta, GA

$75 for businesses under $50k. Scales by gross receipts.

⚠️ Nevada costs more than most
Nevada requires a statewide Business License ($200/year) for ALL businesses, then your city adds another $100–$500.
Total: $300–$700/year just in license fees.

What makes it more expensive?

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Food businesses

Health permits ($50–$500) + food handler certification + certificate of occupancy + general business license. A restaurant can spend $1,000+ on permits before opening.

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Contractors

State contractor license + general liability insurance + bond + local business license. Can total $500–$2,000+ depending on license type and state.

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Short-term rentals

Some cities charge significant STR permit fees ($100–$1,500) on top of the business license, plus safety inspections.

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What most small businesses actually pay

For most sole proprietors, freelancers, small LLCs, and home-based businesses, the real-world cost is $25–$100/year. The expensive stories usually involve specific industries or high-revenue businesses in revenue-based cities.

Quick answers

Yes — business license fees are generally deductible as a business expense. Keep your receipts and confirm with your accountant.
Some cities add a per-employee fee (like San Diego at $18 per employee). Others charge a flat rate regardless. Check your specific city's fee schedule.
Yes. If your state requires a statewide license (Nevada, Washington, Tennessee), that's an additional fee on top of your city fee.

Related guides

🤔
Do I Need a Business License?
Find out if this applies to you
→
📝
How to Get a Business License
The process
→
🔄
How to Renew
Don't miss your deadline
→
⚠️ Not legal advice. Rules vary by location and change frequently. Always verify with your city, county, or state office before taking any action.

⚠️ Heads up: This site explains business licensing in plain English. Not legal advice. Rules change. Always verify with your actual city or state office. Affiliate disclosure.