Every confusing business license word — explained in the simplest possible way.
Cities call the same document by totally different names. Knowing what each term actually means saves you from applying for the wrong thing — or missing something important.
The main permit your city gives you to legally operate a business there. Different cities call it different things — Business Tax Certificate, Occupational Tax Certificate, Business Tax Receipt — but they all mean the same thing.
What California cities call a business license. Same thing, different name. Issued by the city's finance office. Needs to be renewed every year.
What Florida cities call a business license. Issued by the county tax collector. Needs to be renewed annually.
Before you can open a physical business location — like a store or restaurant — your city needs to inspect it and confirm it's safe to use. This approval is the Certificate of Occupancy (CO).
If you run your business under a name that's not your own name, you need to register that name. That registration is called a DBA. It doesn't protect you legally — it just lets you use that name officially.
A free 9-digit number from the IRS that identifies your business for tax purposes. Many cities require it to apply for a business license. Get it free in 5 minutes at IRS.gov.
The total amount of money your business takes in before any expenses. Some cities calculate your business license fee based on your gross receipts — the more you make, the more you pay.
If you run a business from your house, many cities require this permit. It says your neighborhood allows business activity at your address. Usually needed before you can get a business license for your home.
A legal structure that protects your personal belongings (house, car, savings) if your business gets sued. An LLC is NOT a business license. You still need to get licensed separately.
What Georgia cities call a business license. The fee is usually based on how much money your business makes (gross receipts).
A document that lets you buy products wholesale without paying sales tax at the time of purchase — because you'll collect the tax when you sell those products to your customers.
A state registration that lets you collect sales tax from customers. Required in most states if you sell physical products. Completely separate from a business license.
⚠️ General information only — not legal advice. Always verify with your city or state office. Affiliate disclosure.