Launching a new business is worth celebrating. But before you open your doors—and pop the bubbly—ensure you’ve got all the necessary licenses.
“You can save yourself a lot of headaches and money in the long run by being proactive,” says Angelik Edmonds, managing partner at Edmonds Law Office in Atlanta.
“If you don’t have the right professional license for your type of work, you might receive a cease and desist letter from the city—or if you don’t understand the local ordinances that apply to you, you might lose your liquor license. It all depends on your location and the nature of your business.”
Here’s what you need to know about acquiring a business license in Georgia.
What is a business license?
A business license is a government-issued document authorizing a company to operate in a specific jurisdiction. Federal, state, and local governments can require companies to get general business licenses or licenses relevant to specific activities and occupations—such as practicing law or operating a child care center.
Some businesses may also need to obtain permits—often specific licenses intended to protect public safety—that may be issued following an inspection.
Types of business licenses in Georgia
Georgia business owners may need to get a license from federal, state, and local governments and pay registration fees to operate legally. Here’s an overview of the license types you might need:
Federal licenses
The federal government requires businesses operating in specific federally regulated industries to get a license from the relevant federal agency. Agriculture, mining, alcoholic beverage sales, and transportation are all examples of federally regulated industries. The US Small Business Administration publishes additional information about regulated industries and links to corresponding agencies.
State licenses
Georgia doesn’t have a blanket business licensing requirement, so your requirements vary based on your location and business activities. You may need to obtain a professional license, business license, and seller’s permit from the state. Here’s more on each:
- Professional licenses. Professional licenses authorized by the Georgia Professional Licensing Boards Division allow an individual to practice a specific type of work, such as providing medical care or cosmetology services.
- Business licenses. Business licenses—also granted by Georgia’s Professional Licensing Boards—authorize a business to perform a specific type of work.
- Sales and Use Tax Certificate of Registration. Businesses selling tangible personal property or taxable services in Georgia must register for a Sales and Use Tax Certificate of Registration with the Georgia Department of Revenue.
Local licenses
Some local jurisdictions in Georgia require you to obtain general business licenses at the city, county, or municipal level. Certain business activities (such as selling alcoholic beverages) also require local authorization. You can consult the Georgia Municipal Association and the US Chamber of Commerce to find local government contact information and inquire about your licensing obligations.
How to apply for business licenses in Georgia
- Register your business
- Obtain an employer identification number
- Apply for federal licenses
- Apply for state licenses
- Apply for local licenses
Obtaining the necessary licenses can help new businesses avoid fines or interruptions. Attorney Angelik Edmonds suggests business owners take the time to understand their requirements and invest in legal help upfront.
“I advise clients to set aside at least a small amount of their startup costs for legal fees, just to make sure they’re going in the right direction,” she says. “It’s going to cost you a few hundred dollars, but you can get advice that will help you prioritize your budget and avoid potential fees or fines later on.”
These five steps can help you identify your requirements and apply for the necessary licenses:
1. Register your business
Some business entities are legally required to register with the Georgia Secretary of State (SOS). If you operate a corporation, limited partnership (LP), or limited liability company (LLC), visit the Georgia SOS’s Corporations Division to begin the registration process.
You can register online through Georgia’s services portal or by mail for a $10 registration fee. Registered businesses are also required to file an annual registration.
If you operate a general partnership or a sole proprietorship, you aren’t required to register your business with the state. Instead, you may file a DBA (doing business as) to open a business bank account and receive payments under your business name instead of your personal name.
2. Obtain an employer identification number
If you operate a business entity other than a sole proprietorship or LLC, or if your business has employees, you’re legally required to obtain an employer identification number (EIN) from the Internal Revenue Service (IRS). You can apply online for free through the IRS website, and applications are typically processed within minutes.
If you operate a sole proprietorship or LLC and don’t plan to hire any employees, you don’t need to obtain an EIN. You may choose to do so anyway to help you separate your business and personal finances. If you choose not to obtain an EIN, use your personal Social Security number as your business’s federal tax ID.
3. Apply for federal licenses
If you operate in a federally regulated industry, you may need to get a license from the federal government. Visit the US Small Business Administration website for a complete list of regulated industries and links to relevant federal agencies. You can review agency websites for specific license requirements and application instructions.
4. Apply for state licenses
If you practice a regulated profession or operate a regulated business type, you may need to obtain a state license from the relevant professional licensing board. Consult the Licensing Division of the Georgia Secretary of State to determine your requirements and apply for necessary licenses. You can also consult Georgia’s First Stop Business Guide for a complete list of regulated professions.
If you sell taxable goods or services in Georgia, you must apply for a Sales and Use Tax Certificate of Registration with the Georgia Department of Revenue. Businesses with employees may also need to register to pay withholding and unemployment insurance taxes.
You can register for all necessary tax numbers, permits, and licenses through the Georgia Tax Center, a secure online registration portal. You can also use the portal to periodically pay necessary taxes.
5. Apply for local licenses
You may need a general business license or a license to perform a specific type of work in your city or county. Some businesses also require local permits, such as occupancy or building permits. Contact your local government official to determine your requirements and access application instructions. You can consult the Georgia Municipal Association and the US Chamber of Commerce directories for contact information.
Georgia business license FAQ
Is a business license required in Georgia?
Georgia does not require a general business license, but you may need to obtain federal, state, or local licenses to operate legally. Your specific requirements depend on your exact location and business activities.
How much is a business license in GA?
Licensing costs vary by business location and type. The Georgia First Stop Business Guide provides an overview of the state’s licensing requirements and contact information for relevant licensing entities.
Can you apply for a Georgia business license online?
You can apply for many Georgia business licenses online, including professional licenses and tax permits.