Build a Permit Calendar Before Your First Customer Arrives
The SBA lists eight steps for launching a business, and “apply for licenses and permits” is number six. By then you have usually picked a location, a structure and a name, and maybe signed a lease. That order is why founders so often meet a zoning or licensing question after the money is spent. A permit calendar fixes the sequence: one page that records which offices you asked, what each one said, what it cost and when the next action is due. This is a planning method for U.S. founders. Requirements vary by activity, city, county and state, so the calendar tells you what to ask, not what the law requires of you.
Key takeaways
- A state filing answers one question: does the entity exist? It does not tell you whether your activity or your address is allowed.
- A federal license applies when a federal agency regulates what you do. State, county and city rules depend on your activity and your location.
- Working from home does not switch off local zoning. SBA says home-based businesses usually face fewer restrictions, not none.
- For every answer, record the office, the web page, the date you checked, the fee quoted and the renewal terms. Use the issuing office’s terms, not a guess.
- Reopen the calendar before you add a service, move, or start selling into another jurisdiction.
Why a filing receipt is only one checkpoint
As of November 2026, the SBA’s “Launch your business” guide runs in this order: pick a location, choose a structure, choose a name, register the business, get tax ID numbers, apply for licenses and permits, open a bank account, get insurance. Your state registration receipt proves you filed paperwork. It says nothing about whether the city lets you run customers through a spare room, or whether your state licenses the work you plan to do.
Each step is handled by a different office, and each office answers only its own question. That is the whole case for a calendar. You stop treating “the state accepted my filing” as an answer to a question the planning department never saw.
Step 1: Write a one-paragraph description of the operation
Before you search anything, write down what you will sell, where the work happens, and who or what shows up at that address: customers, deliveries, inventory, employees. Add what you expect to offer within the next year. “Handmade goods made in a spare room, shipped to customers, with a part-time helper twice a week” gives an agency something to work with. “I’m starting an LLC” does not.
Step 2: Ask each layer its own question
The SBA says the licenses and permits you need depend on your business activities and your location, and that fees vary. Here is the layer-by-layer split we suggest, drawn from the SBA’s guide and the IRS page on tax IDs.
| Layer | Who handles it | Question to ask |
|---|---|---|
| Entity registration | State registration office (SBA offers a lookup by state) | What do I file, and what name and agent details are required? |
| Tax IDs | IRS for the EIN; state revenue agency for any state tax ID | Do I need an EIN, and does my state want its own number? |
| Federal license | The federal agency that regulates the activity | Does any federal agency regulate what I do? |
| State license or permit | State agencies; SBA suggests starting at the Secretary of State’s website | Does my planned service require a state license? |
| County or city license | Local government websites | Does my city or county require a business license or a DBA registration? |
| Zoning and location | City or county planning department | Is this activity allowed at this address, home included? |
On the federal row, SBA’s examples of regulated activity include agriculture, alcohol, aviation, firearms and explosives, commercial fisheries, maritime transportation, mining and drilling, nuclear energy, and broadcasting. Many small operations will find no match there.
On the local row, SBA says LLCs, corporations, partnerships and nonprofits may need county or city licenses or permits, and some localities also require a DBA registration. It lists activities commonly regulated locally, such as construction, plumbing, restaurants, retail and vending machines. Your category may or may not be on that list, which is the reason to ask rather than assume.
A word about the EIN
The IRS says you can get an EIN for free directly from the agency, in minutes online. SBA suggests getting it before you apply for business licenses and permits. The IRS adds that you generally need one if you have employees, and that you can request one for banking or state tax purposes even when federal law does not require it. Apply on the IRS site itself, where the number costs nothing.
Step 3: Build the calendar itself
Use a spreadsheet or a notebook, whatever you will actually open. Every requirement gets a row. Here is a layout with two illustrative entries, which are questions to resolve, not statements that you need these permissions.
| Item | Office and web page | Date checked | What they said | Fee quoted | Next action or renewal |
|---|---|---|---|---|---|
| Is my planned home use allowed? | City or county planning department | (date) | (their answer and who gave it) | (if any) | Confirm before signing a lease or adding customer visits |
| Does my planned service need a state license? | State licensing agency | (date) | (their answer) | (if any) | Use the agency’s stated renewal terms |
Two habits make this worth the trouble. First, if an office says a requirement does not apply to you, keep the explanation along with the facts you gave them. “No permit needed” is only as good as the description behind it. Second, keep a column for open questions. A blank cell is useful information. A guess in that cell is a future problem.
SBA notes that some licenses and permits expire after a set period, and advises tracking renewal dates closely, since renewing is usually easier than applying for a new one. Put the renewal date on your everyday calendar the day you receive the document.
The pre-launch checklist
- Write the one-paragraph description, including services you expect to add.
- Find your state’s registration office through SBA’s state registration lookup.
- Apply for your EIN directly with the IRS, and check whether your state needs its own tax ID.
- Check your Secretary of State’s website and your state, county and city rules for licenses that fit your activity.
- Ask your city or county planning department about zoning at the address where you will work.
- Check whether any federal agency regulates your activity.
- Record each answer with the date, the office, the web page and the fee quoted.
- Add renewal dates and an internal review date to your calendar.
When to reopen the calendar, and where to get help
Set a review date before you need one. Three events should trigger a fresh look: adding a new service, moving or changing where the work happens, and selling into another jurisdiction. Compare your current description with the one you originally checked. A changed activity can make an old answer incomplete even when your company name stays the same.
For help, SBA’s local assistance network includes Small Business Development Centers, SCORE business mentoring, Veterans Business Outreach Centers and Women’s Business Centers, and SBA describes the counseling and training as free or low cost. Ask what a given office can help with. The permit itself still comes from the agency that issues it, and SBA does not publish license fee amounts, so any fee you record should come from the office that charges it.
For legal or tax questions specific to your operation, ask a qualified local professional or the responsible agency. SBA’s guide also lists insurance as its own launch step, so put that question on the calendar too and ask an insurance professional what fits your case.
Frequently asked questions
Do I need a permit if I only sell online?
It depends on what you do and where you operate. SBA says requirements turn on your activities and location, and that zoning can still apply to a home-based business. Having no storefront does not remove the question. It changes who you ask.
Does registering my LLC give me permission to operate?
No. Registration is one step. Licenses and permits are a separate step in SBA’s sequence, and SBA says LLCs may need county or city licenses or permits on top of state registration.
How much will licenses cost?
It varies by activity and by the agency that issues the license. SBA tells founders to ask the issuing agency for specific costs. Write down the quoted fee and the date you were quoted.
How often do permits renew?
Some expire after a set period, and the issuing agency sets the schedule. Do not assume a universal annual cycle. Read the renewal instructions on the permit or the agency’s page.
Before you decide
Run the numbers on this exercise: eight launch steps, six layers of questions in the table above, one calendar. An hour with a spreadsheet beats a surprise letter from the city after your first customer shows up. Start with your description and your city’s planning department. Those two answers shape most of the rest.
Keep the scope honest. The calendar records what you checked and what is still open. It is not a determination of your legal obligations.
Sources
- Launch your business – Small Business Administration (U.S. Small Business Administration)
- Local assistance – Small Business Administration (U.S. Small Business Administration)
- State registration lookup (U.S. Small Business Administration)
- Employer identification number | Internal Revenue Service (Internal Revenue Service)
Last updated: November 2026. This article is general information, not legal or financial advice. It covers U.S. rules only, and business license and permit requirements vary by city, county and state.
