Glossary

Compliance

Business licence

A business licence is a government authorisation to conduct a particular activity in a specific jurisdiction. Requirements are set at federal, state, county and city level, and depend on the activity rather than the entity type, so a licensed trade needs one regardless of structure.

In plain terms: Permission to do a specific kind of work in a specific place.

Why it matters

Frequently overlooked because formation feels like the licensing step. It is not: forming an LLC gives you an entity, not permission to operate a regulated activity. Licensed trades operating without one face fines and forced closure.

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