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Small Business Center

Business License vs. Permit: What New Business Owners Should Know

May 13, 2025

Understanding the distinction between a business license and permits — as well as your state’s specific requirements — is crucial to legally and efficiently launching and operating your business. A business license grants your company the legal authority to operate within a state, while permits govern specific activities such as food handling, zoning and environmental compliance. A recent StartupNation article outlines these key differences and offers guidance to help new business owners navigate licensing and permitting requirements based on their industry and location.

Learn about how to stay compliant in your state.

By Rebecca Meiser

Contributor, Commerce + Communities Today and Small Business Center

Small Business Center

ICSC champions small and emerging businesses in getting from business plan to brick-and-mortar.

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