What determines which state and local permits a business needs?

Its business activities and location.

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  1. The owner's favorite color
  2. Only its federal tax form
  3. Its activities and location ✔

Why: States, counties, and cities license different activities. A restaurant, contractor, or retailer may face different rules depending on where it operates.

Huh, didn't know that: SBA says commonly regulated local activities include construction, plumbing, restaurants, retail, and vending machines.

The dad joke
Why did the plumber check city hall? The permit was in the pipeline.
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References

Answer: Its activities and location. States, counties, and cities license different activities. A restaurant, contractor, or retailer may face different rules depending on where it operates.

  1. SBA, Launch your business www.sba.gov/counseling/launch-your-business
    The licenses and permits you need from the state, county, or city will depend on your business activities and business location.
    Checked 2026-10-11.

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