Business permits are issued by state authorities to ensure that business operators comply with local laws. Procedures to secure them can vary according to the state you operate your company from. Importantly, the state has the right to shut down any business that is not compliant with the law, i.e. where a business owner fails to show a valid permit.
Not every company owner will need to apply for a business license. If, for example, you’re a sole proprietor providing digital design services, you won’t need a special permit to conduct your business. However, if, for example, you sell food supplements, the state will require your business to apply for a permit because supplements can potentially pose a risk to human health.
There are two exceptions: the District of Columbia and Pennsylvania, both of which require even small business owners to register online for a general business license. Many US cities require companies to register their business name (“doing business as”). If you’re using a fictitious name, you may be required to obtain a permit from your city for it.