A Complete Guide Licensing for Freelancers by States

There is an actual increase in jobs outside of the standard contract lines in this digitalized work. People prefer their comfort and try to get jobs on a contract or project basis. This gives them the freedom to work whenever and wherever they want. Even if the contract is for a full-time position, the working conditions and documentation process differ significantly. However, the differences bring with them different taxation criteria as well as license requirements. The latter varies by state, but one thing is generic: almost all freelancers require a business license. To save you time and guide you through the process of obtaining the licenses you require, we have created a complete guide licensing for freelancers by state.

Find out what license you need

The first step before undergoing all the legal processes as a freelancer is to check the licensure criteria. Here, if you are a private contractor, independent contractor any other type of worker, you are considered a freelancer. Thus, rather than being an employee, the law views you as a small business owner. Nearly all 50 states will require you to have a state business license. The majority of the time, this permit is adequate for freelancers, but if your company conducts services that are not typically provided by freelancers (such as sales, design, or legal consultation), you may require additional licenses. If speaking short, you may need the following permits to work as a freelancer:

• Local permits issued by the city, county, or state
• Professional and occupational licenses (Plumbing, Lawyer, etc.)
• Business License/ Seller’s Permit

Overall, we recommend consulting a lawyer before beginning your career to avoid penalties and complications.

Federal and State Permits

As we have spoken already, most small businesses in the United States, including individual contract workers, require a variety of licenses and permits from federal and state agencies. Besides the general business permits, most states require freelancers to have kind of professional ones. For example, if your freelance work includes sales, you must get at least a seller’s permit at the state level. What else? Let’s check together.

Freelance Writer

Generally speaking, nearly all states do not require them to have a special permit. But, interestingly, in Philadelphia, it is a must to have one. Meanwhile, other cities may require only taxation via 1099.

Accountant or CPA

Although it is theoretically possible to operate as a freelance accountant without a license, most employers will expect you to have either of these things. What concerns CPAs, they need to pass the CPA exam in order to obtain a state license that allows them to work as a self-employed CPA.

Teaching License for Individual Contractors

More and more tutors are wondering whether they need a license to teach online or to be classified as self-employed as education moves online. Actually, it is state-dependent. For those who, for example, teach as independent contractors, a California Teaching License is a requirement. Arkansas does this in some circumstances, though, at the county or city level.

This list of professions can be eternal. Thus, you can simply check out with the U.S. Small Business Administration if your field requires you to hold any permit.

Licensing Process

The licensing procedure is simple. First and foremost, you must determine whether you require the license. Later, you must complete the application and gather the required documents to obtain your permit. If you don’t want to deal with all of the paperwork, you can hire a legal agent to assist you. In fact, most states provide online registration forms, making the process faster and easier. Don’t forget to renew your permit so that you don’t face any penalties.

DBA or Business License

As previously stated, the business license is the permit that nearly all states require. However, in some cases, a DBA permit is also required. What’s the difference between them?

A DBA is, in essence, entirely distinct from a business license. You only need a DBA if you want to operate a business under a name other than your own. Meanwhile, every company that wants to operate in a certain county must have a business license.

In its simplest form, a business license is a permit issued by the local or state government allowing you to conduct business there.

Freelancers and Taxes

According to the IRS, any freelancer in the United States is required to pay the same taxes as businesses. In any case, a freelancer must pay self-employment tax and, where applicable, take certain tax deductions. Additionally, even if you believe you have no tax liability for a particular source of income, you are still required to report it to the IRS. You will have numerous sources of income as a freelancer, including both domestic and international clients.

Now that we have a basic understanding of how freelancing works, let’s look at the main licenses that the states demand from freelancers.

Alabama

Alabama Business License

For now, Alabama does not demand a state business license from sole proprietors. However, it is a must to hold a county-level permit issued by the Clerk’s office.

Doing Business as a DBA in Alabama

A DBA must be obtained if you intend to operate your business in Alabama under a name other than the one that is registered.

Alaska

Alaska Business License

In order to legally practice their trade in Alaska, all independent contractors must obtain a business license. The local Clerk’s office typically issues the permit in a short amount of time.

Doing Business as a DBA in Alaska

If you want to run your company in Alaska under a name other than the one that is registered, you must apply for a DBA.

Arizona

Arizona Business License

Actually, obtaining a state-level business license is not a requirement for independent contractors. The county, however, might require a permit for your work.

Doing Business as a DBA in Arizona

You will undoubtedly need a DBA license in Arizona if you operate a freelance business and make deals under a company name other than the one that is registered.

Arkansas

Arkansas Business License

To work as a freelancer in Arkansas, you must possess a state business license. Here, independent contractors who sign their contracts and render services on their own are regarded as a specific category of business owners.

Doing Business as a DBA in Arkansas

All sole proprietors, LLCs, partnerships, and corporations must document a DBA in Arkansas. It permits businesses to conduct business using any other name, even one that is not their legal name.

California

California Business License

You can work as a freelancer in California without obtaining a state-level business license. But every company must register with the Secretary of State’s office. You may complete the application online or by paying a visit to the local office.

Doing Business as a DBA in California

When any other business entity, wants to conduct business and sign legal documents under a different name, a DBA is always necessary for California. If a sole proprietor uses his or her last name in the business name, that is the only situation in which this rule does not apply.

Colorado

Colorado Business License

Since they are regarded as business owners in Colorado, the majority of independent contractors also need a state business license. You will also need a license for the work you do, just like every other type of business owner.

Doing Business as a DBA in Colorado

If you want to operate your business under a different name in Colorado, you must register it with the state. If you run a nonprofit organization and have filed your articles of incorporation with the state, you might not need to register a trademark.

Connecticut

Connecticut Business License

There is no state-wide requirement for a business license for freelancers in Connecticut, so not every one of them will need a license. However, your county might need a county-level permit for some types of operations.

Doing Business as a DBA in Connecticut

Anyone operating a business in Connecticut under a DBA (name other than the registered one) is required to submit a Trade Name Certificate. You can obtain it at the neighborhood clerk’s office where you conduct business.

Delaware

Delaware Business License

In Delaware, it is a must for all freelancers to hold a state business license. You have to register the business with the Delaware Division of Revenue before you start to work as a freelancer.

Doing Business as a DBA in Delaware

A DBA license is required for anyone operating a business within the borders of the State of Delaware.

Florida

Florida Business License

The requirement for a business license in Florida varies depending on the industry you work in. You won’t typically need a state-level permit. You might need to have at least a county-level one in some counties, though.

Doing Business as a DBA in Florida

Before engaging in independent contracting in Florida, anyone and every company must register their DBA name with the Florida Department of State by Florida’s Fictitious Name Act (s.865.09, F.S.).

Georgia

Georgia Business License

Actually, Georgia does not require independent contractors to obtain a state-level business license. To operate in this area, you might need additional permits, depending on the nature of your business

Doing Business as a DBA in Georgia

Georgia law does not currently require that specific Statewide DBA names be used by any kind of company.

Hawaii

Hawaii Business License

For now, Hawaii mandates that all companies (including freelancers, small businesses, and independent contractors) obtain a general statewide license and pay the tax.

Doing Business as a DBA in Hawaii

Hawaii is one of the few states in the United States that does not require a DBA permit. Actually, you must decide whether or not you require a DBA. Overall, having one is beneficial in a variety of ways.

Idaho

Idaho Business License

As a matter of fact, Idaho doesn’t have a statewide license for businesses. However, you may be required to hold a permit at the county level based on your field of operation.

Doing Business as a DBA in Idaho

For now, Idaho is among the U.S states where it is mandatory to file a DBA. Even when opening a business account, you must provide proof of DBA.

Illinois

Illinois Business License 

Many of the freelancers in Illinois had never considered getting a business license. However, in order to have legal proof of your income and so on, you must have a permit.

Doing Business as a DBA in Illinois

If your freelance business operates under a name other than your own, you must register alternative trade names by filing for a DBA.

Indiana

Indiana Business License

Actually, having a state business license is not required for a freelance job in Indiana. However, depending on your field of operation, some counties may require you to have a permit.

Doing Business as a DBA in Indiana

If your company operates under your name, you do not need a DBA in Indiana. In all other cases, you must file a DBA and pay taxes.

Iowa

Iowa Business License

Overall, no statewide license is required for freelancers or individual contractors in Iowa. However, some fields may need statewide registration.

Doing Business as a DBA in Iowa

If you use a trademark other than your company’s legal name in Iowa, you must have a DBA.

Kansas

Kansas Business License

In Kansas, freelancers must have a valid state business permit as they are legally classified as business owners, someone who handles individual contracts.

Doing Business as a DBA in Kansas

Kansas is one of the few states in the United States where a DBA is not required.

Kentucky

Kentucky Business License

In Kentucky, nearly all freelancers need a business license issued at the city or county level. To get one, just pay a visit to the local clerk’s office and fill in an application form.

Doing Business as a DBA in Kentucky

If the owners of a sole proprietorship, LLC, or individual contractor wish to conduct business in Kentucky under a fictitious name, they must submit a DBA application.

Louisiana

Louisana Business License

Actually, if you’re a sole proprietor or a freelancer in Louisiana, you don’t need a business license. Holding a county-level business license is a requirement in some fields, though.

Doing Business as a DBA in Louisana

In most cases, you don’t even need a DBA in Louisana. However, if you operate a company under a fictitious name you must hold one.

Maine

Maine Business License

Based on the field of your operation, you will need a county-level business license issued by the Secretary of State, to operate legally as a freelancer in Maine.

Doing Business as a DBA in Maine

Maine does not currently mandate that companies have a registered name. As a result, likely, you do not possess a DBA license for your freelance business.

Maryland

Maryland Business License

In Maryland, independent contractors are required to have a business license. Since every freelancer in this country is regarded as a particular type of business owner, they are all required to register with the Secretary of State and pay taxes.

Doing Business as a DBA in Maryland

If you are operating in Maryland under a name other than your official business name, you do require a DBA.

Massachusetts

Massachusetts Business License

Freelancers in Massachusetts must have a statewide business license. As a specific category of a business owner, every freelancer here is required to register with the Secretary of State and file taxes.

Doing Business as a DBA in Massachusetts

In Massachusetts, businesses must only file a DBA at the local level.

Michigan

Michigan Business License

In Michigan, independent contractors must possess a business license from the Secretary of State. They must have a registered business and have all the taxes paid.

Doing Business as a DBA in Michigan

Formally speaking, Michigan does not demand that a DBA designation be filed at the state level.

Minnesota

Minnesota Business License

In Minnesota, mostly all business owners, including independent contractors, need to hold a statewide business license.

Doing Business as a DBA in Minnesota

Anyone who wants to do business in Minnesota under a name other than their full legal name must file a DBA application.

Mississippi

Mississippi Business License

In Mississippi, independent contractors and self-employed people are exempt from needing a business license.

Doing Business as a DBA in Mississippi

Even though doing business under an assumed name is not required in Mississippi, it is frequently crucial to file for a DBA for practical reasons.

Missouri

Missouri Business License

All independent contractors in Missouri must obtain a business license. They must all pay taxes and register with the Secretary of State.

Doing Business as a DBA in Missouri

Any business operating in Missouri under a name other than the legally registered one must hold a DBA license, with the Missouri Secretary of State.

Montana

Montana Business License

In Montana, independent contractors must hold a statewide business license.

Doing Business as a DBA in Montana

In Montana, registration is required for anyone using a business name other than their given name.

Nebraska

Nebraska Business License

The Nebraska Department of Revenue requires all businesses, including freelancers, to register (DOR).

Doing Business as a DBA in Nebraska

In the state of Nebraska, operating a business under an assumed name is not required to have a DBA.

Nevada

Nevada Business License

In Nevada, independent contractors must hold a business license. Since every freelancer in this country is regarded as a particular type of business owner, they need to register with the Secretary of State and pay taxes.

Doing Business as a DBA in Nevada

A business is defined by Nevada law as any individual who renders a service or conducts business for profit. Therefore, all independent contractors require a state-issued business license.

New Hampshire

New Hampshire Business License

In New Hampshire, independent contractors are required to have a business license. Since every freelancer in this country is regarded as a particular type of business owner, they are all required to register with the Secretary of State and pay taxes.

Doing Business as a DBA in New Hampshire

If you are operating in New Hampshire under a name other than your official business name, you do require a DBA.

New Jersey

New Jersey Business License

Anyone engaged in independent sales must apply for and receive a New Jersey business license from the Population Office. The license is issued at the state level in all other circumstances.

Doing Business as a DBA in New Jersey

For fictitious business names in New Jersey, including the firms of independent contractors, filing a DBA is required.

New Mexico

New Mexico Business License

Anyone who conducts business in New Mexico, including independent contractors, must register with the Taxation and Revenue Department.

Doing Business as a DBA in New Mexico

A DBA must be submitted to the state of New Mexico for a business to use a trading name.

New York

New York Business License

The Internal Revenue Service acknowledges freelancers to be self-employed in New York, requiring them to have a statewide business license.

Doing Business as a DBA in New York

Regardless of whether you are an independent contractor or not, DBA names offer many advantages even though they are not required in New York.

North Carolina

North Carolina Business License

Some independent contractors in North Carolina are allowed to work without a business license. But you need to have a registration certificate from the revenue department.

Doing Business as a DBA in North Carolina

According to North Carolina law, any company that needs to operate under a name other than the name of its founders must submit a DBA application.

North Dakota

North Dakota Business License

There is no general license requirement for freelancers in North Dakota. But some professions, like those of contractors, attorneys, and health care consultants, might need a permit.

Doing Business as a DBA in North Dakota

Unless you intend to run a business under a pseudonym, you don’t need to have a registered DBA name for your freelance company in North Dakota.

Ohio

Ohio Business License

Businesses must almost always register with the Ohio Secretary of State’s office to conduct business in the state of Ohio.

Doing Business as a DBA in Ohio

Any person or business operating in Ohio under a name other than the registered name is required to file a DBA with the Ohio Secretary of State.

Oklahoma

Oklahoma Business License

All business owners, including those doing freelance work, must have a valid statewide business license and be registered with the Department of Revenue.

Doing Business as a DBA in Oklahoma

In Oklahoma, a DBA is not necessary for freelance business registration. However, doing so will ensure the sole use of a name within the state.

Oregon

Oregon Business License

To operate legally in the state of Oregon, all business owners—including independent contractors—must have a current, statewide business license and register with the Department of Revenue.

Doing Business as a DBA in Oregon

In Oregon, all businesses, including freelance ones, have to register with the DOR and file a DBA. The latter is only necessary if the company’s name is different from the one that you have registered.

Pennsylvania

Pennsylvania Business License

There is no statewide business requirement for independent contractors and other business owners in Pennsylvania. On the other hand, a county or city may require to hold one.

Doing Business as a DBA in Pennsylvania

Pennsylvania law does not require a DBA registration with the Secretary of State. Some fields, however, may require one.

Rhode Island

Rhode Island Business License

For independent contractors and other business owners in Rhode Island, there are no uniform business requirements. However, it might be necessary locally.

Doing Business as a DBA in Rhode Island

You must register your DBA with the Rhode Island Department of State if you have an incorporated business, including a freelance project.

South Carolina

South Carolina Business License

Actually, South Carolina doesn’t offer a statewide business license for independent contractors. However, you must register your business with the DOR, and income cases require a permit from the county.

Doing Business as a DBA in South Carolina

Overall, South Carolina does not require the registration of a DBA for independent contractors.

South Dakota

South Dakota Business License

In South Dakota, independent contractors can generally operate legally without having a state-issued business license.

Doing Business as a DBA in South Dakota

All businesses in South Dakota, including freelancers, have to file a DBA when using a different business name according to state law.

Tennessee

Tennessee Business License

If a freelancer’s gross receipts are $10,000 or higher, they must possess a Tennessee Business License.

Doing Business as a DBA in Tennessee

In Tennessee, a DBA is typically not necessary. However, if you are operating under a name other than your legal business name, you must file a DBA.

Texas

Texas Business License

While Texas doesn’t require independent contractors to have a state-wide business license, some counties may.

Doing Business as a DBA in Texas

All corporations operating in Texas regularly under a title other than their legal name have to register a DBA with the Secretary of State.

Utah

Utah Business License

In Utah, a lot of independent contractors, particularly those who work from home, fail to obtain a business license. However, having one will help you to prevent fines and penalties.

Doing Business as a DBA in Utah

If a company wants to operate in Utah under a name other than its official “legal” name, it must apply for a DBA designation.

Vermont

Vermont Business License

Actually, Vermont law requires all the people engaged in any kind of business, including freelancing, to hold a valid Vermont Business License.

Doing Business as a DBA in Vermont

In reality, all businesses and individuals in Vermont must file a DBA in order to conduct business there.

Virginia

Virginia Business License

Actually, Virginia is one of the few states in the U.S without a statewide business license requirement for freelancers.

Doing Business as a DBA in Vermont

Anyone conducting business in Virginia under a name other than their name must have a “doing business as” (DBA) certificate.

Washington

Washington Business License

In Washington, the majority of freelance positions don’t call for a state-issued business license. If you’re applying for specialized jobs like accountancy jobs, you probably only need one.

Doing Business as a DBA in Washington

For now, Washington law requires all independent contractors who use a name other than their legal name to file a DBA.

West Virginia

West Virginia Business License

The West Virginia state tax department must issue a business registration certificate to anyone wishing to operate a business in the state, including sole proprietors and independent contractors.

Doing Business as a DBA in West Virginia

Any business that conducts operations in West Virginia under a name other than the one used to form the business must use a DBA.

Wisconsin

Wisconsin Business License

To operate legally in Wisconsin, all business owners, including independent contractors and self-employed people, must possess a state-issued business license.

Doing Business as a DBA in Wisconsin

According to Wisconsin law, any business owner who uses a fictitious business name must file a DBA, including independent contractors.

Wyoming

Wyoming Business License

The majority of independent contractors working in Wyoming do not require a business license, but there are a few exceptions depending on the type of work they perform.

Doing Business as a DBA in Wyoming

According to Wisconsin law, independent contractors don’t need to register a DBA name.