Can you operate a business in Georgia without a license?
No, you generally cannot operate a business in Georgia without a license. While forming a business entity, such as an LLC or corporation, is essential, it does not grant automatic permission to conduct business activities. Most businesses operating in Georgia must obtain a local business license, and sometimes additional state licenses or professional permits are necessary.
1. Georgia Does Not Offer a Statewide Business License
Unlike some states, Georgia does not issue a general state-level business license. Instead, business licenses are managed by local governments, cities or counties. If your business operates within city limits, you will likely need to obtain a license (commonly known as an Occupational Tax Certificate) from that city. If outside city limits, the license must be obtained from the county government.
2. A Business License is Required for Most Activities
Whether you are operating a retail store, restaurant, consultancy, online shop, or even a home-based business, a local license is typically required. Local governments use licensing to:
- Ensure zoning compliance
- Collect business taxes
- Track commercial activity for regulatory purposes
3. Certain Professions Require State Licensing
Businesses in regulated professions possibly need to secure licenses from relevant state agencies. Examples include:
- Medical and healthcare providers
- Legal and accounting services
- General contractors and tradespeople
- Real estate brokers and insurance agents
These are issued by boards under the Georgia Secretary of State or other specialized state departments.
Consequences of Operating Without a License
Running a business in Georgia without proper licensing can lead to:
- Administrative fines and penalties
- Denial of contracts or funding
- Suspension of business operations
- Personal liability in some cases
Incorporation alone is not sufficient to begin operating.
