Business Law 101 / Local Occupational License

By Albert L Kelley, Esq.

Prior to opening a new business, the business must obtain a local occupational license, sometimes referred to as a business tax application. While the state does not issue occupational licenses, cities and counties do. If your business is located in an unincorporated area, you will need a County license; if located in a city, you will need a City license and a County license (generally, you apply for the city license first, and then for your County license. The County usually will confirm with the city that the license has been issued for granting the County license). In the situation where the business is strictly online, it will be deemed to be located where the primary office or mailing address is located. Even online businesses must obtain a local occupational license.

Because getting the occupational license is essentially the last step to opening a business, you should be almost ready to start operations when applying.  For a corporation or limited liability company, the company must be registered with the Department of State before applying for your local license. All businesses must have an Employer Identification Number, except for sole proprietorship’s or single member limited liability companies which may simply use the owner’s Social Security number. If operating under a business name different than the owner’s name or the company name, a fictitious name application must be first registered with the Department of State before applying for your local business tax license. The clerk’s office will usually confirm the registration online before granting a license. In some cases, you will also need your sales tax number.  

The requirements for local occupational licenses vary based on the type of business you’re opening. Generally, every business will need a copy of a deed showing they own the property where the business is located, a commercial lease showing they are authorized to do business at that location, or a residential lease along with a letter from the landlord authorizing the operation of the business out of the property. In all situations, the property must be appropriately zoned for that type of business.  

In addition, any other license or permit that is required for the business must be obtained before getting an occupational license. For example, a restaurant will need a fire inspection as well as authorization from the Department of Health or Department of Business and Professional Regulation. A state registered business such as a cosmetologist must first have their state license. A professional office such as attorney or doctor must have a copy of their professional license. If the license is for a professional business such as a law firm or architectural firm, each individual professional within that firm must have their own occupational license. If the license is for a business such as a barbershop or salon where the employees receive a salary and commission, the individuals did not need a separate license. However, if the salon requires the individual to lease a chair within the salon, they do need a separate license.

Some businesses may qualify for a home occupational license, but this usually requires that a floor plan of the building be submitted designating what portion of the home will be used for the business (there is a limitation on how much of a home may be used).

Once issued, the local occupational license must be renewed every year.

Al Kelley is a Florida business law attorney located in Key West and previously taught business law, personnel law and labor law at St. Leo University.  He is also the author of “Basics of Business Law” “Basics of Florida’s Small Claims Court” and “Basics of Florida’s Landlord-Tenant Law” (Absolutely Amazing e-Books). This article is being offered as a public service and is not intended to provide specific legal advice.  If you have any questions about legal issues, you should confer with a licensed Florida attorney.

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