Skip to content
Delewarellc

Compliance

EIN vs business license: clarifying what you need (and what you do not)

EIN is federal tax ID; business license is state/local permit. Most non-resident Delaware LLCs need EIN but not business license.

Zawwad profile photo
By Zawwad, Tax & Compliance Lead (pending hire, reviewed by founder), DelewarellcPublished May 15, 2026 · Last updated May 15, 2026
Reviewed by Zawwad until this role hire is complete.
EIN vs business license: clarifying what you need (and what you do not)EIN is federal tax ID; business license is state/local permit. Most non-resident Delaware LLCs need EIN but not business license.VSDelewarellcEIN vs business license: clarifyingwhat you need (and what you do not)EIN is federal tax ID; business license is state/local…

EIN: always needed

Federal EIN is required for opening US bank accounts, applying to Stripe, hiring contractors, and filing Form 5472. Every operating LLC needs EIN.

Cost: free from IRS directly; included in most formation service bundles.

Business license: depends on operations

Business licenses are state or local (city/county) permits required for specific business types or locations. Delaware itself does not require general business licenses for most LLCs.

Other states/cities may require: California (varies by city), Hawaii (general excise license), Washington state (business license), Florida (depends on activity).

Industry-specific licenses

Some industries require federal licenses: alcohol, firearms, broadcasting. Some require state licenses: real estate brokers, contractors, financial advisors. Most online business models (SaaS, ecommerce, content creation, agency) do not require industry-specific licenses.

Check NAICS code and industry-specific licensing requirements for your business activity.

Form your Delaware LLC with Delewarellc

$297 + Delaware state fee, one-time. 8-10 day turnaround. Multilingual founder-led support.

More from the Delewarellc blog