Handbook / Licenses and permits
Professional licenses: which occupations need one and how to check
Some work can be done by anyone; other work requires a license from the state. If you plan to work for yourself in a licensed occupation, the license comes first. Working without one can lead to fines, orders to stop and difficulty getting paid. This guide explains how to find out what applies to you.
Professional licenses versus business licenses
A professional or occupational license authorises you, as an individual, to practise an occupation. It is usually issued by a state licensing board.
A business license or registration authorises your business to operate in a city, county or state. See do I need a business license?.
Many self-employed professionals need both. Some states also require licensed professionals to use particular business structures.
Occupations often licensed
Licensing varies by state, but commonly covers:
- health care: doctors, nurses, therapists, counsellors, massage therapists
- legal and financial: lawyers, accountants, some financial advisers, insurance agents
- personal services: cosmetologists, barbers, nail technicians
- property: real estate agents, appraisers, home inspectors
- trades: electricians, plumbers, HVAC technicians, general contractors; see contractor licenses
- others: architects, engineers, surveyors, some childcare and security roles
Some occupations are licensed in one state and not in another.
How to check
- Use the License Finder. CareerOneStop's License Finder lets you search by occupation, license name or licensing agency in any state. It notes that license requirements vary by state.
- Go to the board. Confirm details with the state licensing board's official website.
- Check local rules. Cities and counties may add permits or registrations.
- Ask professional associations, which often publish guidance on licensing and practice rules.
The SBA's guide to licenses and permits explains how federal, state and local requirements fit together.
Typical requirements
- education or training from approved programs
- supervised experience or an apprenticeship
- an exam
- background checks for some occupations
- application fees
- proof of insurance or bonding for some trades
Allow time: some licenses take months to obtain.
Renewals and continuing education
Most professional licenses must be renewed periodically, and many require continuing education. Record:
- license number and expiry date
- continuing education requirements and deadlines
- renewal fees
Put reminders in your calendar well before deadlines. Working on an expired license can carry the same consequences as working without one.
Working across state lines
Licenses are generally state-specific. If you move, or serve clients in other states, including online, check:
- whether the other state requires its own license
- whether reciprocity, endorsement or interstate compacts apply to your occupation
- whether temporary permits are available
Online services do not automatically avoid licensing. For many licensed occupations, the location of the client matters.
Displaying your license
Many boards require you to display your license at your place of business, or show your license number on advertising, quotes or your website. Check your board's rules and keep details consistent everywhere they appear.
Insurance
Licensed professionals often need, or are required to carry, professional liability insurance. Some boards set minimum coverage.
Records
Keep copies of your license, renewal confirmations, continuing education certificates and correspondence with the board in one folder. Clients, insurers and platforms may ask for proof.
Before taking your first client
- Confirm the license you need with your state board.
- Check whether your business entity also needs to register with the board.
- Get any required insurance or bond.
- Add your license number to quotes, contracts and your website if required.
- Set reminders for renewal and continuing education.
If your occupation is not licensed
If your occupation does not require a license in your state, you may still need a general business license or registration, and some activities within your work may be regulated. Voluntary certifications from professional bodies can also build trust with clients, even when not required.
Changing occupations or adding services
Adding a new service can bring it into licensed territory. Before you expand, for example from design into architectural work, or from coaching into counselling, check whether the new service is regulated in your state.
Complaints and discipline
Licensing boards also handle complaints about licensed professionals. Keep clear records of your work and client communications, follow your board's rules on advertising and conduct, and respond promptly to any board inquiry.
Check your occupation in the License Finder and with your state board, get licensed before taking clients, track renewals and continuing education, check rules before working across states, and keep proof on file.
Questions people ask
Is a professional license the same as a business license?
No. A professional license lets you practice an occupation. A business license or registration lets your business operate in a city, county or state. You may need both.
Does a license from one state work in another?
Not automatically. Some states have reciprocity or compact agreements for certain occupations. Check each state's board.
Do online services need a license?
If the occupation is licensed, the rules generally apply based on where the client is, not just where you are. Check before serving clients in other states.
What happens if I work without a required license?
Consequences vary, but can include fines, orders to stop work, and problems enforcing payment.
Do this week
- Search your occupation in the CareerOneStop License Finder.
- Confirm the requirements with your state licensing board.
- Check whether a separate business license or entity registration is needed.
- Put renewal and continuing education deadlines in your calendar.
- Check the rules before working with clients in another state.
Sources read for this page
Published November 8, 2026. Sources checked November 8, 2026. Rules, limits and forms change; the linked page is the authority.