What business licenses are commonly required?

Common Business Licenses Required in Massachusetts

Starting a business in Massachusetts requires obtaining the appropriate licenses and permits to operate legally and efficiently. The specific licenses depend on your business type, location, and industry.

Key Licensing Requirements

• General Business License: Massachusetts does not issue a general statewide business license. Instead, businesses must register with the Massachusetts Secretary of the Commonwealth and comply with local city or town licensing requirements.
• Local Business Licenses and Permits: Most cities and towns in Massachusetts require a local business certificate or license, especially for retail, food service, and professional services. Check with your city or town clerk’s office for specific requirements.
• Professional and Occupational Licenses: Certain professions such as contractors, real estate agents, healthcare providers, and cosmetologists require state-issued professional licenses. Verify with the Massachusetts Division of Professional Licensure.
• Health and Safety Permits: Businesses in food service, childcare, and healthcare must obtain health permits from the Massachusetts Department of Public Health or local health departments. These often require inspections and ongoing compliance.
• Sales Tax Permit: If your business sells taxable goods or services, register for a sales tax permit with the Massachusetts Department of Revenue to collect and remit sales tax.
• Environmental Permits: Businesses involved in manufacturing, waste management, or other environmental-impacting activities may need permits from the Massachusetts Department of Environmental Protection.

Operational Considerations

As of 2026, ensure you maintain proper recordkeeping of all licenses and permits, including renewal dates and compliance documentation. Automating reminders for renewals can help avoid lapses that disrupt operations.

Integrate licensing compliance into your onboarding and training processes, especially if you hire employees in regulated professions. This supports smooth payroll and employee classification management.