Glossary · People and paperwork
Business license
In short
A permit issued by a government agency that allows a business to operate legally within a specific jurisdiction. It's mandatory for most businesses.
What it means in a deal
Before closing, ensure the target business has all necessary and current licenses. As the buyer, you'll need to apply for new licenses or transfer existing ones in your name. Verify with local and state authorities to avoid operational delays post-acquisition.
Related terms
Common questions about Business license
- How does the SBA determine affiliation for businesses operating under a license agreement?
- Can a professional license or intellectual property I developed be valued and count towards the 10% equity?
- What if my business operates in a highly regulated industry, like childcare or medical services, requiring specific licenses?
- How does the "franchise rule" specifically apply to determine affiliation for an independent dealer or licensee model?
- Are specific certifications or licenses required for my industry for SBA 7(a) loan approval?
- Are there specific certifications or licenses required for my industry for SBA 7(a) loan approval?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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