How to Start a Home Business in 2025
Whether you're a seasoned professional or just exploring ideas, this guide will walk you through everything you need to know — from checking licensing requirements to landing your first client.
Find Your Occupation
We cover 102 occupations across all 50 states. Browse by category or search for your specific profession to see licensing requirements, fees, and training hours.
Check Your State's Requirements
Click on your state to see the exact requirements: Is a license needed? How much does it cost? How many training hours? What exams are required? We lay it all out clearly with a step-by-step checklist.
Pro tip: Even if your state doesn't require an occupational license, you may still need an LLC, home occupation permit, or business insurance. Our guides cover all of these.
Form Your LLC
An LLC (Limited Liability Company) protects your personal assets from business liabilities. Each state page includes your state's LLC formation cost and a link to the Secretary of State's filing portal.
- Protects personal assets (home, car, savings)
- Costs $50-$500 depending on your state
- Can be done online in most states
Get Permits & Insurance
Beyond licensing and LLC formation, most home businesses need:
- Home occupation permit — From your county/city zoning office ($25-$100)
- Business insurance — General liability coverage ($15-$40/month)
- EIN from IRS — Free, required for tax purposes
- State tax registration — If your state taxes services
Set Your Prices & Get Clients
Not sure what to charge? Use our free tools to figure it out:
Ready to Get Started?
Find your occupation below and see exactly what it takes to start your home business legally.
Browse All 102 OccupationsFrequently Asked Questions
Do I really need a license to work from home?
It depends on your occupation and state. Some professions like cosmetology, massage therapy, and contracting require licenses in most states. Others like tutoring, writing, or consulting typically don't. Check your specific occupation and state above.
How much does it cost to start a home business?
Total startup costs vary widely. Licensing fees range from $0 to $500+. LLC formation costs $50-$500 depending on your state. Insurance runs $15-$40/month. Most home businesses can start for under $1,000 excluding training/school costs.
Can I really run a business from my house?
Yes, but you may need a home occupation permit from your local zoning office. Most residential areas allow home businesses as long as they don't create excessive traffic, noise, or commercial activity. Check with your county clerk.
How long does it take to get licensed?
Training requirements range from 0 hours (no license needed) to 2,000+ hours (about 13 months full-time). Some states offer apprenticeship options where you can earn while you learn.
Is the information on this site accurate?
Our data comes from the Institute for Justice's License to Work 3 report and the Bureau of Labor Statistics. Each page shows when the data was last verified. However, requirements can change, so always verify with your state's official licensing board.