What is the difference between an LLC, DBA, EIN, business license, and seller’s permit?
Last updated September 27, 2026
Understand what each business registration means and why one does not replace the others.
An LLC, DBA, EIN, business license, and seller’s permit are different parts of your setup. One usually does not replace the others. An LLC is a legal business structure. A DBA is a public business name. An EIN is a federal tax ID. A business license is permission to operate in a place or industry. A seller’s permit lets you collect sales tax when your state requires it. You may need several of these, depending on what you sell, where you operate, and whether you have employees.
Steps
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Start with your business structure. Decide whether you are starting as a sole proprietor or forming an LLC or corporation. This controls your legal business name and how many later forms are filled out.
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Check your business name. If you use the exact legal name of your LLC, you may not need a DBA. If you use a different public name, your city, county, or state may require a DBA or trade name filing.
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Get an EIN if needed. An EIN is issued by the IRS. LLCs, partnerships, corporations, and employers usually need one. Some sole proprietors also get one because banks, vendors, or payment platforms ask for it.
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Check local and industry licenses. A business license is about permission to operate. It may come from your city, county, state, or a professional board. Food, childcare, salons, contractors, health services, and home-based businesses often have extra rules.
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Check sales tax registration. A seller’s permit, resale certificate, or sales tax license is separate from your EIN. It is handled by your state tax agency and depends on what you sell and where you sell it.
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Track renewals. Licenses, DBAs, and permits may need renewal. Keep copies and renewal dates in one place.
If you are still stuck
If you are not sure which items apply to your business, open your Stratify roadmap and review the setup steps for your business type. You can also ask the AI coach to help sort each item into “legal structure,” “tax ID,” “license,” “name,” or “sales tax.”