Business License and Permit Review

For Clients of Womble Bond Dickinson

State and local governments in the United States have changed how they identify and enforce business license and permit requirements. In many jurisdictions, enforcement does not always start with a complaint or an in-person inspection.

Often, it starts with data.

Many municipalities now use computer tools to identify possible missing licenses and permits. These tools may compare information from different places, such as:

Business registrations and public filings

Physical and mailing addresses

Online business listings and websites

State and local government databases

Because of this, a business may be flagged even if nothing about its day-to-day work has changed and it has not contacted the jurisdiction before.

There are more than 19,000 incorporated municipalities in the United States. Each one has the authority to impose its own license or permit requirements. As more jurisdictions share databases and use automated enforcement systems, more businesses are being identified, even if they did not have licensing problems in the past.

Please Note: This reflects a change in enforcement practices, not a change in business conduct.

Why Womble is notifying you now

In recent years, we have received more client questions about business licenses and permits. Many questions come after a surprise notice, inquiry, or delay.

Our new compliance system catalogs about 140 million laws and rules that may apply across jurisdictions. That large number shows how easy it is to miss a requirement as a business grows, changes, or operates in more than one location.

We are sharing this to explain why licensing questions are coming up more often and why they can affect businesses that have operated without problems before.

How common are licensing and permit gaps?

In administrative reviews, license and permit gaps are common. They usually occur due to normal business changes, not intentional noncompliance.

Examples Include:

Expanding into new cities or counties

Hiring remote or home-based employees

Adding new services or lines of business

Moving offices, warehouses, or job sites

Changes in ownership or entity structure

Because requirements vary by jurisdiction and activity, gaps are often unintentional. They may not be noticed until enforcement begins. Even when gaps are common, they are still enforceable once found.

What can happen if a requirement is missed?

What happens depends on the jurisdiction, but it may include:

Delays in renewals, financing, or transactions
Temporary suspension of operations until compliance is addressed
Notices or warning letters
Late fees or penalties
Insurance claims denied

Many issues can be solved quickly once found. The biggest problems often occur when gaps are identified during audits, transactions, or enforcement actions rather than through early review. Not knowing about a rule is usually not enough to excuse noncompliance.

Why state registration alone may not be sufficient

Some businesses assume state registration covers all license and permit obligations. In practice, that is not always true.

Cities, counties, and states often have separate requirements. A business can be compliant with the state and still be noncompliant locally. Requirements can change based on location, business activity, number of employees, remote or home-based work, and revenue thresholds.

Because of this, compliance is often layered. Many organizations do periodic reviews as part of sound administrative practice, especially if they operate in multiple jurisdictions.

What is being suggested

Womble is encouraging clients to consider a brief administrative review to confirm:

Which licenses and permits apply
Which licenses are active, expired, or missing
What steps may be needed to address any gaps found

The goal is to surface information and improve awareness before issues come up in audits, transactions, or enforcement settings. This is informational. It is not a legal determination.

How the review process typically works

For many organizations, the first review can be done in a short period of time. It often includes:

Sharing basic information about the business and its locations

Receiving a jurisdiction-specific list of licenses and permits that apply

Finding missing, expired, or soon-due renewals

Deciding next steps, whether handled by the business or with outside support

Sharing basic information about the business and its locations

Receiving a jurisdiction-specific list of licenses and permits that apply

Finding missing, expired, or soon-due renewals

Deciding next steps, whether handled by the business or with outside support

Who usually handles this internally?

When business owners or leaders start this kind of review, they often assign it to:

CFOs
Controllers
Office managers
Operations leaders
Compliance or administrative staff

This page is meant to give enough context so that internal teams understand why the review is being requested and what to do next.

When business owners or leaders start this kind of review, they often assign it to:

CFOs
Controllers
Office managers
Operations leaders
Compliance or administrative staff

This page is meant to give enough context so that internal teams understand why the review is being requested and what to do next.

Is this legal advice?

No. This is general information and does not constitute legal advice. License and permit requirements vary by jurisdiction and situation. Clients should consult appropriate advisors for specific questions.

Why Womble is sharing this information

Clients often want early updates about regulatory and administrative changes that may affect their operations. As enforcement practices change, Womble is sharing this resource to help clients stay informed and reduce the risk of avoidable disruption.

Next step

Clients who want to review their business license and permit status may begin here:

Review licenses and permits

Clients may proceed at their discretion or use this information for internal discussion. If questions come up, internal teams or professional advisors can help determine the appropriate course of action.