Business licensing is a legal requirement that allows individuals or companies to operate their businesses within a specific jurisdiction. It ensures that businesses comply with local, state, and federal regulations, which can include health and safety standards, zoning laws, and tax obligations. Obtaining a license often involves submitting an application, paying a fee, and sometimes passing inspections. Different types of licenses exist depending on the nature of the business. For example, a restaurant may need a food service license, while a construction company might require a contractor's license. These licenses help protect consumers and maintain industry standards.