A business license is a legal authorization that allows individuals or companies to operate a business within a specific jurisdiction. It ensures that the business complies with local regulations, zoning laws, and safety standards. Obtaining a business license often involves submitting an application and paying a fee to the local government. Different types of businesses may require different licenses, depending on their activities. For example, a restaurant may need a health permit, while a construction company might require a contractor's license. Having the appropriate licenses helps protect consumers and maintains the integrity of the marketplace.