<HTML>Hi, You only need a buisness license in the city you advertise in,here in CarolinaYou also only need to keep up with sales tax,if you charge sales tax.I have friend in the auto repair buisness,who said he pays tax on all parts when he buys them,therefore he doesn't have to keep track of it.( he was told this by the tax commision )That way if you replace a hammer shank and charge 10.00,write on the invoice, hammer shank replacement 10.00,instead of hammer shank .47 + .03 tax + 9.95 labor. Best, Hazen Bannister</HTML>