Generally a business licence is required by local or state governments to authorize business transactions within specific geographical zones. Most states however, provide exemptions for home based businesses.

If you have a home based business, you should get a business license, not only to cover yourself legally, but more importantly because your suppliers want you to verify that you are in fact a business entity.
Visit the following site to check on the specific licensing requirements for your state:
Small Business Association Business Licensing By State  

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