Phase 02: Form

Business Licenses & Permits for Personal Errands & Concierge Services

7 min read·Updated January 2025

Starting your own personal errand or concierge service means freedom, but also responsibility. One common pitfall for new errand runners, personal shoppers, or senior companions is misunderstanding business licenses. You don't want to get fined for operating illegally, nor do you want to waste money on permits you don't need. This guide will walk you through exactly what licenses and permits your personal concierge business needs, whether you're working independently or expanding from a platform like TaskRabbit.

READY TO TAKE ACTION?

Use the free LaunchAdvisor checklist to track every step in this guide.

Open Free Checklist →

The Quick Answer

Most personal errand and concierge businesses, including errand runners, personal shoppers, and independent TaskRabbit operators, will need at least a general business license from their city or county. State-level licenses are less common unless you offer specialized services like in-home care beyond basic companionship. Federal licenses are almost never needed for this type of business. Start by checking your city or county's business licensing office, as local requirements are usually the most relevant for errand services.

Federal vs State vs Local: What Each Covers

Federal licenses: For personal errand and concierge services, federal licenses are almost never required. You aren't dealing with firearms, controlled substances, aviation, or complex financial trading. If your service involves transport, it's typically light local hauling, not interstate commercial shipping, so a federal DOT number isn't needed.

State licenses: Many states require a general business license to operate. If you act as a personal shopper and re-sell items to clients (rather than just purchasing with their funds and delivering), you might need a sales tax permit. If you plan to grow and hire other errand runners or assistants, you'll need to register as an employer with your state. Professional licenses (like for healthcare or real estate) are generally not needed for basic errand running or companionship. However, if your senior companion services go beyond basic tasks to include medical care, you would need specific professional certifications (e.g., CNA license).

Local licenses and permits: This is where most personal errand and concierge businesses will focus. Almost every city or county requires a general business license just to operate, sometimes called a business tax receipt or occupational license. This allows you to legally offer services like grocery runs, package deliveries, or administrative support. If you work from your home, a home occupation permit is often required to ensure your business doesn't disturb neighbors or violate residential zoning rules. These are usually low-cost, around $25-$100 annually.

Industries That Always Require Special Licenses

Most of these heavily regulated industries don't directly apply to standard personal errand and concierge services. For example:

Healthcare: Basic senior companionship (grocery shopping, social visits, light chores) typically does not require a healthcare license. However, if you provide medical care, administer medication, or offer physical therapy, you would need appropriate state-level certifications (e.g., LPN, RN, CNA). Be clear about what services you do not provide.

Food Service: You might pick up or deliver food, but you aren't preparing or serving it from your own facility, so health department permits or food handler certifications are usually not needed for your business. (The restaurants you pick up from will have them.)

Childcare: Similar to senior care, if you're providing basic care for children (e.g., picking up from school, light babysitting), check local laws. Some localities require background checks or specific permits for even casual childcare, especially if it becomes regular. Many errand services avoid this area entirely due to liability and licensing complexity.

Transportation: While you transport items and people, basic errands typically fall under personal driving, not commercial trucking or taxi services. You don't usually need a commercial driver's license (CDL) or specialized state transportation permits unless you operate large commercial vehicles or offer regular, paid passenger transport (like a taxi/rideshare service). Make sure your personal auto insurance covers business use if you drive clients, or consider a commercial policy.

Home-Based Business Considerations

Most personal errand and concierge businesses start from a home office. This makes home occupation permits and local zoning very important. Check your city or county planning department. They want to ensure your business doesn't:

Bring a lot of client traffic to your home (e.g., clients don't come to your house for package drop-offs or consultations). Have employees regularly working from your home. Have large, visible commercial vehicles parked at your home. Generate excessive noise or trash. A home occupation permit (often $25-$100 annually) legalizes your home office. Skipping this is a common mistake for errand runners; a neighbor complaint about excessive deliveries or cars can lead to fines and a cease-and-desist order. If you operate solely by driving to client locations and conducting administrative work from your home computer, you're usually fine, but still need the permit.

How to Research Your Specific Requirements

The research steps are the same for personal errand and concierge services:

Step 1: Use the SBA license and permit tool at sba.gov. Enter your state and select 'Personal Services' or a similar category (e.g., 'Concierge Services,' 'Errand Services'). This will give you a baseline.

Step 2: Check your state's business portal. Look for general state business license requirements and specific requirements if your service touches areas like senior care or transportation beyond basic errands.

Step 3: Check your city and county websites. This is often the most important step for errand runners. Look for 'general business license,' 'occupational license,' 'business tax receipt,' and 'home occupation permit.'

Step 4: If offering specialized services (e.g., senior medical care, significant child supervision), check relevant state licensing boards. For basic errands, this step is usually not needed.

Step 5: When in doubt, call. Don't guess. Call your city's business licensing office or county clerk's office. Explain your services clearly: 'I provide personal errands like grocery shopping, package delivery, and light senior companionship from my home in [your city]. What licenses do I need?'

The Verdict

For your personal errand or concierge business, getting the right licenses isn't just bureaucracy; it's protecting your income and reputation. Operating without required city or county general business licenses can lead to fines, forced closure of your new errand service, and can even void contracts you make with clients. The research usually takes only a few hours. Consider a service like Harbor Compliance if you prefer to outsource the entire process and focus on getting your first personal shopping or senior companion clients.

How to Get Started

Ready to launch your personal errand or concierge service? Start by visiting the SBA license and permit tool at sba.gov. Input your state and 'Personal Services' or 'Concierge Services' to get a customized list. Then, immediately check your city or county website for their general business license and home occupation permit applications. Apply for everything before you take on your first client; some local permits can take several weeks to process, and you want to be legally ready to serve your community.

RECOMMENDED TOOLS

SBA License and Permit Tool

Find required licenses by state and industry type

Free

Harbor Compliance

Compliance experts handle all license research and applications for you

Best for Compliance

ZenBusiness

Compliance alerts to keep your license status current

Some links above are affiliate links. We may earn a commission if you sign up — at no extra cost to you.

FREQUENTLY ASKED QUESTIONS

What happens if I operate without a required license?

Depending on your state and industry, penalties range from fines to forced business closure. In regulated industries, operating without a license can also expose you to personal liability even if you have an LLC.

How much do business licenses cost?

General business licenses typically cost $25-$200 per year. Professional licenses vary widely — a contractor license may cost $200-$500 and require passing an exam. Some licenses are free; others require bonding or insurance as a prerequisite.

Do online businesses need licenses?

Yes, depending on your state and business type. Most states require a sales tax permit if you sell products online. Some states require a business license for any business operating within the state, including online-only businesses.

Apply This in Your Checklist

Phase 4.5Get your licenses and permits

Related Guides

Form

LLC vs S-Corp vs Sole Proprietor: Which Entity to Choose

Form

ZenBusiness vs Northwest vs Bizee: Best LLC Formation Service

Form

How to Get Your EIN: IRS Direct vs Formation Services