You should at a minimum, check with your local jurisdiction courthouse. For example, I am a self-employed computer consultant. In my county I am required to have a county occupational license. This is something the IRS could care less about. But for my business to legally operate in my county I am required to have an occupational license. At a cost of $22 a year, it's no big deal.
If I operate or conduct my business in any of the other surrounding counties, I am required to have an occupational license for each county I conduct business in. Again, not a big deal. But not having one can cost thousands in fines and penalties, not to mention court costs if caught operating or condicting business without the appropriate license.
