I'm looking to set up a tutoring business, in my town. It helps me in being with the kids as I am trying to raise money to go to school for teaching. My question is if its only a few students and a local ran business do I need a business license? I would just be tutoring kids after school, ESL students who need the extra work, or homeschooled kids whose parents need help in teaching.....

I agree with lawilson, but to be on the safe side and cover your own a$$ ( pardon my french ) I would definately get a a license to be on the safe side.
Check out this website as it might help answer some questions about your business. http://tinyurl.com/y5d6dq

It depends on the state that you live in. A business license is really only for tax purposes. Your tutoring service, is just that; a service, and you don't collect sales tax on it.

Now, if your business will make more than $8000/year, you will run into problems with the IRS if you don't report that income so that they can take their fair share in the form of income tax.

If you see this becoming a business where you want to use a business name and won't have employees, I would setup myself as a Sole Proprietor. Then, you can file a Schedule C and write off some expenses for your business. Hope that helps!