Surabaya is known nationally as the pioneer of e-government in Indonesia, as time goes Surabaya’s e-government started to provide online services for permits and licenses. One of the service that they provide is business license known as Surat Izin Usaha Perdagangan/Tanda Daftar Perusahan. With this service, citizens are able to take care of such licenses online. This research discussed about citizen’s level of acceptance of the online service and identifying factors that influence the acceptance of online SIUP/TDP in Surabaya using Technology Acceptance Model (TAM). The factors that influenced the acceptance level were measured through questionnaire survey for 100 respondents who already experienced the service. The data is then analysed through structural equation modelling (SEM). The result shown that 8 of 9 hypotheses are failed to be rejected. Three solutions can be proposed to improve the level of acceptance of the service namely: animated guidance, better socialization campaign, and scheduled site maintenance
