Bacillus licheniformis forms spores in soil. A pathway that leads to endospore formation is initiated when the bacterium is starved. Endospore formation is actually desired and serves as a great example of prokaryotic development and differentiation. These spores are quite tolerant of heat, cold, radiation, and other environmental stresses. Under good conditions, the spores will germinate and produce vegetative cells.

B. licheniformis produces a variety of extracellular enzymes that are associated with the cycling of nutrients in nature. It is an apathogenic soil organism that is mostly associated with plant and plant materials in nature. Although it is most common to isolate this bacterium from is soil, it is believed that B. licheniformis can actually be isolated from practically anywhere since it produces highly resistant endospores that are spread around with dust.