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If you are about to launch a start-up, you have no doubt asked yourself, “Do I need a business license?”
No matter what type of business you own—whether it’s in a physical storefront or based online—and regardless if it’s a small or large company, you are going to need to obtain and maintain a business license (possibly more than one).
Business licenses can be complicated, so we have put together this article to address the often-confusing topic of business licenses.
What is a business license?
What is the point of a business license?
Who needs a business license?
Where can I get a business license?
How do I get a business license?
What happens if I do not obtain a business license?
What happens after I have my business license?
Our partnership with LicenseLogix makes it easy for new and existing businesses to obtain all the licenses and permits your business may need. Their Client License Information Center, or CLiC, makes it easy for you to manage the business license renewal process, thus avoiding late charges and fines.
Keep in mind that it is not just new businesses that have to think about business licenses. Existing businesses must be mindful as well. Many situations could cause your company to fall out of compliance. The following are circumstances in which the requirements of your existing business license could change, and your company could need to update its business license:
Business license compliance is an important aspect of owning a company, but it doesn’t have to be stressful or tedious. However, some governmental agencies are easier to deal with and more efficient than others.
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.
There are 8 comments left for Do I Need a Business License for My Company?Carl said: Thursday, January 31, 2019
Hi, if we are based outside the US and using a Delaware LLC for selling consulting services outside of Delaware do we need a business license?HBS Staff replied: Friday, February 1, 2019
Carl - Generally, our clients based outside the U.S. are not required to obtain a business license to conduct business outside U.S.Steven Morgan said: Monday, July 16, 2018
I want to establish an internet-based business in which I sell a service. Do I need a business license and, if so, how do I obtain one? I am based in California.HBS Staff replied: Tuesday, July 17, 2018
For business licenses and specific states' rules, it is best to contact the specific state in which you want to do business, in this case California. We suggest you contact the Small Business Administration office in California.Scott said: Thursday, June 21, 2018
I work for a contractor that sends me a 1099 . I live in Maryland but has sent me to Delaware to do work do I need a license?HBS Staff replied: Friday, June 22, 2018
We are not experts in business license issues. Your best bet is to call the Delaware Small Business Administration; they should be able to answer your question. Thanks for reading our blog!Tom Way said: Thursday, May 24, 2018
I do some occasional consulting writing software and entertainment script writing and reside in Delaware. I typically receive a number of 1099-MISC forms and report this on a Schedule C. Do I need a Delaware business license for this sort of personal, rather than formal business, work?HBS Staff replied: Tuesday, May 29, 2018
For business license information, your best bet is ton consult your local Small Business Administration office, as that information is outside the realm of our experience.Shannon Billman said: Saturday, March 17, 2018
Hi I want to have an Online business what type of licence will I need?HBS Staff replied: Monday, March 19, 2018
Your best bet is to check with the state in which the home business will be located. Each state has different requirements and guidelines. Try your local Small Business Administration office or your state's Divsion of Corporations website.
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