culled from:chron.com
A business license registers your business as an individual entity separate from you, which provides important legal benefits. Registering a new business usually takes little more than a mailing address and a business name, although requirements can be significantly more complex for certain business types.
Geography
Business licensing requirements and issuance are handled at the state level. Laws in each state differ slightly as to what you need and what process to follow to license a new business.Some counties and cities require additional business licenses for anyone doing business within their boundaries.
If you maintain a business presence in multiple states, you need to apply for a business license in each state. However, just having customers in other states does not mean you need to register in other states.
Business License Types
A business license is usually tied to the type of business you are forming. Options include a sole proprietorship, a limited liability company, a limited liability partnership, a C-corporation and an S-corporation.Additional License Types
Specific types of businesses require additional business licenses beyond the one required to form the company. For example, a plumber may need a contractor's license and a hairstylist may need a business license from the department of health. These requirements are also set by each state.Requirements
The basic form to apply for a business license usually requires a business name and the name of at least one owner. If you do not live in the same state where you are forming the business, you will typically need a registered agent. A registered agent is a resident of the state designated to receive official correspondence on behalf of the business, such as tax forms or legal paperwork. Companies exist in most areas to act as registered agents in exchange for an annual fee.Your state may have more specific requirements. For example, in some states a limited liability company must have at least two members, while in other states a single person can form an LLC.
These are the requirements for getting a valid business license for an enterprise.
ReplyDeleteBy: Durodola Fatai Oladosu
This explain importanc, types of business license and how to get business license for your business. By Raji Balikis Favour
ReplyDeleteThe registration of a new business usually takes little more than a mailing address and a business name, although requirements can be significantly more complex for certain business types.
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