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  4. Business Licenses and Forming LLCs

Business Licenses and Forming LLCs

Jennifer Reuting: Author

Question:

In general, is there a relationship between forming an LLC and the need to obtain a business license? Does one get a business license in the state where the LLC will live?

Answer:

This is a difficult question and the best answer is that there is no static answer. Whether or not a business is required to obtain a business license can depend on the specific jurisdiction in which the entity is filed or does business in as well as the type of business being conducted as well as other factors (number of employees, gross income, etc.).

In some states, counties, or cities, you may be required to obtain a business license even if you are only a sole-proprietor without a corporation or LLC. Sometimes one county in the a state will require a license and another one will not.

I wish i could provide a more specific answer for you, but there are literally thousands of possible licenses in different jurisdictions. Additionally, often there are a myriad of different exemptions for certain businesses or industries, for example some jurisdictions do not require film production companies to obtain business licenses as an incentive to promote filming in their jurisdictions.

I'm sorry I can't provide a more specific answer that would be under 10,000 pages. The best way to get the answer to your question is to contact the local tax authority in the jurisdiction where you conduct business and ask them what the licensing requirements are for your type of business!

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Disclaimer: This information is made available by MyLLC.com, Inc. (the "Company"), and is intended for educational purposes only, and it is not legal or tax advice. No action should be taken in reliance on any information in or on this site without verification with legal or tax counsel, after review of the facts and current law, that the action to be taken is appropriate under the circumstance. Except as expressly provided to the contrary in writing by the Company, the materials contained on this site are provided on an "as-is" basis without warranties of any kind, either express or implied. Company disclaims all other warranties, express or implied, including, without limitation, implied warranties of merchantability, fitness for a particular purpose, title and non-infringement as to the information, content and materials on and in the site. Company does not represent or warrant that materials on and in the site are accurate, complete, reliable, current or error-free.
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Nevada's Tax Laws have changed
Effective July 1st, 2015:
Be aware that if you are currently incorporated in the state of Nevada, or are considering becoming incorporated in Nevada, 2015 changes to the tax laws may directly affect and increase the costs to your business!

What is your first step? Simply choose which of the following two options applies to your business:

ALREADY INCORPORATED in the state of Nevada? 2015/08/15 - Your annual fees increased from $325 to $650, and that’s not including the Commerce Tax if it applies to your business! Further, you will now be required to file your tax return with the NV Department of Taxation with June 30th as the fiscal year, not the calendar year! Review these changes with your tax advisor immediately! If you choose to re-domicile your corporation in another state, MyLLC will file the re-domestication paperwork for you!

TRYING TO DECIDE WHICH STATE is best to incorporate your new business? MyLLC strives to provide you with up-to-date information and exceptional customer service. Contact your tax advisor to review your options and then talk to MyLLC's Incorporation Professionals to assist you in filing your articles of incorporation as well as provide you with Registered Agent services!

MyLLC is committed to assisting you in this process but you must contact us today!

Call us toll free at 888.88.MYLLC or fill out the contact form so one of our experts can help you.
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