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It can be daunting to start your own business, but it's also an amazing chance to make your dreams come true. First, get a business license. Depending on how you want your company to run, you can choose between S-Corp, C-Corp, LLC, etc.
What is a business license
Every state and every city has different laws about what you can and cannot do in the workspace, so it is important to check local ordinances before opening up shop. You will need to fill out an application for a business license, and pay the fee, but after that you are ready to begin delivering your services or products!
How to get a business license for an LLC, S-Corp, or C-Corp
If you're considering forming a LLC, S-Corp, or C-Corp, there are different types of business licenses available to suit your needs. If you form an LLC, for example, you will need to apply for a general license and pay an annual fee with the Secretary of State. The Secretary of State does not require an entity to submit its Articles of Organization when applying for a general license.
With a standard C-Corporation, you will need to apply for a federal tax ID number and then register your company with the state that you choose. You'll need to contact the Secretary of State in the state and pay them the appropriate fees. The Secretary of State will collect any applicable franchise taxes depending on the county where your business is located.
A general partnership does not need a license because an individual already has one with their social security number, but there are limited liability risks involved so it's wise to have one. It would be good to have written agreements between all of the partners just in case something happens with another partner or if they want to leave.
With a sole proprietorship, you will need to apply for a sales and use tax permit and register the business with your county clerk office. This type of license doesn't require fees or any other forms of federal registration.
Why it's important to renew your license when necessary (if applicable)
The most important reason to get your business license renewed is that it is important to keep up with the latest ordinances and regulations. It's also necessary to ensure you don't violate any laws and face penalties. Depending on the type of license you have, it will be necessary to renew your business license or registration. For example, a general partnership may reapply for a new general permit every other year.
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In this post, we’ve covered the different types of business licenses and how to get one. If you need help getting a license or would like more information on any of these topics, please contact us at your convenience. We provide free consultations for all new clients and are happy to answer any questions about starting a company-or anything else related!
Call (858) 345-6338 to speak with a representative today!
