Who need General business licenses?

Whether you’re required to get any type of license to run your business depends on where you live (and where your business is based) and what kind of goods and services you sell.

Most states don’t require a general business license—also known as business operating license—to do business in that state. However, you may still need a business license from your city or county. You may also need a license from a relevant state or federal regulatory agency to perform certain business activities, like agriculture or medicine.

If you run an online business, you register the business and obtain required online business licenses in the state and city where you base the business. If you’re a digital nomad, speak with your lawyer and accountant about the best way to set up your business.

 WHY DO YOU NEED General business license?

 A general business license is a critical component of operating a legitimate business in the United States. Here’s why obtaining one is essential:

1. Legal Authorization to Operate:In the USA, a general business license grants you the legal right to operate your business within a specific locality. It ensures that you comply with local regulations, allowing you to conduct business activities, engage in transactions, and offer goods or services legally.
2. Regulatory Compliance:Each state and municipality has its own set of rules and regulations for businesses. A general business license helps ensure you meet these regulatory requirements, including zoning laws, health and safety codes, and other local ordinances. This compliance helps you avoid fines, penalties, and potential legal issues.
3. Establishing Credibility:Having a general business license demonstrates that your business is legitimate and trustworthy. It signals to customers, vendors, and partners that you adhere to legal and regulatory standards, enhancing your business’s credibility and reputation.
4. Access to Financial Services:Most banks and financial institutions require a valid business license to open a business bank account, apply for loans, or access credit. A general business license is often a prerequisite for securing the financial resources necessary for managing and growing your business.
5. Insurance Requirements:Many types of business insurance, such as general liability or workers’ compensation insurance, require proof of a valid business license. This documentation helps ensure that your business is covered in the event of accidents, damages, or legal claims.
6. Tax Compliance:A general business license helps ensure that your business complies with local tax laws. It often involves registering with local tax authorities, which is crucial for fulfilling tax obligations, including sales tax and income tax, and avoiding potential tax issues.
7. Permit and Certification Needs:In addition to a general business license, you may need specific permits or certifications depending on your industry and location. A general business license is typically the first step in obtaining these additional approvals, such as health permits or professional licenses.
8. Business Expansion:If you plan to expand your business or open additional locations, obtaining a general business license in each new jurisdiction is usually required. This ensures that each location operates legally and complies with local regulations.
9. Legal Protection:Operating without a valid business license can expose you to legal risks, including fines, penalties, or even forced closure. Having a general business license provides legal protection by ensuring you meet all necessary requirements and avoid potential legal complications.
10. Reputation and Trust:Being licensed adds a layer of professionalism and trustworthiness to your business. It sets you apart from unlicensed competitors and helps attract customers who value working with a legally compliant and reputable business.

What We Do for Getting Your Business License ?

License Research

• Determine all the licenses and permits your business needs at the federal, state, county, and municipal levels.
• Provide you the proper license/permit application forms.
• List filing instructions, supporting document requirements, and fees.

Payment

• After completing your search for the licenses that match your business, you will be asked to complete the first part of the payment. One IBC will guide you through the next sections after receiving your first payment.
• If your license needs 2-3 payments to complete, you will be asked to complete payment steps after step 3 and 4.2 are completed.

Preparation

• Prepare government-required licensing documents. AVI Business Solutions will help you to list out the necessary documents for each different license.
• Moreover, documents related to individuals and stakeholders are also required and listed as required.

License Filings

• 4.1 Identify requirements
  • Whether your business operates as a multi-state operation or in a single location.
  • We identify all application requirements for your business license filing.
  • We determine what corporate and legal documents you need to submit with the application.
• 4.2 Complete all application forms
  • We complete all application forms and ensure supporting documents are complete.
  • On your behalf, we submit the government fees required for your business license filing.
• 4.3 Verify license is issued
  • We contact the licensing authority to ensure the business licenses are issued.
  • In case of insufficiency or rejection, we work with you and the authority to resolve the issue.

Which States Require a General Business License?

The majority of states do not have a general business license ― however, the following states do. We’ll also provide some of the relevant details about the license for each state.

Alabama: Alabama’s license is called a Business Privilege License, and it’s required for every business in the state. However, even though it’s a statewide license, it’s provided by the probate judge or license commissioner in your county office.

Alaska: Alaska’s general business license is required for all business entities operating in the state.

Delaware: Delaware’s general business license is available through the state’s business portal, OneStop.

Hawaii: Every business in Hawaii needs to get the same business license, the General Excise Tax License. The license is available through the Department of Taxation.

Maine: Maine requires a general business license, but you do not get it through the Secretary of State. Instead, you can obtain it from your city, and you can find the correct municipality through the Maine.gov Local Government portal.

Maryland: After registering with the Maryland Department of Assessments and Taxation, a new business can apply for its general business license. According to the state, a business license is “required for most businesses,” and a trader’s license is also “required for buying and reselling goods.”

Nevada: The State Business License for Nevada used to be provided by the Department of Taxation, but now it is provided and regulated by the Secretary of State. You can obtain and renew one with the state’s online business portal, SilverFlume.

Tennessee: A business must obtain a Standard Business License in Tennessee if its annual sales exceed $10,000. (Businesses with $3,000-10,000 in sales can get a Minimal Activity License instead). This is a statewide requirement, but you obtain the license through your county clerk.

Washington: All businesses need to obtain the state’s business license from the Business Licensing Service.

License Compliance

The government agency will check your records and provide additional information if necessary. After complete the information, you will receive the information that your License has been approved.

Business license compliance can be a huge burden on the day-to-day activities of your business. The licensing experts at AVI Business Solutions ensure that your company remains compliant while you focus on your business through our online web portal and our renewals team.