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How do you get a business trade license?

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Wiki User
2008-01-03 22:50:29

Let's start with the basic business license. Most cities and/or

counties may require that if you are starting a business you will

need to first acquire a business license. What is a business

license? By definition a business license is a legal authorization

in document form issued by municipal and/or state governments and

required for business operations. Don't get this confused with DBA.

So then what is a DBA?

DBA is an abbreviation for "doing business as." Certain

jurisdictions may also use the terms fictitious business name,

trade name or assumed name. DBA registration is necessary if your

business operates under a name other than its legal name.

For a corporation, LLC, or other state registered entity, the

legal name is the name on the filed articles. For all other

business entities, the legal name is the personal name of the

business owner or owners. Conducting business and opening a bank

account under any name other than your legal business name is only

possible after fulfilling your state's DBA filing requirement. And

what if you are selling items? Do most states require a state

seller's permit?

If you sell, lease personal property or sell taxable services at

a retail or wholesale level, you are required to obtain a Seller's

Permit. If you have more than one location where sales are made, a

separate license is required for each location. You must obtain a

State Employer Identification Number Also Called a State Tax Id EIN

if you:

Pay wages to one or more employees

If your business is a corporation and you are an employee of the

corporation (recommended so you can obtain all the tax free and

deductible corporate fringe benefits)

if you are a sole owner and the sole employee of your business

getting an EIN is not required as long as you report the financial

results of your business on Form 1040, Schedule C. The IRS and the

Social Security use your social security number to track

self-employment tax. A federal tax identification number (also know

as an employer identification number or EIN), is a number assigned

solely to your business by the IRS. Your tax ID number is used to

identify your business to several federal agencies responsible for

the regulation of business.

Any business offering products or services that are taxed in any

way must get a federal tax ID number. Here are some important

resources to remember when filing for any of the above documents

mentioned in this article. Just refer to the link below to get not

only just in-depth information, but also excellent professional

assistance. You won't be disappointed.

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