How do you get a business trade license?
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
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
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.