Business License Same as an LLC?

by Jackie
(MO)

Question

Since I’m going to be opening a home based business, is forming my LLC the same as having my business license or is that something separate I also have to obtain?

Answer

A business license is something issued by your municipality. Business licenses usually apply only to businesses that are open to the public in some way–typically, storefront businesses.

Many home-based businesses do not need a business license.

For example, if you’re selling goods on ebay from home, you probably don’t need a business license. If you’re running a website-only business, you probably don’t need a business license.

On the other hand…

If you’re operating a child daycare facility out of your home, then yes, you probably will need a business license (along with other government licenses).

If you don’t mind sharing, what type of home based business are you operating?

I might be able to help you figure out if you even need to contact your local municipality to obtain a business license.

Furthermore, if you live in a neighborhood with a homeowner’s association, you HOA bylaws typically have rules and regulations regarding operating a business out of your home. In practical terms, your neighbors won’t likely know that your business even exists if it’s purely internet or mail order based and you don’t have lots of cars and traffic at your door front.

by: Regina


I have an organization I started in 2010 and I run out of my home called 2ndSemester! School Supply Drive.

Do I need a business license or LLC to get my EIN?

2ndSemester! is a community outreach program that provides supplies for families that may not be able to afford them. I ask for donations, people donate supplies, sometimes a dollar here and there so I can purchase supplies. Then on a date agreed upon by me and the school/organization I am working with, I pass out the supplies.

Thanks for the help!
Regina J.
by: Anonymous


I have a catering business out of my home. OK or not? Is having an LLC the same as having my business license?

Answer

No, a business license is different from an LLC.

Whether you need a business license depends on where you live (state and city) and what you are doing. As to the HOA issue, sometimes even parking a commercial work vehicle (your catering van) in your driveway can be a problem. I’d park it in the garage and doublecheck your HOA bylaws.

Return to Ask a Question About LLCs.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>