Do I Need A Business License AND An LLC?
I've been told some banks won't let you open a business account unless you have a business license, but some will. I was originally just going to use my LLC, but now I'm wondering, do I really need a business license too? Will I use it? Will not having one create problems with the govt?
Thanks,
Ginnie
[addsig]
Generally you do not need a business license to buy and sell real estate for your own account. You almost certainly will not need one to open a bank account if you have a LLC.
A business license, as far as I know (there may be states where this is not true), is generally issued by the municipality in which you do business. They are issued to stores and resturants and other retail establishments mostly so that the city knows where to send inspectors and where to collect tax revenue. Every municipality I am aware of exempts real estate transactions (with the exception of real estate brokers) from needing business licenses.
You may need a business license if you wish to be your own general contractor in a house you do not occupy yourself.
Your bank is unlikely to ask you for your business license. However if they do you have two alternatives, 1) go buy a license (they are generally not very expensive, even Chicago, where the city government is always on the lookout for more revenue-enhancing fees, only charges $100 per year), 2) explain to the bank (in writing if necessary) that you only engage in "exempt activities" for which a business license is not necessary.
Hey,
I opened a bank account without a Business License. It was not a big deal.