Q:

Do I need a business license?

A:

This answer depends upon your local government. (Lots of legal questions depend upon the specific laws in a particular place.) Smaller home based businesses might not need a business license, but your government could require one.

To illustrate this point, look at the business license requirements for two localities in which I practice. Spotsylvania County only requires a business license if you have annual gross receipts over $200,000. Most home businesses probably fall under that limit.

However, the City of Fredericksburg requires all businesses to have a license. If your gross receipts are under $50,000, you simply pay a $25 fee. But you still need a license.

It’s pretty simple to find out your business license requirements. Go to the website for the local government where your business is located. Look for the business section. You should quickly be able to find the license requirements. If they aren’t on the website, call the code compliance department. They should be able to help.

Note: If your home business has decent gross receipts, you might face some substantial fees when obtaining your business license. This is how many local governments tax businesses.

You typically don’t need a lawyer’s help to obtain your business license. But it might be quicker to contact a local business attorney, who will know exactly what you need to do. And then you’ll have one less thing to worry about.

This is a bi-weekly feature at Home Office Warrior. Now is your chance to send questions to an experienced attorney. Submit your questions to Andrew at andrew@homeofficewarrior.com or leave your comments here.

Disclaimer: Andrew Flusche is a licensed Virginia attorney, but these posts do not constitute legal advice, nor do they create an attorney client relationship. For legal advice, consult an attorney licensed in your jurisdiction.