Almost every business needs a license or some kind of filing or permit to operate legally. Businesses need these licenses to protect the public from any perceived harm. Medical professionals need licenses so the public knows they are going to someone who is qualified to give them the right kind of medical care. You don’t want to take your dog to an unlicensed veterinarian. You probably don’t want to get a haircut from a hairdresser that doesn’t have a license either.
The problem that a business has is that if a business doesn’t have the correct license the government can come in and shut it down. You spend a lot of time and money establishing your business. If you don’t have the right permits to operate, then they’re going to close you down until you get those permits.
Additionally, with various tax filings that you need to have, it could be potentially very expensive if you don’t have the right filings set up from the beginning. It’s important to understand the tax code and how it affects you and your business.
Last, if you don’t set up your business correctly, then you could be subject to liability. Whereas, if you set up your business as a limited liability corporation or LLC, then the liability would be contained inside the assets of the corporation and all of the other things you worked so hard to get, you can hang on to.
When setting up your business, it’s important to consult with experts to ensure you get it right the first time and don’t end up paying much more down the road for mistakes made years ago. If you have any questions about business licensing requirements, you can reach out to our office.