If you’re a business or want to start a business, then you need a license or several licenses. The licenses show you are approved by the municipality and state to conduct business within their jurisdiction.
There are also business licenses
that are specific to types of businesses. It’s important to know not only what
licenses to have but also when to renew a business license. If you don’t renew
your business licenses in time, then you open your business up for fines and
other issues.
We’ll examine when a business
license expires and when you need business license renewal.
Do
I Need to Renew a Business License?
This is a complicated question
because it depends on both the state and which type of business license you
have. Some licenses last as long as the business exists and others need
renewing within a specific timeline.
The most standard business license
is one you need to simply operate within city limits. In small- to mid-sized
cities, you need to speak with the city clerk to know the requirements and
renewals for your new business license.
You may also need a license from the
state as well and need to know when those expire. Many times, the governing
body provides advance notice through the mail about licenses. If you want to
know about corporate change notifications and licensing, then see more here.
Specific
Business Licenses
Many businesses require different
licenses because of the type of business they do. For example, many contracting
businesses must get a license from the contractor licensing board. There are
licenses for property brokers, insurance agents, rental car agents, etc.
The various types of licenses vary by state. Many of the licenses need renewed before the expiration
date and require a fee. That fee is increased if your business license expires.
Luckily, many state agencies have an
online portal where you can renew multiple licenses at once, get business
license approval, and pay online. The need to send an application and check
through the mail isn’t necessary.
Requiring
Multiple Licenses
You may think you have all the licenses
you need and understand when they need renewing, but that may not be the case.
Applying for the wrong business license can set back your opening by weeks or
months.
For example, some states require
liquor licenses renewed every two years, but they differentiate between bars,
caterers, and restaurants. Bars that want to sell liquor and have gambling machines would need multiple licenses from the state. Each one may
have a different renewal date.
Some states make changes to the
licenses and renewal dates and may not inform you. When you renew, you must
update your license to the new requirements.
Keep
Your Valid Business License
If you have questions about when you
renew a business license, feel free to contact your state or municipality to
find out. They want you to keep your license renewed and add income and
business to the state.
Learn more about business licenses by exploring our site.
