Obtaining a business license for fix and flip

[Account Closed]

Good evening to everyone, 

I am a beginner investor and would like to know if anyone has any suggestions on what to actually categorize your LLC as when you are trying to fix and flip and/or buy and hold property? I have a business here in Hampton Roads Virginia, however, I was given a hard time when starting it, being told that the license fees and the taxes are based on what the property sells for and if I am fix and flipping a home, that I would need a contractors license. I know others that are in the same business that do not have such licenses. I just want to make sure I am following everything to a tee since I am a beginner. Any suggestions and/or recommendations would be appreciated. Thank you

[Evan Wein]

I don't know the laws specific to VA, so you may want to consult a local lawyer, but that doesn't sound right. Contractor's licenses generally apply to people doing work on property they do not own. If you are flipping a house, presumably you own that home. You may be required to only hire licensed contractors, especially when it comes to plumbing or electric, but that depends on your local code. And then as a homeowner, you may be allowed or not to perform certain work yourself, again especially electric or plumbing, depending on local code.

As far as a general business license, I haven't heard of that being required for real estate investment or flipping, though again I don't know VA. In NY, business licenses are more oriented toward retail or certain services like cutting hair or massage.