Do I need business license to do Investing in my city?

[Kevin Breazeale]

I am trying to get my wholesaling business started and I wanted to know if I need a business license to operate in my city. I have read that you should obtain an LLC after you have done your first few deals. But is this needed for wholesaling? I look forward to any insight on my question.

Thank you

[Mitch Kronowit]

Originally posted by Kevin Breazeale:

I am trying to get my wholesaling business started and I wanted to know if I need a business license to operate in my city.

That depends on the city. Call them and ask or check out their web site.

Most cities will probably say, "Yes", you need a business license. And why not? Who's going to say no to another $50-100 check? However, I've seen many real estate investors just blow them off. Perhaps they think the REI business doesn't necessarily operate out of a store front on Main St. USA.

However, once you form that LLC, I would purchase that business permit unless I was absolutely sure my company didn't need it. Not only is it ethical, should your LLC ever get challenged in court, wouldn't you like to show the judge it's been a model "citizen" and operating to the letter of the law? My LLC has permits in every city where its rentals are located if required by local ordinance.