Should i get a business license or LLC [Expert Review]

Last updated : Aug 13, 2022
Written by : Sanjuanita Bankhead
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Should i get a business license or LLC

What is the disadvantage of an LLC?

Disadvantages of creating an LLC States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees. Check with your Secretary of State's office. Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.

Do I need a business license in CA?

Any business owner must obtain a general business license in the city in which your business is located. Some California cities refer to a business license as a business tax certificate. Businesses that are operated in unincorporated sections of the state must obtain their license or tax certificate on a county basis.

How much is a business license in CA?

In general, most CA small businesses will pay between $50 and $100 for a general business license. Larger corporations may be subject to charges based on their projected revenue.

Why LLC is best for small business?

An LLC lets you take advantage of the benefits of both the corporation and partnership business structures. LLCs protect you from personal liability in most instances, your personal assets — like your vehicle, house, and savings accounts — won't be at risk in case your LLC faces bankruptcy or lawsuits.

At what point do I need an LLC?

If you have business partners or employees, an LLC protects you from personal liability for your co-owners' or employees' actions. An LLC gives you a structure for operating your business, including making decisions, dividing profits and losses, and dealing with new or departing owners. An LLC offers taxation options.

How much does an LLC cost?

You can file the LLC filing documents online, by mail, or in-person when visiting the local SOS office. The filing costs usually vary from $50 to $150 which is a single-time fee. If you plan to form your company in another state, then you might have to provide additional documentation and pay a higher formation fee.

What happens if you don't have a business license in California?

Failure to obtain a Business License is a violation of Title 7 of the County of Los Angeles Code and a misdemeanor. Continued failure to comply with the requirements of Title 7 will result in fines and possible legal action.

How do I get a small business license in California?

How do you obtain a business license in California? You can obtain a California business license by accessing CalGold to find the appropriate licensing office for your location and business type. Once you've identified your licensing office, fill out and submit an application for a business license.

Do you need a business license?

Who needs a business license? Almost every company with an income stream will be required to have some type of business license, permit or registration in order to operate legally, in full compliance with government regulations. Some licenses are required of all businesses operating within a jurisdiction.

How long does it take to get business license in California?

How long does the approval process take? Review and investigation of a completed license application may take up to 45 days for a General Business License. An application is considered completed when all required information and fees have been submitted.

What is considered a small business in California?

Small businesses are defined for this profile as firms employing fewer than 500 employees.

Is it better to be self employed or LLC?

You can't avoid self-employment taxes entirely, but forming a corporation or an LLC could save you thousands of dollars every year. If you form an LLC, people can only sue you for its assets, while your personal assets stay protected. You can have your LLC taxed as an S Corporation to avoid self-employment taxes.

What are the 3 types of LLC?

  • Single-member LLC for the sole-proprietorship (solo entrepreneur)
  • Multi-member LLC (member-managed LLC or manager-member LLC)
  • Domestic LLC and Foreign LLC.
  • Series LLC.
  • L3C Company (low-profit LLC)
  • Anonymous LLC.
  • Restricted LLC.
  • PLLC and LLC.

What are the 4 main types of businesses?

The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state statute.

Should I start an LLC before making money?

Is an LLC Necessary To Start a Business? You don't need to start an LLC when establishing your business. However, if you want to differentiate between your assets and the company, an LLC is the right way to go. You should start an LLC if you want to start a business and protect your personal assets.

Do you need an LLC to write off business expenses?

What many self-employed people and small business owners don't realize is that you can still write off your business expenses without registering as an LLC.

Should I form an LLC for my hobby?

If you are transitioning from a hobby to a small business, there is a good chance you'll at least consider starting an LLC. An LLC is a structure creating a company as a separate entity from you.

What are the benefits of an LLC?

  • Personal liability protection. One of the primary benefits of forming an LLC is that it separates your personal assets from the business.
  • Inexpensive and relatively easy to form.
  • Flexible taxation.
  • Ownership and management flexibility.
  • Appropriate for individuals.

Which state has the lowest LLC tax rate?

  • Range for individual income tax rates: None.
  • Average combined state and local sales tax rate: 1.76% (no state sales tax)
  • Effective property tax rate for homes: 1.02%
  • State ranking for business-friendly legal environment: 5.
  • LLC filing fee: $250.
  • LLC annual fee: $100.

How much does it cost to create a company?

The cheapest state in the U.S. to found a company is Kentucky, where it only takes $40. Most states fall between these two extremes. It costs $100 to form an LLC in 12 states. The average cost to file an LLC across all 50 states and Washington, DC is only $122.

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Should i get a business license or LLC

Comment by Cristy Hussain

description below what we're going to be talking about what we're going to be doing without further ado notice without further ado let's get into the freaking video okay y'all y'all can already tell by the description below what we're gonna be talking about um so let's get into it this video is gonna be like a video on my facebook stat but that's because the camera is so close up to my face i had a ponytail for today's hairstyle but okay let's get into talking about this discussion so i'm coming to y'all to talk to y'all about the difference between at loc in the business license most people don't know that these are two totally different things now llc is not a business license and a lot of people think that llc is your business license it's not your business license is a whole separate thing so you got your business license over here and you got your llc over here so first we're going to talk about our llc i don't know why my hand is not like that but it's out so first we're going to talk about our llc i can put some more lip gloss on my lips because my lips feel dry but first we're going to talk about our llc so your llc yeah i just finished eating some um alfredo that i cooked last night it's so good once the flavors get settled in it but yeah still a stain on my shirt just because i waste a little drop of juice on that kind of alfredo sauce but okay your llc is like the legal side of your business and a lot of people don't know this because a lot of people just jump and they see on instagram or social media that okay this person you know got a lot of llc they don't take the time to actually go through and look up where the llc is you know just how do i say this just they don't take the time to look up information you know know things about this or no things about that they don't take the time to look up information they just go with what they see so a lot of people got their llc's and don't know what a llc really is a lot of people think a llc is a business license and it's not a llc is the legal side of your business so saying for instance i'm gonna use this as a situation so say for instance if somebody wanted to sue your business so whatever business that you had out there and you didn't have an llc yet they could take you basically for everything that you got your house your car your dog um your business um they could just take a lot of things from you with going about personal things with going about trying to sue you so your llc is put but your llc is put in place to put my glasses on because y'all it'd be hard for me okay i got the big blue eyes in the building today y'all i thought i lost my glasses i thought i lost my glasses shout out i was going to have a whole oh because you know i need my best money which is called a limited liability company and you get this llc basically it's for when the owner are not basically okay so llc is basically when the owner is basically not liable for any debts or um any debts thing any debts or somebody try to sue you the owner is not liable for that meaning like if you get sued and somebody wanted to sue you for everything that you got anything that you got that does not have to deal with your company meaning your house your car your dog cat meow fish um anything that you have they can't sue you for that you're not liable for the debts of your company uh llc is not your business license i'm going to say it again for everybody in the back i'm helping y'all out because i watched a lot of videos on stuff like this and they really don't tell you or get in depth with it and talking to you like i'm talking to you but a llc is not a business license your business license where you have to go for whatever county you in so say if you're in gwinnett county you're going to go to downtown gwinnett county to wherever basically whatever area code you stay in you're either going to go to the county or you're going to go to the courthouse to get your business license so if you're doing a business out of your house you're going to need a business license to do that business out of your house because a lot of times to get stuff you need a business license to be able to go to wholesalers and buy stuff a lot of times they ask you for your business license they don't ask you for your llc they want to see your business license a wholesaler license anything of that sort they want to see a lot of times they don't want to see your llc you need your business license so you're going to go to your county of downtown or you're going to go to the courthouse to get yours like i stay in douglas county i went to downtown douglas county to get my business license i have my business license let me clap a lot of people don't know that i wouldn't got my business license for my company yes i wouldn't got my business license you i went to the county to get my business license like my mom trying to get her business license she has to go to the courthouse to get her depending on what area code that you are in and what district basically that you're in is where you go to get yours your business license is basically if you want us to go and open up a business loan get your business loan or open up a business account you're going to need your business license to do that you're not going to need your llc to do that yeah they might type it in and see if you know your business is you know in the system but either way go your business is going to be in the system with that business license or the llc to make sure you know it's a liability company you know they just trying to see so to open up a business account you do need your business license you cannot open up your business account with the llc a llc and a business license are two different things when you go into a hair store or you go into a restaurant you're gonna see their business license hanging somewhere it's gonna be in a picture frame somewhere let me show you guys mine mine is for douglas county i'll have to group out a lot of stuff on my i don't have mine in a picture for a minute i just got it in the envelope because they're gonna give it to you okay y'all have seen this uh and plenty of times when you go to your next local hair store or you're going to a restaurant or a store you're going to see this you might see it outside somewhere they might have it put up in their office but nonetheless if you walk in a store you're going to see it so this is the envelope that it comes in and i told you i'll stay in this review so okay when you get your business license this is what it's going to say you see it's going to have this dean y'all haven't seen this in a lot of places i'm telling you this is what a business license look like um city of douglasville actually occupational tax certificate look up occupational tax is so hard for me to sit at work it's a business license i'm going to google it for you guys so you can see this is a business license business license slash occupational tax license and i'm going to show y'all where it says it at right here this is a business license plan look right here this is licensed last occupy occupational tax license that's what occupa

Thanks for your comment Cristy Hussain, have a nice day.
- Sanjuanita Bankhead, Staff Member

Comment by legalnok

licensing well first i'm not your attorney i'm not your cpa i'm just providing generally available information you can get from anywhere i got it from years of experience in this business and just research so uh learn from me but also do your own research secondly like subscribe share with a friend ask a question below any engagement you do helps us uh with visibility of this video so more people can learn uh you know get these videos out of obscurity so other people can learn as well if you've got a friend that has a specific question and we answer it send it along all right uh lastly go to get an llc tell your friend to go to get an llc if you know someone that needs an llc why wouldn't you send them to me all right to the question what is business licensing well um more government stuff really so let's say we've got hal here he owns a plumbing company he's got an llc he thinks he's done he's got a texas llc he thinks he's done he's ready to go start um doing plumbing well there are other things that you might need depending on your uh village township city county state uh government so everybody's got rules there are rules stacked on rules stacked on rules so again the more you learn about just starting a business the more hectic it feels like it becomes because there are all these other things you have to do that's why we we exist is because there's a lot of annoying things out there where there's so many different government entities you just really should be running your business let us worry about that stuff and we will worry about the mundane boring administrative stuff so we've got farnsworth here and farbsworth works for not the state of texas uh but you know maybe the county of um was a cool county i was gonna say travis that's mine harris county travis county there's one in my head that i can't think about right now it's a like hidalgo county or something cool like that goliad um any one of these counties could have a very specific rule that to be a plumber and provide plumbing services in our county you need a plumbing permit now that might not be in north carolina or south carolina or wyoming or michigan it's only in hidalgo county and texas i'm not saying they do this but this is an example you need a permit to do that um or hidalgo county phantom hidalgo county requires a permit so you've got to go trot over to the local county office and say hey i need to get this form i heard about this permit walk me through it and they will they're very helpful their state or county employees that's what they're there for so you can just call them up you can walk into their office and ask them to help you out and they will do that the problem becomes you know when you have these layers and layers of government entities that might need something so you might need a sales tax id you might need a permit for this area of your business you might need a license for this area your business and in the city but you need that permit in the county um we provide a package for that so for 125 dollars we will do the research go find you know you tell us what your business is and what location you're in and all your different branches if you have multiples and we will go out and we'll find all the different variations of permits and licenses that you might need and then we deliver a packet to you with all the forms to fill out instructions on what to do and then um and then you fill it out yourself through our instructions and then send it off and take care of that but we try to make it easy for you um but yeah that's essentially what business licensing is it's not any one thing it's any number of things that you might need so hopefully that's a good enough explanation uh if you have further questions about that go ahead and comment below and add a you know ask me to add a layer to this um but yeah if that's all to this question uh please like subscribe uh share with a friend and i'll see you next time

Thanks legalnok your participation is very much appreciated
- Sanjuanita Bankhead

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