question Local Business License for domain business?

[domain_investor]

For those of you in the US, who are buying/selling domains as a business, I'm curious how many have a local business license. I'm asking because while I previously did not think that a county required a local business license, Im seeing now that just about all of them do. And the penalties for not having one is stiff.

Having an LLC, corp, partnership, whatever entity you have at the state and federal level, does not obviate the requirement for a business license. It does not matter if you don't have a storefront. It does not matter if you are not selling anything that generates a sales tax.

Appreciate your input.

 

[Biggie]

Hi

for domains, unless you have a storefront, then license is not required.

imo...

 

[Siful Moni]

I think most of the countries do not require any Trade license for Domain buy sell.
But many people have LLC or partnership license for their business name to make it more reliable and secure.

 

[domain_investor]

Hi

for domains, unless you have a storefront, then license is not required.

imo...

That's not true. If you are in the US, go look it up in your county and it will tell you that you need one.

 

[domain_investor]

I think most of countries do not require any Trade license for Domain buy sell.
But many people have LLC or partnership license for their business name to make it more reliable and secure.

Thanks, but my question was about the US. And the entity structure has no bearing on wether your local county government requires a business license.

 

[Siful Moni]

Thanks, but my question was about the US. And the entity structure has no bearing on wether your local county government requires a business license.

I know a few domainers from US. None of them have any license or any business papers.

 

[Biggie]

That's not true. If you are in the US, go look it up in your county and it will tell you that you need one.

Hi

why, should a sucker go to county office and ask for another yearly bill to pay to them?
they already charging high ass property taxes to pay for overinflated double-dipping pensions.

and...they probably don't even know what a domain reseller is.

imo...

 

[domain_investor]

Hi

why, should a sucker go to county office and ask for another yearly bill to pay to them?
they already charging high ass property taxes to pay for overinflated double-dipping pensions.

and...they probably don't even know what a domain reseller is.

imo...

The local municipalities need money so bad, they are looking at any source of revenue, particularly through penalties. The penalties for operating without a business license are very high, and also can include jail time (although I don't believe anyone but the worst offenders would get that). And since they local laws say pretty much everyone get one, if they find out they will come after you.

I'm sure that most people working out of the house, with an internet business, no clients coming to the door, can get away with it. But all it takes is a cross check with the state's LLC records, the county's DBA registrations, tax records...

 

[bhartzer]

You generally don't need a storefront, but if you're in the USA, then setting up an LLC or an official "business" has benefits. For example, there may be tax benefits for you (corporations tend to pay less taxes than having to pay the same as a self-employed individual). For example, setting up an LLC in the USA, you could only have to pay 10 percent taxes versus 30 percent self employment tax on income. Ask your CPA or accountant, but taxes on income could be less.

Then, there's the potential liability. What if you buy a domain for $100,000 and it's a stolen domain. And you get sued. Ask your lawyer, but I'd rather buy it through an LLC which offers some legal protections.