How Is an LLC the Same or Different From a Business License?

What's the Difference Between LLCS and Business Licenses? Professional Licenses 1 for Working in Specific Roles Are Required Around 22 percent of the workforce has some type of professional license or certification. Around 45 percent of the workforce who hold an advanced degree also have a professional license or certification. The most common sectors with people who have professional licenses are education, health services and financial activities. Licenses and permits can be issued by local, state or federal agencies. Forming an LLC Is Optional LLCS are formed as a separate business entity. An LLC only needs to be formed once. You do not need to form an LLC to operate as a business. Owners can also choose to operate as sole proprietors, partnerships or corporations. Forming an LLC is recommended as it provides liability protection LLC and other benefits. Acquiring and Maintaining a Business License Is Typically Required This is regardless of Operating as a business generally the type of business: requires some types sole proprietorship, of business licenses partnership, LLC or and permits. corporation. Licenses and permits must be acquired License and permit requirements before business pendent of LLC reporting are inc and renewed on a regular basis. requirements. LLCS Are Formed at the State 4 Level, Licenses and Permits Are Issued at Various Levels LLCS are always formed to operate Licenses and permits can be issued at various levels: in a specific state, and a new foreign LLC filing must be made Federal and national level, for areas like agriculture, for additional states. alcohol, broadcasting, investment advice and exporting. State level for areas like general business licenses to operate in the state, specialized retail licenses to sell alcohol, tobacco or firearms and seller's licenses if you sell taxable goods or services. Local level by county, city or municipality in areas like local operating licenses, zoning and land use permits, building permits, fire department and health permits. Professional level for people carrying out certain licensed professional work like accountants, lawyers and doctors. incfile References https://www.bls.gov/cps/cpsaat49.htm https://www.bls.gov/cps/cpsaat51.htm https://www.bls.gow/cps/cpsaat52.htm https://www.uschamber.com/co/start/startup/business-licenses-and-permit-guide