Home Based Business Licensing

do you need a business license for a home based business?

I started a home based business, but I’m starting to wonder if I need a license to continue operating?
And what about taxes, how do I do that part right?
Maybe I should of done a bit more inquiring before starting this up.
I already have clients now, what do I do?

You should register your business with the secretary of state of whatever state you are in. You also need to get a tax number and an employee identification number (if you have any employees now or in the future). You can go to your state’s secretary of state website for information on legally setting up your business.

If you don’t set up your business correctly, you will be held personally liable for the actions of your business or employees. If you have any questions or need help, contact a local lawyer. Setting up a business is very easy for a lawyer to do (though you do not need to be a lawyer to do it), and it should not cost much money. Any business should have a relationship with a lawyer anyway, and this is a great way to get that relationship established… before you REALLY need it!

Vishal’s Home Based Business Story (Minneapolis, Minnesota)