Hey, does anyone have any thoughts on whether or not to obtain a business license for your rental and or flipping activities as a real estate investor? To be clear, I'm talking about a business license, not a real estate license which is covered on many posts here on BP. Thanks for your replies!
John, all of my flipping activities are conducted under an LLC. I do not have a business license, and never thought to until just now. I look forward to hearing what others have to say on this topic.
Our rental community (LLC with a physical location on site) is required by the city we are located in to have a business license. Every city I have done business in has required me to have a business license. This is especially triggered if you are opening a new business bank account or opening a physical location and have to deal with zoning approval or permitting. If you are a sole propriator working from home and are not a business you may not need a business license but you would be crazy to be flipping houses or owning many rental properties without being incorporated.
@John Shortridge I would definitely recommend getting a LLC or some form of business entity that will help to cover your business assets. I would also recommend speaking to an attorney who specializes in this industry who can advise you.
I know this is an old thread but wanted clarity if you guys don't mind. Definitely agree with the LLC piece but was curious about being able to have "ABC investment group" with out properties would I need business license to get a bank acct etc. hopefully this is making sense. Help is appreciated!