Does one need a business license in another state

11 Replies

Greeting everyone. I'm a real estate investor in Alaska. I'm looking to invest in Washington State. I have an Alaska business license. Do I need a business license for Washington State? In other words, when investigating out of state into another state does one need a business license for that state that is investing in? Say from Alaska to Washington state? Looking forward to your replies. Thank you.

@Gernot Bucheli - are you conducting business or simply owning real estate?   We have investment property in Alaska but there is no need for a business license to own it or operate it.  If you owned the business that is inside of your property, that would be a different story, but to have a license just to own property seems unnecessary to me.

@Allen S. Thank you for your reply. I simply want to own real estate, like buy and hold. And I do also like to do some wholesale in Washington. But mainly buy and hold. I don't understand when you asked, "If you owned the business that is inside of your property...." What do you mean by that?

Originally posted by @Gernot Bucheli :

Greeting everyone. I'm a real estate investor in Alaska. I'm looking to invest in Washington State. I have an Alaska business license. Do I need a business license for Washington State? In other words, when investigating out of state into another state does one need a business license for that state that is investing in? Say from Alaska to Washington state? Looking forward to your replies. Thank you.

Nope. No need for a business license in Washington if just buying and selling real estate.

But, they have a very nasty 1.78% excise tax (when I was selling in WA) when you sell. So, if you sell a $500,000 property you pay $8,900 tax just to unload the property. Also, I read they are planning on taxing your profit at 9% in addition to that. And on top of that, they hate landlords.

Why not invest where smart Alaskan's invest - Arizona. Lots of Canadians here too.

 

@Mike Baxter Thank you for your message. I have family in Washington and my mother has several rental units, so I thought I can go in and conduct some business there too. But I was not aware of the taxes. That's a great bit of knowledge.

As far as investing in Arizona that is not a bad idea, eh. How does one get started in Arizona? My wife will love the sunshine and heat -- she's Peruvian and misses the heat.

@Gernot Bucheli - For example: If you own a dry cleaning business, as well as the building that the dry cleaner operated out of.  You would need a business license for the dry cleaning business, but not to own the real estate.   As a real estate owner, I don't see the need to have a business license at all.  Unless you are conducting a business, which you are not from the sounds of it.

Originally posted by @Gernot Bucheli :

@Mike Baxter Thank you for your message. I have family in Washington and my mother has several rental units, so I thought I can go in and conduct some business there too. But I was not aware of the taxes. That's a great bit of knowledge.

As far as investing in Arizona that is not a bad idea, eh. How does one get started in Arizona? My wife will love the sunshine and heat -- she's Peruvian and misses the heat.

I got started in AZ by moving here (for the sunshine) but I've met a lot of investors from Vancouver, The Okanogan, Anchorage, and Alberta who still live in their northern communities. They invest here because of the much more reasonable housing costs, lower taxes and landlord supportive environment. I walk them through the process. If your wife is bilingual you have even more reason to enjoy Phoenix. 

Originally posted by @Gernot Bucheli :

@Mike Baxter Sounds really inviting. Yes, my wife is bilingual. And so is out son who is 4 years old. Is it possible to walk through the process virtually? Or does one need to be on site? You have my curiosity up.

Lots of people invest virtually. It's called OOS (Out of State) Investing. Lots of people from California, So Cal in particular, OOS invest in the area .The key is in finding someone tied in with locals like escrow, title, legal, insurance, repairs, contractors that actually show up, housing prices, safe neighborhoods, trends, and understanding what the investor's goals are: cash flow, growth, security, asset protection, etc. It's a question of goals, age group, investment style, available capital, understanding taxes, reducing risk, etc. I'm sending you a private message that explains a bit more. It can get pretty involved and BP prefers to keep posts more generic. Look in the upper right corner of the page and there should be a notification for you. 

 

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