Is a business license required to wholesale?

Question

For the states of Delaware, Pennsylvania, and New Jersey are you requires to have a business license to wholesale a property?

Jace Holt · Answer

At least in Idaho, a business licence is issued by your municipality, not your state. It is a common misconception I have seen. While the state government may have created red tape/permits specifically for real estate, there is not a statewide general business permit. They do however require a state tax ID for sales/use tax for selling in general business to end users. Check the secretary of state website of your state in question. If their website is too confusing, give the secretary of state's office a call. Hope this helps!

Thomas Anderson · Answer

It does matter what state you are in you don't need a license of any kind to wholesale a house as long as you have a contract with the seller.

James Masotti · Answer

@Prince-Jovian Antoine - Not exactly sure what you mean by business license, however here are some thoughts which may cover what you're asking.

• In some states you are required to be a licensed realtor to wholesale. To the best of my knowledge this is not the case in DE, PA, or NJ as I have talked to many wholesalers who are not licensed realtors. Of course it is possible they are all wrong and breaking the law, but I'm doubtful
• It is possible to operate a wholesaling business as a sole proprietor and claim all of your income on your personal taxes. I'd still look at extra insurance for doing this. 
• If you do choose to set up a company depending on the legal structure you choose to use, you may need to register and pay taxes in one or more states, or you may be able to disregard the entity on your taxes and just pay a filing fee. Consult a CPA and attorney regarding your options.

Did I understand correctly or did your question still not get answered?

Is a business license required to wholesale?

Most Popular Reply