Do I Need a Delaware Business License for My Delaware LLC?

By IncNow | Published July 11, 2022

Starting a new business comes with navigating new waters and that includes what licensing is required. Business licenses are often issued at the local government level and are required for you to conduct business. This license allows the governing agency to verify that you are following the rules set in place to protect the public from any malicious business activities. It also holds individuals accountable in the event that wrongdoing occurs.

Is a Delaware Business License Required for a Delaware LLC?

No, a Delaware business license will not be required for your Delaware LLC if you are not actually conducting business within Delaware’s borders. However, you may require a business license for the area in which you plan to do business.

You will want to work with the federal, state, county, municipal, and city governing bodies of your place of business to obtain your business licenses and to ensure that you are in compliance with the local regulatory authorities.

What Is a Business License?

A business license is a certificate that is provided by a governing body to authorize an entity, such as your Delaware LLC to conduct business in a particular industry. Generally, you would submit an application to the governing body that may include contact information, what specific activities do you plan to conduct in the industry, your qualifications, where and how you will be conducting business, and if you are in a regulated industry – verifying that you have also met the minimum regulatory requirements for that industry and are in good standing.

Do I Need a Business License?

Likely, yes. If you are conducting business and receiving an income from that business, it is likely required that you have a business license authorizing you to do so. Some industries issue business licenses without showing professional licensing, such as handyman services, babysitting, dog-walking, or web design. Other business licenses require that you show your professional license before the jurisdiction, such as opening a medical practice, a law office, or as an electrician.

Failing to obtain a business license could lead to penalties or restrictions from conducting business until you remedy the issue.

When deciding where to form your company, consider that Delaware has advantages over your home state that may benefit you. Go