ASK THE BUSINESS LICENSE GURU

By David Yount

Question:

“What types of licenses do I need to temporarily perform services in a new place?”

Answer:

When a business goes into a new jurisdiction, there are a variety of licenses that may be required to perform services. Licenses may be required on the state, county or city levels. Even if the business will only be operating for one day, they may still be subject to licensure. Common types of licenses include transient vendor, itinerant merchant, temporary sales tax permit and basic business license. Generally, all licenses must be held prior to the start of operation in the new jurisdiction.

Some states require a merchant to obtain a temporary or transient sales tax permit. Not all services are included in taxable sales, so the business should determine their sales tax liability prior to doing business in a new state. According to the New York Department of Taxation, if you expect to make taxable sales in New York State for no more than two consecutive sales tax quarters in any 12-month period, you may apply for a temporary Certificate of Authority. In Utah, All vendors participating in special events are required to obtain a Temporary Sales Tax License and Special Return from the Utah State Tax Commission.

Other states require a transient vendor/merchant license. Business must look to the state definition of a transient vendor to ensure that this license applies to services. Sometimes they are issued by the state and sometimes they are issued on the county or city level. Common application requirements include proof of foreign qualification, surety bond, and detailed business descriptions. Some applications require an inventory of goods to be sold and complete listing of employees who will work in the jurisdiction. These licenses are often issued for one year, however sometimes they are issued for shorter periods of time to cover only limited temporary activities.

Transient businesses must also be aware of all other local license requirement such as basic business licenses, privilege tax licenses, registration with local police departments, and any applicable zoning and special events permits.

LicenseLogix will help businesses determine the licenses that they need and obtain all of the licenses and registrations required, minimizing time-consuming and costly delays. For additional help you can fill in the form on the right or give us a call at (800) 292-0909.