Posted by Chi Ming on December 07, 2009 at 21:55:28:
AZ is the only place I have found it so far.
Do I need a business license to invest? - Posted by Steve
Posted by Steve on December 03, 2009 at 21:33:30:
Do I need to get a business licence to flip properties? I started downloading forms to create a LLC and get a business license in my county; when it struck me, do I really need a business license to invest (ie buy/sell) in real estate?
I live in Virginia.
Re: Do I need a business license to invest? - Posted by Jack-E
Posted by Jack-E on January 08, 2010 at 16:13:50:
If your question is am I legally required to have a business license, not likely, but check with your state and local laws. As far as I know, it is not required in FL. I see no reason to have one if it is not legally required, just a needless expense.
Re: Do I need a business license to invest? - Posted by Natalie-VA
Posted by Natalie-VA on December 07, 2009 at 08:17:28:
I am in Virginia, and yes, I have a business license. Many of my competitors do not. You’re going to have to decide for yourself if you’re going to be running a legitimate, above board business.
Unfortunately, the tax is based on gross receipts, so you pay based on the sales price of the houses you sell, even if you don’t make any money.
–Natalie
Gummint greed - Posted by John Merchant
Posted by John Merchant on December 05, 2009 at 13:07:33:
Yes, I’ve seen this grasping hand of state gov reach out before and attempt to scare new LLC incorporator into also getting biz lic.
You’re sharp to catch their hand reaching for your pocket before it got it’s fingers around your $$$.
Lots of LLCs are formed and exist w/o ANY biz being done by them.
In fact the little CT Corp book “What Constitutes Doing Business”* that cites legal decisions from all over USA has legal decisions from every state that, for most part, have decreed that mere ownership (or rental)of realty is NOT DB…ergo no “biz lic” would be required.
*CT Corp gives this little annually published book to all lic. lawyers who request it and would likely be glad to give anybody else one as well.
CT’s biz is corp services so their book is essentially a terrific little ad that likely brings in lots more than its cost.
CT Corp NYC (800)624-909; www.CTAdvantage.com
Re: Gummint greed - Posted by Mark (SDCA)
Posted by Mark (SDCA) on December 07, 2009 at 13:59:03:
“(or rental)of realty is NOT DB…ergo no “biz lic” would be required.”
Not a lawyer butt… I can name a coueple of municipalities who STRONGLY disagree with this AND who aggressively pursue landlords.
DB in CA - Posted by John Merchant
Posted by John Merchant on December 07, 2009 at 15:38:18:
Presuming you’re meaning CA (you thoughtfully forgot to mention WHAT states), here’s what CT Corp Book says about CA law (in '93) so not totally up to date):
“For purposes of the CA qualification stat, 'transact intrastate biz means entering into repeated and successive transactions of its biz in this state, other than interstate or foreign commerce”. In add’n foreign corp shall not be considered to be transacting intrastate biz merely because its subsidiary transacts intrastate biz CA Corp Code Sec.191(a) and (b). CA has adopted the Model Act provision except that subs.(h) and (i) have been omitted and the time period for an isolated transctn has been increased to 180 days. CA Corp Code Sec.191(c)"
And “in the absence of a stat, the general rule is that an ordinary foreign biz corp can acquire, hold and dispose of RE w/o qualifying” and cites Davies v. Mt. Gaines Mining & Milling Co. 104 CA App.730, 286P.740 (1912).
It’d behoove you to get into the law books a little here and see if there’s any later law in CA on topic.
Going to any CA county law library and finding the CA Corp Code would take little time or effort.
I’ve often argued with (occasionally winning) city lawyers over interpretation of such when we differed.
They normally aren’t as knowledgable or as interested as I am, and when it became obvious they weren’t going to walk over me they chose to walk away.
Suggest you start with a little in-person conference with one of those city lawyers and see if you can’t get a local court citation or legal authority from him/her.
Re: DB in CA - Posted by Mark (SDCA)
Posted by Mark (SDCA) on December 07, 2009 at 18:34:38:
Its not CA… Its AZ. But the state is not the relevant entity.
Its the CITY. Yes, you can have an LLC in the state and not pay tax but if you RENT out a unit in the city then you are doing business and owe “sales tax”.