Need business license?
Sunday, 16 August 2009 @ 12:59Still newer to the area, I need advice on if I need to apply for business license in order to freelance in Salt Lake County.
I recently received a contract which asked if I had a business license. Do I need a business license? I work as a self employed, freelance Graphic Designer. I am a sole proprietor, no one works for me. I work primarily for other agencies and occasionally directly with clients. I work both on premises and in my home studio/office. So far, I’ve only been asked to provide agencies with a W-9 form.
I Googled and found information that seamed a bit conflicting: Page 12 of this pdf it lists businesses that must register. It does not mention Graphic or Web Design. But I also found this webpage which may suggest I need to.
I’ve lived and freelanced in 2 other states and Canada, two of which I was required to collect sales tax and had to register to charge, collect and pay the tax. I’ve never been required to obtain a business license. I’ve always just used my SSN or SIN.
Peer expertise and advice on this is greatly appreciated.
I can’t speak with authority as to the law, but feel quite safe to say that no, you do not need one. I don’t know of any freelancers/contractors that have business licenses.
I am pretty sure you do need to have one, although I didn’t get mine for a couple years. When my husband and I decided to go full time and run our business from our home we applied for our license. We haven’t been asked for it but it’s pretty cheap and better than getting fined later.
I think it’s less important to clients and more important to governing agencies.
Freelancing and “going full time” are quite different though. Freelancing isn’t running a business. Freelancing is working for another business (onsite, offsite, or at home). If you set yourself up as an agency or a studio however, then yes, a business license would be in order.