Audience Question: Would a company ever need a business license audit, similar to a sales tax audit?

Amanda’s Response: I’d have to know what’s meant by “business license audit” and “sales tax audit.” We have a business license audit service in which we look at a company’s business activity and locations (whether office locations or service locations where services are rendered or products are shipped) and then research licensing from the state level down to the local level. Many companies utilize this product to get an inside look at the status of their business license compliance and where there might be gaps.

Joe’s Response: One of the many services available to our customer is an audit/gap analysis showing all the licenses a company should have in a given set of jurisdictions. We can also perform license verifications on those jurisdictions to see what licenses a company currently has and the status of those licenses.

(Author’s Note: Business Licenses, LLC was pleased to host a webinar on April 30th, 2014 to discuss emerging trends in business license compliance. During the Q&A, the audience submitted many thought-provoking questions that our panelists didn’t have time to answer. We are going to periodically post those questions to this blog along with answers from the two panelists, Amanda Mattaliano and Joe Vitulli.)

By Alan Ruttenberg

Audience Question: We recently registered and started filing sales taxes in 31 states because of our internet sales shipping to those states. Does this cause any other filing obligations?

Joe’s Response: We would need to give a closer look at each state. For example, in Delaware and The District of Columbia, nearly every business that registers for sales tax is also required to have a business license.

Amanda’s Response: Licensing is both business activity specific and location specific. For general retail businesses, filing for sales tax doesn’t necessarily make you subject to a local business license but you may have already been subject to a local business license (from the localities perspective) because of shipments of your product to customers within a locality. Now, because you are filing state sales tax returns, the local authority has an enforcement tool to know that you have a customer in their locality and you may be contacted because they want you to apply for a local business license.

(Author’s Note: Business Licenses, LLC was pleased to host a webinar on April 30th, 2014 to discuss emerging trends in business license compliance. During the Q&A, the audience submitted many thought-provoking questions that our panelists didn’t have time to answer. We are going to periodically post those questions to this blog along with answers from the two panelists, Amanda Mattaliano and Joe Vitulli.)

By Alan Ruttenberg

Audience Question: Staffing companies have units commonly referred to as “onsites” where the staffing company embeds a manager at the client site to manage temporary workers. Many jurisdictions want a CO or other occupancy permit before they approve a business license. The problem is that the staffing company has no lease and cannot grant permission for the fire marshall or building inspector to visit the client site. Any insight?

Amanda’s Response: In some jurisdictions there is a different application which is for “out of city” licensees. This is for companies who are not located in the city although they may have employees coming into the city or working at a client site. If there is no “out of city” form, you can use the corporate address as the business location so they know you are not physically loated in the city and then submit that you have X number of employees working at a client site.

Joe’s Response: I have seen in some jurisdictions that the staffing company may be covered under the building’s CO or the client’s business license for the site, but then the staffing company gets a license for their headquarters even if it is outside the jurisdiction. It will ultimately depend on the jurisdiction to decide how they want to handle the situation.

(Author’s Note: Business Licenses, LLC was pleased to host a webinar on April 30th, 2014 to discuss emerging trends in business license compliance. During the Q&A, the audience submitted many thought-provoking questions that our panelists didn’t have time to answer. We are going to periodically post those questions to this blog along with answers from the two panelists, Amanda Mattaliano and Joe Vitulli.)

By Alan Ruttenberg

Audience Question: Our head office is in Canada but I find many jurisdictions in The United States are reluctant to send licenses to Canada even though we have indicated Canada as our mailing address. They will send them to our local branches in the U.S. even though they are not set up to handle them. We end up getting them late.

Joe’s Response: This is a common problem that is not unique to Canada. American companies often have a similar problem with certificates, renewal statements, and tax returns being sent to local addresses rather than corporate headquarters. This is why we employ people to hunt down copies of the renewed licenses and/or renewal forms so that our customers don’t have to do it themselves!

Amanda’s Response: Yes, we see this a lot… not only with businesses who have international mailing addresses but also with businesses that are required to get a local business license for a facility that can’t accept mail. This is very frustrating for many companies and it’s definitely a data point in favor of the argument that jurisdictions are not getting smarter (an online option to print a renewed license could help).

(Author’s Note: Business Licenses, LLC was pleased to host a webinar on April 30th, 2014 to discuss emerging trends in business license compliance. During the Q&A, the audience submitted many thought-provoking questions that our panelists didn’t have time to answer. We are going to periodically post those questions to this blog along with answers from the two panelists, Amanda Mattaliano and Joe Vitulli.)

By Alan Ruttenberg

Audience Question: I’ve seen some jurisdictions request subcontractor listings this year. Have you noticed that from many jurisdictions?

Amanda’s Response: It’s part of a broader effort to achieve greater licensing enforcement. An authority that has one company applying for a license tries to get info about other companies by requesting things like subcontractor listings and supplier lists.

Joe’s Response: Many jurisdictions require subcontractors to be licensed and many others require the general contractor to be licensed even when not preforming actual work. This is an area ripe for enforcement since, in many instances, both the general and subcontractor believe the other is properly licensed.

(Author’s Note: Business Licenses, LLC was pleased to host a webinar on April 30th, 2014 to discuss emerging trends in business license compliance. During the Q&A, the audience submitted many thought-provoking questions that our panelists didn’t have time to answer. We are going to periodically post those questions to this blog along with answers from the two panelists, Amanda Mattaliano and Joe Vitulli.)

By Alan Ruttenberg

Audience Question: I’ve started seeing local jurisdictions push responsibility to state level departments to cover business and health licensure. Do you see this as something that will be more widespread going forward?

Amanda’s Response: If this is a trend, it’s not very widespread. Perhaps contractor licensing may be an area where local licensing will move to the state level. Health licenses tend to be done at the county level (especially for restaurants) but in Florida it is done at the state level. In some areas of California, counties share a lot of responsibility for health licenses.

Joe’s Response: We have seen examples of this in a few different fields. Interestingly, we have also seen the reverse, where a state has local and county inspectors do the inspections. I see it more as convenience for the different authorities than a real trend however.

(Author’s Note: Business Licenses, LLC was pleased to host a webinar on April 30th, 2014 to discuss emerging trends in business license compliance. During the Q&A, the audience submitted many thought-provoking questions that our panelists didn’t have time to answer. We are going to periodically post those questions to this blog along with answers from the two panelists, Amanda Mattaliano and Joe Vitulli.)

By Alan Ruttenberg

Audience Question: Is there a movement, that you know of, to standardize licensing? Even at the state level?

Amanda’s Response: I honestly can’t think of any movement towards standardization of business linceses. Licensing authorities tend to have different agendas from state to state and from locality to locality which makes it hard to move in the direction of standardization.

Joe’s Response: It certainly would be nice! In the past, there have been attempts to standardize sales tax filings, especially on the federal level for online sales. Thus far, traction in those areas has been limited.

(Author’s Note: Business Licenses, LLC was pleased to host a webinar on April 30th, 2014 to discuss emerging trends in business license compliance. During the Q&A, the audience submitted many thought-provoking questions that our panelists didn’t have time to answer. We are going to periodically post those questions to this blog along with answers from the two panelists, Amanda Mattaliano and Joe Vitulli.)

By Alan Ruttenberg

Audience Question: Is there a software package that could help a large company be in compliance with business/sales tax license renewals/registrations?

Amanda’s Response: A lof of people try to manage their business license portfolio with a spreadsheet. My advice is that you shouldn’t even try. If you are a large company, then you need a more flexible solution.

Joe’s Response: I would suggest seeking a demo of Business Licenses’ BLMS application. It stands for Business License Management System. It’s a user friendly software package that can act as a one-stop-shop for all your licensing needs.

(Author’s Note: Business Licenses, LLC was pleased to host a webinar on April 30th, 2014 to discuss emerging trends in business license compliance. During the Q&A, the audience submitted many thought-provoking questions that our panelists didn’t have time to answer. We are going to periodically post those questions to this blog along with answers from the two panelists, Amanda Mattaliano and Joe Vitulli.)

By Alan Ruttenberg

Audience Question: Is there a product to centralize and eliminate the every-year-filings of business licenses?

Amanda’s Response: Very few states or local jurisdictions offer a multi-year license that would eliminate yearly renewals. Fortunately, we provide a way for companies to track their renewal filings so their licenses don’t lapse and they don’t forget about filing a renewal. We also offer services to track the renewals and we have a whole team of people who take care of the renewal filings for many companies with hundreds of licenses to maintain. The burden of license filings is not getting any easier for companies with stores or product sales nationwide.

Joe’s Response: Well, you can’t eliminate the every-year-filings but you can more effectively manage them. Business Licenses LLC provides many different services to assist with the management, outsourcing, and co-sourcing of licenses and filings.

(Author’s Note: Business Licenses, LLC was pleased to host a webinar on April 30th, 2014 to discuss emerging trends in business license compliance. During the Q&A, the audience submitted many thought-provoking questions that our panelists didn’t have time to answer. We are going to periodically post those questions to this blog along with answers from the two panelists, Amanda Mattaliano and Joe Vitulli.)

By Alan Ruttenberg

Audience Question: Is the compliance landscape changing for “out of town” business licensing requirements? Should companies be looking into every single locality where there is a contract for business license requirements?

Joe’s Response: Requirements for “out of towners” have been on the books for a long time and authorities love to go after them. While I don’t think it’s necessary to look in every jurisdiction where you have a customer, it is necessary to look anywhere you have employees who will perform a service.

Amanda’s Response: You might be able to cut corners in regions that typically don’t have local business license requirements like some states in the Northeast and Midwest. However, if you are going to bid on a contract and generate revenue in a locality, it’s a good idea to research the local licensing requirements. Contractors often can’t file for building permits until they are appropriately licensed and sometimes a customer may be asking to see that you are appropriately licensed to do work in the locality before they award the contract. They don’t want to see the project getting delayed or shut down temporarily because the company providing services doesn’t have a license when an inspector stops by or when work is starting to get underway.

(Author’s Note: Business Licenses, LLC was pleased to host a webinar on April 30th, 2014 to discuss emerging trends in business license compliance. During the Q&A, the audience submitted many thought-provoking questions that our panelists didn’t have time to answer. We are going to periodically post those questions to this blog along with answers from the two panelists, Amanda Mattaliano and Joe Vitulli.)

By Alan Ruttenberg