Business Licenses Q&A: Out-of-Towners

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