Do business licenses expire?
Many business licenses must be renewed annually (every year) or biannually (every two years). However, licenses can have varying expiration dates, depending on the license category and the jurisdiction. Even within one state, there can be different rules for business license renewal for different types of businesses.
Is there a late fee for a business license renewal that is late?
Jurisdictions and agencies often issue a penalty for an expired business license — with penalties increasing over time. In some cases, a business license is considered expired even if the renewal filing is one day late. Frequently in these instances, the business may be required to halt operations.
What if I did not receive a notification?
As a business owner, it is your responsibility to pay the license renewal fee by the due date, even if you did not receive a renewal notice.
How long can you operate a business without a license?
Obtaining necessary licenses and permits is a legal requirement for a business. A business that is discovered to be operating without the required licenses and permits may be forced to temporarily halt operations or shut down entirely. In certain cases, a business owner could be arrested and charged with operating without a license.
What if I am closing or have already closed my business?
If you close your business or move it out of a jurisdiction, you need to cancel all relevant registrations, permits, and licenses. Some authorities impose additional business license taxes, assessments, fees, and other penalties based on the expiration date of the current license and the date that you cease operating.
How do I renew my business license if it has expired?
If your business license has expired, contact the issuing board to determine your options. In some cases, there may be a window in which a renewal can be submitted late. In others, you could be subject to a penalty fee. Some licensing boards might cancel a license as soon as it has expired and require a reinstatement application to bring the license back to active status.
To learn more read: My business license is expired. What should I do?