Hey guys, love the forums here and they have been a huge asset to me as I have begun to become interested in real estate. Have a bit of a complicated question, so it prompted me to go ahead and sign up.
Anyways, I created an LLC here in GA with my dad and I as co-owners. The premise is such; he provides the down payments for smaller houses in the area, I find, purchase, maintain, and rent them out. I am now attempting to get a business license as one of the remaining legal requirements for the business. I mentioned my plans for the business and they confirmed that I will need a business license. HOWEVER…
Since there is more than one partner who owns the company, I do not qualify for a home based business. The only other option for getting the license is to have a commercial office, and I must provide them with a copy of a lease for the property. I am allowed to be a part of a “co-lease”, so long as I can provide them with a copy.
Given that renting a commercial office would be pretty counterproductive to what I am doing, especially since we would never need/use an office, do you have any suggestions on how to solve or get around this issue? Is there any important factors that I have missed here?
Official title would be the"Inspection & Code Enforcement Division" for my county. I was under the impression that in order to properly operate the LLC (i.e open a bank account, acquire loans, etc) I would need a business license? Or am I off the mark here?
in the US you don’t need a license to open a bank account or buy property. The LLC formation papers & IRS EIN should be sufficient. Some banks will want to see an operating agreement.
Ok, so for my purposes I can simply forego the license? Even though I plan on purchasing the property in the business name?
I already have the formation paperwork, certificate of good standing, and EIN # (still working on the operating agreement, but I would finish that prior to opening an account or getting a loan).
I don’t see that you are engaged in a commercial activity. You are not buying and selling merchandise which would require payment of sales and use taxes. You are not selling your services to others and charging a fee. You (probably) will not be paying anyone a salary which would bring payroll taxes, unemployment compensation, worker’s comp, and benefits into the picture.
Unless you are in some quirky taxing jurisdiction, why exactly do you need a business license to be a landlord for property you (or your LLC) own?