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Friday, September 19, 2014

Question

I have heard it only costs approximately $45 to get a business license to do commercial office cleaning. I have also heard it is not needed in certain states, but it also helps to prevent auditing from the IRS. Can you shed some light on the importance of obtaining a business license for office cleaning? Is it needed? Also, what are the costs as I have heard from $45 to $300 plus. Where should someone go specifically if they want to obtain a license?


Answer

Answer #1:
As an entrepreneur, you should have a business license regardless of the cost. You certainly need a business license to open a business checking/banking account, and it legitimizes you and your business in the eyes of your customers, tax board (local, state, and federal), and other regulatory agencies. In fact, you often have to provide a copy of your license when bidding on jobs, so I hope this information encourages you to acquire a business license.

Perry S. Shimanoff, ICAN Consultant

Answer #2:
Let’s make this as simple as possible. Perry, who lives in California, has business license requirements by the score. You, however, in Maryland may have none.
Start with a search online under “Maryland business license” and go to the state posted information to search for janitorial. I found none, but look more carefully.
Next, call your county clerk's office to find out what they may require. The local folks may want you to register a fictitious business name if you are using one.
What works best to prevent IRS audits is on-time and honest filing of the required reports and prompt payment of what is due.

Lynn E. Krafft, ICAN/ATEX Editor
lekrafft@juno.com