I am a sole proprietor and I have a corporation, LLC or other Title 7 entity with a State Business License. Do I, as a sole proprietor, need to maintain a State Business License?
Yes, unless statutorily exempted, each sole proprietor must maintain a State Business License. A sole proprietor is not required to have more than one State Business License for any combination of activities conducted by that person which are reported to the Internal Revenue Service for any federal tax year on two (2) or more of the following forms; a Schedule C (Form 1040) Profit or Loss from Business Form, a Schedule E (Form 1040) Supplemental Income and Loss Form, or a Schedule F (Form 1040) Profit or Loss From Farming Form.
Note: A corporation, LLC or other entity filed with the Secretary of State that requires the filing of an Initial or Annual List of Officers are entities or “persons” separate from a sole proprietor and are required to maintain separate State Business Licenses.