Do Freelancers Need a Business License?

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Do Freelancers Need a Business License?

One question people keep asking us at skillhut.xyz is, Do Freelancers Need a Business License? Come to think of it, you have come across several freelancers, if you haven’t, you can check out skillhut.xyz freelance marketplace, there are lots of freelancers there. So how many of them do you think have a freelance business license? Never asked? You should have. 

If your colleagues do have a business license, is it a must you get one? Is it that important or just some random job security thought? 

Let me tell you a secret, I didn’t have a business business license up until last year. However, the moment I got a business license, the authority and legal standing of my business heightened. 

Similarly, the fact that you are paying taxes from your freelance income means that you should treat your business like a legal turn on.

Anyways, lets run through how to get a business license for your freelance business.

What is a Business License? 

A business license is a legal tender that contains how a business should operate in a particular geographical area. This license is a tender that you are taking part in a legal  business and you are being monitored by the law. 

Business owners with business licenses are given a higher preference when it comes to government grants, loans, bonuses and so on. 

Are freelancers part of those business owners? Is there a time when freelancers would need to demand for grants or bonuses? 

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Do Freelancers Need a Business License? 

Freelancers deliver their services digitally, on freelance platforms or any other suitable platforms. This platforms already  have their own Business license. 

So, on a conventional  look, you should not be bothered about the fact that you do not have a business license. 

However, there are times where freelancers have to work contract based, or physically meet up and a license might be handy to enhance the integrity of your service. 

In another case, you might need to register as a legal agency or employed member of your country. Therefore, you might need a license to ascertain your service as a freelancer. 

Nevertheless, your service as a freelancer is digital and you can choose to either get a business license or not. 

Do Freelancers In The UK Need A Business License?

Just as explained earlier, a business license is not an important legal procedure of a freelance business. However, if your service as a freelancer is physical, such as Hired drivers, Tattoo artists etc, you have to register your business. 

PS: if you run a data analysis agency, you might need to register as a real business with a business license. This is because you are processing people’s lifestyles. 

Do Freelancers In The US Need A Business License?

If your business involves delivering digital service, you don’t need a business license in the US. However, if the structure of your business is around physical service, just like the examples signed above you might need a business license. 

By the way, you might need a business license in the US for the sake of IRS and income validation. Though, most times, this is not necessary. 

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How to Get a Freelance Business License

The requirement for getting a business licence for freelance is different depending on your country. 

So, the first thing you should do is to go to Google and search for the business license requirement of your state. 

For example, you can search for a business license in California, you should be able to learn how the process will go from here. 

You can also try online service and legal business such as businesslicenses.com for detailed information about how getting a business requirement works in your country. 

Nevertheless, you might need to pay a fee to get your license. It is less than $250. 

Do you Need an Insurance for a Freelance Business 

Insurance is not a necessity for freelance offering digital services, however, if your job requires a physical supply, then you might need a jobnsurance. 

However, freelancers offering digital skills should at least be getting an insurance for other part of their life including: 

  • Homeowners insurance which should cover every home equipment and business activity
  • Similarly, General insurance that will cover their medical expenses, stocks, crypto and other parts of their income and financial life.  

Conclusion

Freelancers that offer graphics design, writing, editing, video editing and other services do not need a business license. Except in legal situations that might concern other parts of their income life. 

However, if your job is around delivering driving, renting, drawing, or any other service that would require your physical presence, then get your business license. It would come in handy one day.  

israel

Author Since: November 16, 2023

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