What is the dfifference between a business license and forming a llc or inc ?

[s2kinteg916]

What is the dfifference between a business license and forming a llc or inc ?

[Sagewing]

See Nolo Press for great resources about this. They are completely different.

[Chris]

An LLC or S-Corp (the most typicaly "Inc" for us publisher types) creates a separate legal entity from yourself. There are tax & legal reasons for doing this.

A "business license" or whatever could vary by county or city, let alone state. You don't necessarily even need such a thing depending on where you live.

[s2kinteg916]

Im trying to get ready and organize myself to work with a couple different companies that dropship products

Would i need to get both ? I read chris's article whichi s great but im unsure where to go to get the process going

[Sagewing]

It's hard for anyone to provide a quickie answer for a complex question. I recommend that you go to the bookstore and learn about corps/llc's, then make a decision based on understanding the concepts.

You might also want to consult with CPA.

[KLB]

As Chris pointed out, business licenses are totally different from partnerships/LLCs/incorporation. A business license is sometimes required by local municipalities to conduct business. Not all municipalities require business licenses. Partnerships, LLCs and incorporation are ways a business is organized.

You should check with your local city government to see if they require business licenses. Whether you should organize as a sole propritorship, a partnership, an LLC or a corporation could best be answered by consulting your tax accountant and maybe your lawyer. I personally organize my businesses as corporations and file as S-Corps with the IRS for tax purposes.

[demosfen]

Im trying to get ready and organize myself to work with a couple different companies that dropship products

I am assuming you're in the US. They USUALLY ask for your retail certificate, also known as tax ID. The purpose is to verify that you're reseller, not consumer. That's all they'll need, but to get a retail certificate you have to have a business. You don't have to have LLC or corp. , sole proprietorship will do. They don't care. In my state, sole proprietorship is free, but if you want a fictious name (DBA), it's $100+.
Retail certificate you get from the county clerk, and sole proprietorship papers from the state (print out form from their website and mail it, that's all).