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Is this illegal when starting a business??

Indianapolis, IN |

Is it illegal to start a business first and get the business license after you make some money to pay for it ?

Attorney Answers 3

Posted

Sorry, but the right to do business must preceed the doing of business. Normally the license if very inexpensive.

The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.

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Michael Charles Doland

Michael Charles Doland

Posted

Sorry, not "if" but "is".

Posted

In certain states it may be. Depending on the type of business the expenses are low. Banks or angels are available for loans or line of credits. Having a business plan is a sound move. I would recommend to hire an attorney. Good luck

This reply is offered for educational purpose only. You should seek the advice of an attorney. The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than an educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the undisclosed individual asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of New York. Responses are based solely on New York Law unless stated otherwise. Pursuant to Internal Revenue Service guidance, be advised that any federal tax advice contained in this written or electronic communication is not intended or written to be used and it cannot be used by any person or entity for the purpose of (i) avoiding any tax penalties that may be imposed by the Internal Revenue Service or any other U.S. Federal taxing authority or agency or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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Posted

The other posts are correct. You need to check on what permits or licenses are required for your area and obtain them before you can lawfully operate your business. You may be surprised at the license fees. Unless you are in a business targeted for policy reasons for higher fees, the fee should not be difficult to pay.
The key here is to make sure you need the license. Here in Fort Wayne, the city does not require a business license and in some places only certain types of businesses are required to be licensed. On the other hand, you may need a health permit if you are serving food or a liquor license if you are serving alcohol. If you contact the approprate office where these licenses are processed, the staff there will be able to tell you quickly whether or not you need a license and how much it will be.

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Michael Charles Doland

Michael Charles Doland

Posted

Dear Mr. Hanson. If you "agree" more or less with other attorney answers and hit "I agree" you get 2 points and the other attorney 5. With 30,000 points necessary to go from Avvo level 19 to level 20, I am sure y ou understand the reciprocal benefit. Welcome to Avvo.

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