I was talking to a guy at a networking thing about maybe starting an LLC for my woodworking side gig. He said before I even file, I need a business license. Is that true? I thought the LLC was the main thing. I'm in Ohio if that matters. I don't want to waste money on the wrong permits.
LLC
Someone told me i needed a business license when i asked about forming an llc
LLC and business license are two different things. LLC is your legal entity. License is often local or state. In Ohio you might need a vendor's license if you're selling tangible goods. Check with your county or city.
What he said isn't totally wrong but it's not a prerequisite. You can form the LLC first. But yeah, depending on what you do you'll likely need something. Woodworking might have zoning stuff too if you're working from home.
I ran into this when I started my lawn care LLC. The LLC filing was easy. The license part was confusing because nobody could tell me which one I needed. Ended up calling the county clerk and they pointed me to the right form. Start there.
Thanks. So the order is LLC first then license? Or can I do license first? I'm not even sure if I'm selling to people directly or just doing custom orders.
LLC first makes more sense. Get your EIN after that. Then look up Ohio vendor's license. Also check if your city requires a general business license. Some do, some don't.
Don't forget the difference between a license and a permit. Sometimes people use them interchangeably. For woodworking you might need a home occupation permit if you're in a residential zone. That's separate from any business license.
kaleidoscope_kid is right. I had to get a home occupation permit for my garage-based business. It was like $50 and a form. The license was through the state. Two different offices.
Also worth mentioning: the guy at the networking event might have been thinking of a different state or a different type of business. In some places a business license is required before you can even open a bank account. But in Ohio I don't think that's the case for most LLCs. Just don't take legal advice from random people at events.
So I should form the LLC, then check with the county and city about licenses and permits. That seems doable. I was worried I'd messed up the order.
One more thing. If you're doing custom orders and not carrying inventory, you might not need a vendor's license. But if you sell at craft shows or online, you probably do. The Ohio Department of Taxation website has a quiz to help figure it out.
I'd also say don't overthink it. Form the LLC, get your EIN, then call your local small business development center. They'll tell you exactly what you need for your situation. Free advice from people who actually know.
Agree with the SBDC suggestion. I wish I'd done that first instead of guessing. Would have saved me a couple weeks of confusion.