Failing to renew your business license can lead to unnecessary fines among other penalties. Fortunately, it’s not too difficult to renew.

As you read through this guide, you will first learn the basics of what happens if a business license expires. Afterward, you will learn whether you need to renew your license in addition to renewing business permits.

What Happens if Your Business License Expires?

If your business license expired, then you will potentially face penalties or hefty fines. However, in some cases, government agencies may seize your business’ assets and shut them it if you fail to renew your business license.

Does Your State Require You To Renew Your License?

Each state has a different business licensing strategy. Because of this, some regulatory bodies may require you to renew your business license while others won’t. States may also have varying rules for different types of business licenses.

For example, if you’re a contractor in California, you must renew your active contractor’s license every 2 years. When renewing your license, you must pay a $450 fee or pay an additional delinquency fee if you fail to renew.

If a state does require you to renew, they will mail you a courtesy renewal notice at least 45 days before your license expires. This gives you ample time to renew your business license.

Steps To Renew a Business License

As mentioned earlier, not all states may require you to renew your business license. However, if it does, they will have varying requirements. Not all states share the same steps to renew a business license.

Most of the time, states or cities will either require you to call for a renewal form, which you can then send by mail. Or, you can renew your business license online for an extra fee.

Check With Your Local Government’s Rules

Your city or county governments may require you to renew your business permits and licenses. Therefore, you will want to inquire with them about what steps you need to take to renew your business license.

Check With Your State’s Regulatory Authorities

Depending on the type of business that you’re running, the state government will have its own regulatory authorities. For instance, if you are in Washington state, you will want to contact the Washington Department of Revenue to deal with your business license needs.

Usually, your state’s website will tell you exactly what steps you need to take. Let’s use Washington as an example. If you don’t want to renew online, their website says to take the following steps:

• Call their office for a renewal form
• Fill out the form
• Send it back to the Department of Revenue

Start Your Business License Renewal Now

If you notice that you are close to needing a business license renewal, don’t wait. Check with your local and state governments for their rules regarding business license and permit renewal.

Are you curious about learning more ways to expand your business? Explore our blog to learn more about entrepreneurship along with marketing and securing your product.