Renewing a business license is just as important as getting an initial license.
Business licenses can generally expire after one, two, and sometimes three years. Many state government departments don’t issue reminder notices about pending license expiration. As such, you must be diligent about properly renewing the license(s) or risk serious penalties.
Key takeaways
- Renew your expired business license promptly: It's crucial to renew your business license as soon as possible to avoid penalties or disruptions to your business operations.
- Check with local licensing authorities: Each state and jurisdiction may have different renewal procedures, late fees, and additional documentation requirements. It's important to check with your local licensing authority for specific details.
- Seek professional assistance if needed: If you encounter complex compliance requirements or have difficulty navigating the renewal process, consider seeking professional assistance or support services
When do I need to renew my business license?
Renewal periods can vary based on the type of license, state, and jurisdiction.
For example, a business located in Dover, Delaware, may have both state and city business license obligations. With a state-issued Delaware business license, there is the option to obtain a one-year or three-year license. The one-year license expires on December 31 of each year; the expiration date of the three-year license is December 31 of the third year. Meanwhile, a Dover city business license is active from August 1 to July 31 of the following year.
A business with locations in more than one state, or even multiple cities within a single state, will likely encounter varying business license deadlines.
How do I know if my business license is still valid?
You can check the status of your business license by phone or by visiting the state or local government website where the business is registered.
What are the penalties for operating with an expired business license?
Because government agencies are always looking for new revenue streams, business license violations are increasingly put under the microscope.
Penalties for operating with an expired license can include the following:
- Fines: Some states impose costly fines, interest, and even personal liens.
- Negative publicity: You may find that your business is publicly listed by the state as operating without a license.
- Business interruption: Agencies can require that expired license holders cease business until the license is reactivated.
Expired license holders can also attract media attention. In Georgia, a local TV station revealed a number of funeral homes that were operating with expired licenses. A local citizen was interviewed and stated that he would not trust a local business operating with an expired license. Besides bad press, these businesses faced a voluntary cease and desist order, a mandatory hearing before the Georgia licensing board, and multiple fines and fees.