Compliance01 augustus, 2025

My business license is expired. What do I do?

Door: Hans Howk

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

  1. 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.
  2. 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.
  3. 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.

Easily manage complex requirements

There are over 75,000 federal, state, and local jurisdictions.  As their compliance requirements become more complex, we’re the partner that can help you manage them all.

What steps do I need to take to reactivate my license?

The process of reactivating a business license varies by state and depends on your circumstances. Here are some steps you may need to take:

  • Reinstate your business: If your business has lost good standing with your domestic state or a foreign state and has been administratively dissolved, you may need to reinstate your business entity. Be sure to check with the Secretary of State to confirm that it was officially dissolved. If your business is still in good standing, the process of reinstating your entity registration will be easier.
  • Check state tax accounts: Contact your state department of revenue to confirm that any business tax accounts for which you are liable are still valid and in good standing. If you’ve missed any tax filings, you will be required to bring your account into good standing.
  • Check your EIN: Your EIN acts like a Social Security Number. It will forever be assigned to your business by the IRS. Even if your close your business account with the IRS, the EIN will still belong to the business entity. You should contact the IRS to see what steps you need to take regarding your EIN.
  • Find out your renewal options: If you hold an expired license, find out what your options are from the issuing board. In some cases, there may be a window in which a renewal can be submitted late. In others, you could be subject to a penalty fee. Some licensing boards might cancel a license as soon as it has expired and require a reinstatement application to bring the license back to active status.

Get on top of your business license compliance

Whether your business is large or small, getting your business licenses in order - and ensuring ongoing maintenance - is more important than ever. Regulations are constantly changing, and enforcement is on the rise. To lower the risk of falling out of compliance, create a business license compliance plan and develop a strategy to ensure your compliance portfolio offers long-term protection. Some organizations may also benefit from outsourcing business license management to a professional service provider.

CT Corporation can help

CT Corporation offers a business license verification service to ensure that all your business licenses are active and in good standing. If we find one that is not active, we can complete the license application and make sure your business is legally compliant.

For more information on CT Corporation services and how we can streamline your business licensing, please contact our business license team.

Hans Howk
Manager, Content Management
Hans provides internal support to key members of the Business Licensing Team, assisting with understanding industry nuances, searching and synthesizing statutes and regulations relating to business law.
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