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    4. Transient Merchant Business Licensing
    Transient Merchant Business Licensing
    business license solutions

    Transient Merchant Business Licensing

    When a business ventures into a new market area, it must acquire a number of licenses to sell its products or services. State, county, and city governments may all require licenses. Even if a business plans to operate for only a single day, they might still need a license.
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    • Wherever and however you do business, CT Corporation acts as an extension of your business and helps you stay compliant. Over the last 130+ years, our relentless drive to get it right—the first time, every time—has made CT the trusted, global leader in legal compliance solutions.

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    Contact Us
    I was overjoyed to know that someone else could take care of state, county, town and city business license applications. Very professional company to work with.
    Office Manager, C & R Carpentry Inc.
    Very responsive and seems this will be a great resource to build a relationship with. Both specialists I spoke with were confident, informative and very professional.
    M Communications LLC
    Overview of transient merchant business licensing

    States determine whether a merchant should acquire a temporary or transient sales tax permit through their department of revenue or taxation. Some states require transient vendors/merchants to acquire a transient vendor/merchant license. These are issued either at the state or local level.

     

    Business applications usually include proof of foreign qualification, a surety bond, and a detailed business description. A list of goods to be sold and a list of workers who will work in the area must be listed in some applications.

     

    These licenses are often issued for a year, but occasionally for shorter periods of time to cover only temporary activities. Transient merchants must also be aware of all other local license requirement such as basic business licenses, privilege tax licenses, registration with local police departments, and any applicable zoning and special events permits.

    Customer researching business licensing options from CT Corporation
    Business license considerations
    State and local authorities issue specific business licenses and permits depending on your industry. In some cases, regulations require special education and unique credentials.

    Businesses functioning without the proper license are generally penalized based on the size of the operation and the gravity of the offense.
    FAQs
    • What types of licenses do I need to temporarily perform services in a new place?

      When a business goes into a new jurisdiction, there are a variety of licenses that may be required to perform services. Licenses may be required on the state, county or city levels. Even if the business will only be operating for one day, they may still be subject to licensure. Common types of licenses include transient vendor, itinerant merchant, temporary sales tax permit and basic business license. Generally, all licenses must be held prior to the start of operation in the new jurisdiction.

      Some states require a merchant to obtain a temporary or transient sales tax permit. Not all services are included in taxable sales, so the business should determine their sales tax liability prior to doing business in a new state. According to the New York Department of Taxation, if you expect to make taxable sales in New York State for no more than two consecutive sales tax quarters in any 12-month period, you may apply for a temporary Certificate of Authority. In Utah, All vendors participating in special events are required to obtain a Temporary Sales Tax License and Special Return from the Utah State Tax Commission.

      Other states require a transient vendor/merchant license. Business must look to the state definition of a transient vendor to ensure that this license applies to services. Sometimes they are issued by the state and sometimes they are issued on the county or city level. Common application requirements include proof of foreign qualification, surety bond, and detailed business descriptions. Some applications require an inventory of goods to be sold and complete listing of employees who will work in the jurisdiction. These licenses are often issued for one year, however sometimes they are issued for shorter periods of time to cover only limited temporary activities.

      Transient businesses must also be aware of all other local license requirement such as basic business licenses, privilege tax licenses, registration with local police departments, and any applicable zoning and special events permits.

      CT Corporation will help businesses determine the licenses that they need and obtain all of the licenses and registrations required, minimizing time-consuming and costly delays. For additional help please contact CT Corporation to consult a licensing specialist.

    • I am a mobile dental hygienist practicing in multiple locations several counties and cities. Do I have to obtain a business license in each city?

      Each locality is different when it comes to licensing mobile businesses like yours. Some localities may not require that you obtain a business license unless you have a permanent, physical location there, while others may require that you obtain a business license simply because you are providing services there. To determine which counties and cities would require you to obtain a Basic Business License, we can help you research the laws of which jurisdiction where you intend to provide services. Once we know which counties and cities require a license, we can also help you file for them.

      Please contact CT Corporation to consult a licensing specialist.

    • Do I need a license to sell my products at craft bazaars or vendor shows?

      Yes. You must have a General Vendor license if you plan to sell, lease, or offer to sell or lease goods or services in a public place in New York. If you will only be selling merchandise from a booth or stand at an authorized street fair (e.g., street fair, block party, or festival), you must obtain a temporary Street Fair Vendor permit to sell merchandise at an authorized street fair. Some exceptions do apply, please contact CT Corporation to consult a licensing specialist.

    • What licenses does a mobile food vendor need?

      Yes. You must have a General Vendor license if you plan to sell, lease, or offer to sell or lease goods or services in a public place in New York. If you will only be selling merchandise from a booth or stand at an authorized street fair (e.g., street fair, block party, or festival), you must obtain a temporary Street Fair Vendor permit to sell merchandise at an authorized street fair. Some exceptions do apply, please contact CT Corporation to consult a licensing specialist.

    • What is a vendor license?

      A vendor license is a commonly used term that can indicate several different types of licenses. A vendor is defined as a person or company offering something for sale. A vendor license may be a basic business license, a tax registration, or a vendor/contractor for a government agency.

      Basic Business License

      A vendor license may be a type of basic business license that a person or company needs to obtain before they can sell their goods or services within a certain jurisdiction. Usually there is an application process and a fee to be paid. The authority may request an inspection of the vendors premises or mobile vehicle, it applicable. This type of license may be issued by the state, but is more often issued by the county, city or town where the business plans to operate.

      Tax Registration

      Some types of tax registrations use the term “vendor” license or permit. For example in Ohio, any person or business making retail sales of tangible personal property or taxable services to register for the sales tax by obtaining a vendor’s license. Sometimes a privilege tax registration is required for a vendor. These types of registrations are generally issued through the state department of taxation or revenue, however they are also administered locally in some cases.

      Government Contracting Registration

      Another common meaning for a vendor license is the process through which a business must register with a government agency to become an approved provider of services or goods. This registration allows them to enter contracts with the agency. This is a very specialized process for each agency and spans all types of government from federal to municipal.

      CT Corporation will help you obtain any vendor licenses and registrations for your business, minimizing time-consuming and costly delays. If you are already licensed, we can manage license renewals and ongoing license compliance. For additional help please contact CT Corporation to consult a licensing specialist.

    • If I do business in an area but don’t have a physical location there, must I pay the license fee?

      Certain municipalities will only require a business license for businesses that are physically located within their borders. Others require a business license for all businesses performing services in the jurisdiction, regardless of whether or not the business is physically located there. If your business is required to obtain the business license, you will also need to pay the business license fee as part of that requirement.

      CT Corporation will research the business license fees and requirements for every jurisdiction in which you do business. Let the experts simplify the complexities of business license fees. Please contact CT Corporation to consult a licensing specialist.

    Need to consult with an expert? Contact us.
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