What does it depend on, you’re wondering? Well, you’re about to find out. Read on to learn whether or not you may need a business license.

Key takeaways:

• The requirements for obtaining a business license as an independent contractor can vary widely depending on your location and the type of work you do.
• It is important to do your research and ensure that you're operating legally as an independent contractor.
• Even if you're not required to obtain a business license, doing so can help establish your credibility, protect your personal assets, and set you up for success.

Do I need a business license as an independent contractor?

The rules and regulations regarding business licenses can vary widely depending on where you live and the type of work you do. For example, if you're a freelance writer working from home, you may not need a business license at all. But if you operate a food truck or other mobile business, you may need to obtain a license from the city or county where you operate.

So, how do you figure out whether you need a business license as an independent contractor?

The best way is to do your research. Start by looking up the laws and regulations in your specific location and industry. You can check with your local government offices, like the city or county clerk's office, or do an online search to find out what the requirements are.

You may also want to consult with a professional, like an attorney or accountant, to ensure that you're operating legally and taking advantage of any tax deductions or benefits that may be available to you. They can also help you understand any licensing or permit requirements that may be relevant to your specific situation.

One thing to keep in mind is that even if you're not required to obtain a business license, it may still be a good idea to do so. Having a business license can give you added credibility and help you establish yourself as a legitimate business. This can be especially important if you're looking to work with larger or more established companies, as they may be more likely to work with contractors who have a professional and credible image.

Another benefit of obtaining a business license is that it can help protect your personal assets. If you operate without a business license and something goes wrong, like a lawsuit or legal dispute, you could be held personally liable for any damages or costs. By obtaining a business license, you can help protect your personal assets and limit your liability in the event of any legal issues.

While the requirements for obtaining a business license as an independent contractor can vary widely depending on your location and the type of work you do, it's important to do your research and ensure that you're operating legally.

Even if you're not required to obtain a business license, doing so can help establish your credibility, protect your personal assets, and set you up for success as an independent contractor.

Want an easier way to do freelance work? Tell your clients to use Thera

If you’re a contractor, you know how it goes: clients pay you on different platforms, use different contracts, and don’t keep everything organized. That makes things a headache come tax season.

So consider asking your clients to hire you through Thera. We’re the contractor hiring & payroll platform that makes it easy for your clients to hire you, compliantly, no matter where you live. Invoices are auto-generated and your clients can run payroll in a click—no excuses for late payments or manual work getting in the way.

Want to learn more about how Thera can make your life a whole lot easier? Click here.