Business licenses come in two flavors – (1) one is generally connected to a sales tax license and is required for collecting and remitting sales tax; and (2) the other enables a company to do business in certain jurisdictions – these could be construction permits, fire alarm permits, occupancy licenses, etc. States that tend to have a lot of business license requirements due to their local jurisdictions are Alabama, Alaska, Arizona, Colorado, Louisiana, Missouri and New Mexico. There are some states that also have a state level business license too.

The business license renewals pour in this time of year and they can be challenging to manage without the right systems and processes in place.

At TaxConnex, we have a workflow solution that enables us to scan each business license and assign attributes to each license including the following:

• Jurisdiction name and address and the ability to assign locations
• License Number
• License Fee
• Payment type
• Issued, expiration, and due dates (mainly annual licenses)
• Status – active/inactive, queued/processed

Having these attributes allows us to process the licenses in an organized manner from beginning to end. We also have the ability to review expiration dates, so we can be proactive and follow up with jurisdictions rather than waiting for a renewal notice to arrive. This is extremely important, because a lot of the business licenses have due dates and if you do not pay by the due date, you may be subject to a late fee that can be just as costly as your actual business license fee.

If you’re struggling keeping up with business licenses and would like more information on how to get this process under control, please contact TaxConnex.