I am paid on a “1099” basis with my employer (not as an employee)...Do I need a business license?

Yes. If you are not an employee, you are considered an independent contractor. Determining the relationship between you and your employer (or employee) can sometimes be confusing. However, put simply, if you are not paid as a W-2 employee, you are considered an independent contractor and are required to have a business license.

Fortunately, the State Department of Employment Development (EDD) has a very helpful booklet highlighting specific guidelines to follow in determining the correct relationship between you and your employer/employee. Contact EDD if you are unsure of the relationship. Once a determination has been made that your relationship is not that of an employee/employer, by default then, it is that of an independent contractor subject to a business license.

Show All Answers

1. What is a business license?
2. Who is required to have a license?
3. Why must I pay a tax to do business in the City?
4. How long is the license valid?
5. What if I close or sell the business?
6. I conduct business in several cities... Can I get just one license to do business in ALL of them?
7. Will the City notify me when it is time to renew my license?
8. What happens if I pay late?
9. What if I want to move the business?
10. Do I need a D.B.A. or Fictitious Business Name?
11. Must I apply in person or can I do it by mail?
12. Are there any restrictions on where I do business?
13. What about commercial business locations?
14. Do I need a license if I work out of my home?
15. Do State Licensed Contractors need a Business License too?
16. When do I need a Seller’s Permit?
17. Do Non-Profit Organizations need a business license?
18. I am paid on a “1099” basis with my employer (not as an employee)...Do I need a business license?
19. What about selling food?
20. I have this neat idea for a great sign!
21. Should I post the Business License?
22. I want to distribute handbills at homes to advertise my business.
23. I want to solicit a product and/or a service door-to-door. Do I need a permit?
24. Once I get the business license it means everything is OK - I don’t need anything else – right?
25. What else do I need to do?
26. How much does a business license cost?