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Is having a business license necessary?

You have just launched your own company and are completely enthralled with the thrill and excitement of running your own organization. You have relentless energy and a clear vision of where you wish to take your company in the next five years. However, as you contemplate your growth in Minnesota, you begin to question the necessity of a business license. 

Contrary to what some may believe, licensing your company is critical to sustained growth and a requirement to operate your business legally. Should you delay the process of getting a license, ignore the requirement altogether or allow your license to lapse, you could face some detrimental consequences. According to Chron, these consequences include the following:

  • Financial strain: If the authorities find out that your business is operating without the correct licensure, they could issue you penalties and fines that could leave you scrambling for adequate financial help. 
  • Suspension of operation: Another consequence could be that you are forced to shutter your company until further notice. In some cases, once you have corrected the problem, you may be able to resume operations. In serious cases however, you may be forbidden from continuing business operations of any kind. 
  • Damage to reputation: If you have worked hard to establish your brand and a solid reputation, your image could be heavily tarnished by your decision to operate without the correct legal licensing. 

If people find out that you are not licensed, they could sue your company and you may be left fighting an uphill legal battle. The information in this article is intended for educational purposes only and should not be taken as legal advice. 

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Dunlap & Seeger, P.A.
30 3rd Street SE
Rochester, MN 55904

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