Say you have registered a cloud technology business with the state you live in to obtain your Business Entity Number, and you have also obtained your EIN tax number. It seems that the next step is to obtain a Business License in the city you are living in. But I can't tell if that's actually necessary, since the cloud is inherently everywhere. For example:
If you are planning on starting a business located in the City of Foo or conducting business within the City's limits, you must first complete a business license application.
This makes sense if you have a storefront or building where customers come within the city. But I am not sure about if you have an internet business. Since internet businesses are potentially mobile, the idea of "doing business" is unclear. The actual doing of business, where a transaction occurs (i.e. a customer buys something) likely occurs in the cloud, in some remote Amazon server perhaps. You might do some administrative work at a coffee shop here or there, etc. So I'm wondering if you need to obtain a city business tax license at all, or if so, in which cities the license must be obtained. I don't imagine you would need a license in every city you would sell to, as that would be a lot of work. At the same time, you could be a traveling entrepreneur living in a motor home traveling all across the states. Wondering if in that case, too, you would need to register in each city.
But for the more simple case, of just working from coffee shops or coworking spaces within a single city (or within a few nearby cities), wondering what the consensus is on if you need to obtain a city business tax license, or what exactly you need to obtain other than the state entity ID.
For clarification, let's say the business does one or all of the following:
- Sells physical goods online.
- Sells cloud goods (like data storage space, or compute power).
- Has a subscription service for digital products in the cloud.
- Does research.
Business A does 1, 2, and 3. Business B does only 2 and 3. Business C does only 4. That is, it doesn't sell any products, just does internal research.
In all cases, there won't be any customers visiting any place physically.