Should you form an LLC first or get your business licence first? In your answer explain your reasoning please from a legal and tax perspective?

I imagine you need your business/LLC name before getting a business license. I don't have to get any kind of licenses so no experience, but if it was me I'd go ahead and get my LLC in place first.

Can't get a business license in a name that does not exist. Set up the LLC first. It takes 15min online to reserve the name, and then a trip to the courthouse within the next little bit to pay the fees and solidify it.

Technically you could get a business license in your name and have dba for your future company name, but I would get the LLC first.

Thanks toothdoc and hallb

This... add to the fact I did it backwards and it cost me an extra $200.00 when I wanted to change the name on my FFL to my LLC. I had to apply for an entirely new FFL

Agree with above. Create your legal entity first. That's who needs the license etc.

That is what I am trying to avoid gundoc. I am guessing all this has to be done by an attorney? What can I expect to pay?

An attorney or aTax Preparation person. Me and Travis looked at using an attorney, probably would have been $1k or so I guess, since they tend to be expensive by the hour. We ended up using Wanda Spillman Income Tax and Book keeping service in Fort Payne to set ours up. Total was $280. It was about a 15 min. Process. I didnt feel comfortable doing it myself online.

I'm actually standing in line at the Courthouse now dropping off my paperwork.

Take you a checkbook to the courthouse. They want written checks, and wont take cash or card, since the whole system is stuck in the stone age.

I'll be making a second trip..

Hard to say, but it will be worth every penny.

Down here in FL, I can go form an LLC online in about 20 minutes and like $225.

I have a buddy who is a lawyer set mine up. He didn't charge me anything to draw up the articles of incorpration.
I had to pay $150.00 (If I remember right) to the county to file it.
You also have to pay $100.00 minimum annually as a "Business Privilege Tax"

Check with an attorney and accountant before you decide on type of entity especially if you’re considering a single member LLC. It’s important to make sure you use the right business type before you start paying fees and such. There are advantages and disadvantages and my understanding is that single member LLCs are not a good idea. Better safe than sorry!

Any attorney that charges $1,000 to set up an LLC is ripping you off. I don't do many anymore. I used to do more of them. I've done several for people on here. It is not hard or time consuming. The filing fees with the state is $100. County fees can vary from county to county. I think the name reservation is $15-20 now.

There is a form on the Secretary of State website you can do it yourself.

This.

My brother in law CPA did mine for free but it's very easy to do online. Just don't forget to pay your business priviledge tax and file it like I did and had to pay a penalty and late fee.

I just did one myself about 2 months ago and am in the middle of doing another now. It's not hard to do. If you go to the state of AL website it lays it out pretty good. Get your name reserved, take a copy of that and either the LLC Operating Agreement or Domestic LLC Certificate of formation to County. They will send some of it to Montgomery and you will send the other. You also need an EIN (tax id) which takes 2 minutes to do online as well which is free after you reserve your business name.