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What is considered gross receipts for a business license?

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What is considered gross receipts for a business license?

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All new businesses or actively operating businesses are required by law to have a business license. The process of obtaining a business license includes payment of a business license tax. The exact amount of business license tax is calculated from the amount of annual gross receipts of the business per year.DefinitionAccording to the Internal Service Revenue (IRS), gross receipts are defined as the total amount received by the organization (the gross income of the business) from any and all sources during its annual (per year) accounting period, without deducting any costs and/or expenses.ProcessThe gross receipts are used to determine a business’s annual business license tax. This tax is collected annually, based on the fiscal year schedule of the city where the business is located.Tax RateThe business license tax rate is a certain percentage of the annual gross receipts. This percentage associated with the tax rate varies depending on the year of filing and the location of the busine

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