Get Licensed!
Purpose
Obtaining your business license is one of the most important steps in starting any business. It is a document that is issued by the Government of Guam to prove that you have permission to engage in business activity or practice a trade/profession. Before applying for your business license(s), it is recommended that you finalize your business plan so that it is easier for you to identify the required licenses, inspections, and clearances for your business.
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Please note that certain kinds of businesses require different clearances, equipment, and health regulations. Consult the Department of Revenue & Taxation for more information on what your business may require.
Types of Businesses
Choice of structure is based on management responsibilities, investors, ownership, and tax clearances. Please read through all types of businesses carefully and pick the one that is right for you. It is recommended to seek legal advise for certain types of organizations before beginning the application processes.
Sole Proprietorship/Partnership
A business of one or more owners without corporation or limited liability status. Owner(s) will represent their company legally and fully. This can be applied to part-time businesses, direct sellers, start-ups, contractors, and consultants.
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Advantages:
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Owners can file their individual form (IRS form 1040) and include business losses/profits, as individual and business income are considered the same. Self-employed tax implications will apply.
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Start-up costs are lower than that of other types of businesses, as it is uncommon to require legal consultation.
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No payroll start-up is required. Owners can open a bank account under their business name to separate business funds from personal funds.
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Disadvantages
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Owners are held personally liable for business debts and actions. All personal wealth and assets are linked to the business.
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This type of business does not require financial specific financial documents or maintaining company minutes, however, lack of accounting can be detrimental.
Corporation
This business organization is chartered by a state and gives the company separate legal standing from owners through the process of incorporation. Tax implications differ from sole proprietorship/partnership and come with their own set of advantages and disadvantages.
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By-laws and articles of incorporation are filed with the Department of Revenue and Taxation (fee of $50.00). This certification establishes the business as a legal entity in Guam and states the name of the corporation, purpose, and location.
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There is a possibility of significant tax consequences with this type of structure and it is recommended that applicants seek legal advise before applying.
C Corporation
This type of business elects to be taxed as a corporation and pay both federal and state income taxes on earnings. When shareholders earnings are distributed, income is also subject to personal income tax.
S Corporation
This corporation generally pays no corporate income tax on profits. Instead, shareholders pay income tax on their proportionate shares (distributive shares) of the corporation's profits. It should be noted that shareholders will pay tax whether or not the corporation pays out or not.
Limited Liability Company (LLC)
LLC's are authorized only in certain jurisdictions. It allows owners and managers to receive limited liability and (usually) tax benefits of the S Corporation without some of the restrictions it comes with. In Guam, two or more people may form an LLC by executing, acknowledging, and delivering articles of organization to the Department of Revenue and Taxation (similar articles to incorporation).
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These normally have a shorter lifespan than corporations and are easier to establish. They provide many benefits, but are more expensive to start.
Limited Liability Partnership (LLP)
This is often used by a professional association. Partner/investor's liability is limited to the amount they had invested in the company. To become and continue as a registered LLP in Guam, the partnership files an application with the Department of Revenue and Taxation that states the name of the partnership, address to the principal office, and number/names of partners.
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Please seek legal advise before applying for this establishment.
*With all forms of business, both the company's and owner's liability issues must be addressed with proper use of legal agreements, insurance and bonding. It is recommended to seek legal advise when creating regulations of company.
Types of Business Licenses
There are different types of licenses for different products or services. You may be required to obtain multiple licenses or clearances for your business. Different licenses may also require more or less clearances from the Government of Guam. Please consult with the Department of Revenue and Taxation Business License Branch to identify what licenses your business may require.
Wholesale License
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Required to sell items to licensed retailers
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Can include "only special orders"
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May conduct business from home, provided that there will be no storing of goods in your residence
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Department of Land Management will determine if activity is permitted in your property zone
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if activities are conducted at a different location (outside of your home), other agency clearances may be necessary
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Clearances required: Department of Land Management, Guam Fire Department, Department of Public Works, and Department of Public Health & Social Services (if food, consumable items, cosmetics, or toys are involved)
Retail License
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Required for sale of goods to end users
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For set locations (i.e., a retail shop)
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Clearances required: Department of Land Management, Guam Fire Department, and Department of Health & Social Services (if food, consumable items, cosmetics, or toys are involved)
Retail-Peddling License
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Required for sale of goods at authorized locations
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May use home address for license
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May include "special orders/drop ship of items/online"
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Clearances required: Department of Land Management, Department of Public Works, and Department of Public Health & Social Services (if food, consumable items, cosmetics, or toys are involved)
Hand Manufacturing License
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Required for manufacturing items to be sold to retailers at wholesale
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Must also obtain wholesale in order to obtain this license
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Clearances required: Department of Land Management, Guam Fire Department, Department of Public Works, and Department of Public Health & Social Services (if food, consumable items, cosmetics, or toys are involved)
Home Industry License
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Required for manufacturing items out of raw materials at home
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Cannot hire employees; only immediate family can assist
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Many sell to licensed retailers only
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Does not require obtaining a wholesale license
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Must obtain Retail-Peddling license to sell to end users
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No agency clearance required unless food, consumable items, cosmetics, or toys are involved (Department of Health & Social Services)
Service License
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May provide custodial services, grounds maintenance, consulting, repair, etc.
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Agency clearances are dependent on activity to be offered; consult with the Department of Revenue & Taxation for more information on what your business will require
Rental License
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Required for rental of condominium, house, or building (includes sub-leases)
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All rental of real property needs clearance from the Real Property Tax Division of the Department of Revenue & Taxation
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Other rentals that may be included: cars, tools, beach equipment, etc.
Clearance Directory
Below are the Government of Guam's agencies and what clearances they provide.
Some basic clearances can be obtained at the Department of Public Works One Stop Center.
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Please note that some types of clearances require inspections of facilities/equipment,
and inspections may have fees. Consult directly with corresponding government agencies for more information.
Revenue & Taxation
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Taxation Clearances
Public Works
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Occupancy Limitations
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House Rental Clearance
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Condominium Rental Clearance
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Retail Space Clearance
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Renovation Clearance
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Home-based Business Clearance
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New Buildings/Building Permits
Location: (One Stop Center) GR33+23Q, Tamuning, Guam
Phone: +1(671)646-3104 (Customer Service)
No Website Available
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*Open 8AM-5PM - Monday, Wednesday, Friday
Land Management
Planning Department
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Land Clearance
Location: International Trade Center (ITC) Building, 3rd floor
Phone: +1(671)649-5263
Department of Land Management Website
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*Must indicate legal description of property/home (lot and block numbers, building/house number, and street name)
Contractors License Board
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Contractors Approval
Location: 542 North Marine Drive Suite A., Tamuning, Guam
Phone: +1(671)649-2211/12/14
Department of Labor
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Worker's Compensation Notice
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Wage & Hour Notice
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Alien Labor Processing & Certification (ALPCD) H2B Clearance
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Bureau of Labor Statics Clearance (BLS)
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Occupational Safety & Health Agency (OSHA) Consultations
Location: 542 North Marine Drive Suite A., Tamuning, Guam
Phone: +1(671)300-4633/17
Guam Visitors Bureau
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Letter of Good Standing with Guam Visitors Bureau
Location: 401 Pale San Vitores Road, Tumon, Guam
Phone: +1(671)646-5278
Public Health
& Social Services
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Chemical Toilet Sanitary Permit
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Floor Planning
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Equipment Clearance
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Controlled Substances Registration
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Health Certificate for Laundry & Dry Cleaning
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Health Certificate for Institutional
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Health Certificate for Therapeutic Massage, Cosmetology, and Tattoo
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Health Certificate for Food Facility
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Health Certificate Renewal
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Sanitary Permit Certification (new and renewal)
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Temporary Workforce Housing Sanitary Permit
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Sanitary Permit for Temporary Food Service Establishment
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Contractor Clearance for COVID-19
Location: 520 West Santa Monica Avenue, Dededo
Phone: +1(671)300-9579
Department of Public Health & Social Services
Fire Department
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Fire Safety Clearance
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Clearing of Plans
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Operational Permits
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Occupancy Permit
Location: (One Stop Center) GR33+23Q, Tamuning, Guam
Phone: +1(671)646-8810
Board of Cosmetology
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Establishment License
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Special Japanese License
Location: 194 Hernan Cortez Avenue, Terlaje Professional Building, Suite 213, Hagåtña, Guam
Phone: +1(671)735-7405/7, 7411
Parks & Recreation
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Park Vendor Permit
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Recreational Water Use Management Plan Permit (RWUMP)
Location: No. 1 Paseo De Susana, Hagåtña, Guam
Phone: +1(671)475-6288
Judiciary of Guam
Records Office
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Police Court Clearance
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Traffic Clearance
Location: 542 North Marine Drive Suite A., Tamuning, Guam
Phone: +1(671)649-2211/12/14