As long as you're deploying this software to the client, then you cannot store any kind of key inside it without risking compromise. Even if you use certificates, you cannot hide them from the client while still making them visible to your application. And if you embed the key in the assembly itself then someone will just pop it open using Reflector.
Assuming you don't care about outright cracking (i.e. patching the assembly's code to simply bypass the license checks), then there's one and only one correct way to implement this type of security and that is to mimic the way a PKI works, by using a remote server exclusively.
In a PKI, when a server needs to validate a client via a certificate, it checks that certificate against the certificate authority's CRL. If the CRL reports that the certificate is revoked then it refuses access. If the CRL cannot be contacted then the certificate is considered invalid.
If you want to implement this scenario then you need 3 logical services but not in your current configuration. What you need is a remote licensing server, a client, and an application server. The application server can, theoretically, reside on the client, but the key aspect of this app server is that it performs license checks against the remote licensing service and handles all of the important application logic. That way, "spoofing" the server becomes an almost impossible task because a casual cracker would have to reverse-engineer the entire application in the process.
This is significantly less safe than making the application server a remote server, and may not offer many advantages over simply embedding remote security checks in the client itself and scrapping the local app/licensing server completely. But if you are determined to take this 3-tier approach then the aforementioned architecture would be the way to go.
Again, this is assuming that you aren't worried about "direct" cracking. If you are, then you'll have to read up on techniques specific to that particular attack vector, and understand that none of them are foolproof; they can only slow an attacker down, never stop him completely.