Business License?

Banned 12 years ago

Originally Posted by JaredWCavalieri

Do I absolutely need a business license for IM, or is just a Tax ID # enough?

It depends where you live.

Nobody can answer this when neither your profile nor your post even mentions your country. These matters vary enormously from country to country. (And inside the US, for example, business licensing regulations can vary not only from state to state but even sometimes from city to city.)

(And even with that information, you may need a qualified accountant or lawyer to answer, anyway?)

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JaredWCavalieri 12 years ago

My apologies, updating profile as we speak. But California is where i reside.
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CDarklock 12 years ago

Originally Posted by Alexa Smith

It depends where you live.

This FTW.

I need to have three different business licences where I live. Costs me about $60 a year. Two of them only matter when my revenue exceeds a certain amount, but because I am required by law to get them within 30 days of that event, and there are substantial penalties for getting them late - I find it much less worrisome if I just get them now, so when my revenue hits the magic line I don't have to bother with it.

Most places have a revenue floor below which you don't need a business licence, but some of them have a really little one like $300 a year. Check your state department of revenue's web site. (Don't call them. If you call them to ask if you need a licence, the answer is always "yes.")
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JaredWCavalieri

12 years ago

Thank you both very much for your input. I guess i'd better get on it.

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Rod Cortez

12 years ago

Originally Posted by JaredWCavalieri

Ok so i've been in IM for a short while now, and im starting to generate some income. I know this is a question i should've asked from the very beginning, but it didn't seem to worry me until now. Do I absolutely need a business license for IM, or is just a Tax ID # enough?

Alexa and Caliban hit the nail on the head. It depends where you live. Since you live in California you'll definitely want to contact city hall to find out what kind of requirements they have for the city you live in.

Also depending on what kind of business you're running you might need additional licenses, permits, etc.

I recently moved and before I did I contacted the city hall where I was moving to because I know different cities have different rules and requirements, but generally speaking, they all require you to have a business license if you plan on earning a certain amount of dollars in a given year. Some cities also have a thing about running a business out of your home, so you'll definitely want to ask about that as well.

RoD

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JaredWCavalieri

12 years ago

Thank you as well Rod. Just need to go to City Hall now. Dang this 3 day weekend!

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jacktackett

12 years ago

Caliban et al have given excellent advice - I would also recommend you find an accountant/CPA or a lawyer (a bit more expensive granted) to help you out. I've found my CPA to be the best money I've invested in my business(es). Its hard enough for the 'experts' to keep up with all the rules, less lone a sole business person. E.G., here in North Carolina I have to keep track of 100 different tax rates (1 per county) PLUS there's a statewide digital download tax, plus each county AND city (I live in the city limits) have their own rules for different businesses - yep you pay different license and privilege fees depending on where you live in NC but ALSO by what you do.
and NC is considered a business friendly state!!!! I hear California is not so friendly ;-)
Best of luck,
--Jack

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Rod Cortez

12 years ago

^^^ Agreed. California sucks when it comes to paying business taxes (taxes in general period) so finding a CPA to help with your tax planning is crucial. You want to take as many lawful deductions that you possibly can.

RoD

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"Your personal philosophy is the greatest determining factor in how your life works out."

- Jim Rohn

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JaredWCavalieri

12 years ago

Wow. I guess I really have to look at it as an ivestment. I'm hoping it won't be as troublesome as you predict. California tax laws i mean

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Randall Magwood

12 years ago

Where i live i have to get a business license and a zoning permit. You should definitely get a business license if you want to do this thing the right way.