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Fines for not having license before starting ebiz?

by capedape1
13 replies
I've been doing business for about 5 months w/o registering in California (half the time I took off out of the country). It's an info ecommerce business, does anyone know what the monthly fine is in California for not having a business license? Please discuss
#ebiz #fines #license #starting
  • Profile picture of the author ADVERTHEORY
    yeah man, skip town and hit the border quick.

    what type of "business" is it?

    start your search at the government website to find out what your next step should be.
    http://www.sos.ca.gov/business/be/faqs.htm
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    • Profile picture of the author capedape1
      Originally Posted by ADVERTHEORY View Post

      yeah man, skip town and hit the border quick.

      what type of "business" is it?

      start your search at the government website to find out what your next step should be.
      Frequently Asked Questions - Business Entities - California Secretary of State
      heheh, I've gone to the mattresses and am wearing ballistic nylon head toe so no worries. I already know I'm going sole proprietorship not LLC so what I have now is everything but the monthly fine amount. It started off as an information product to do with travel, but now it involves import/export from the country my fiance lives in as well. So anyone know a monthly ball park figure? Cheers
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      • Profile picture of the author Mike Hill
        Originally Posted by capedape1 View Post

        heheh, I've gone to the mattresses and am wearing ballistic nylon head toe so no worries. I already know I'm going sole proprietorship not LLC so what I have now is everything but the monthly fine amount. It started off as an information product to do with travel, but now it involves import/export from the country my fiance lives in as well. So anyone know a monthly ball park figure? Cheers

        Good Lord, just date your business as starting the day you fill out the paperwork. All the prior business dealings where research to see if the business was viable IMO.
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        • Profile picture of the author capedape1
          Originally Posted by Mike Hill View Post

          Good Lord, just date your business as starting the day you fill out the paperwork. All the prior business dealings where research to see if the business was viable IMO.
          Hey man, yeah I could treat it as research (mainly was).

          In order to do taxes as a sole proprietor for 2013 I'll have to put on the forms that I was in business during the previous year, so it's ok for that business to have been research during that time? I need to talk to an accountant, but please anyone, chime in if you know anything about above. Thanks
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  • Profile picture of the author ADVERTHEORY
    eight hundred dollars
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  • Profile picture of the author capedape1
    Well good lord is right...a month?
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  • Profile picture of the author XponentSYS
    As a sole prop, the state has nothing to do with it. Business licenses have to do with the county. So, what county ate you in? That's where you go to get a business license.

    Forget about the past. It is what it is and unless you did hundreds of thousands in sales, they don't have time to sweat you.

    That being said though, if you consider yourself a business personand not merely a joker playing business do it right.

    File for a corporation, get an EIN and a seperste business checking account for your business.

    Do things right but don't sweat what has already happened.
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  • Profile picture of the author Green Moon
    If you are operating an online business as a sole proprietor, it is highly unlikely that your local government requires a business license, though it is not unheard of.

    It is even more unlikely that California requires you to obtain a business license for your online business, but again it is not impossible. California, like most states, does regulate a variety of businesses and professions. For example, if your ecommerce business is the online sale of insurance or online mortgage banking, those are regulated in the same way that that they would be offline.

    Even if no "business license" is required by the state of California, you may need to register your ecommerce business with the state if you are engaging in sales that require you to collect sales tax.

    In short, talk to an accountant and lawyer to discuss your specific situation and don't rely on general opinions on this or any other forum.
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    • Profile picture of the author jwmann2
      Submit your W-9 with your social security number to the companies that pay for your services pertaining to your online business. If you earn more than $600 from them in a calendar year, you will have to file come tax season. You will be a sole proprietor until you hire someone else as an employee for your online business. When you hire someone else on, you can form an LLC on websites like LegalZoom for less than $200. LLC protects you from liability if something bad with your business were to go down but you don't need to do that just yet.
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  • Profile picture of the author Book In Essence
    I've been doing it for a while now without a license and nobody has come to kick in my door. I think you'll be perfectly fine.
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  • Profile picture of the author BradVert2013
    Talk to a lawyer and accountant. They're the only ones qualified to truly help you with this and give you sound advice to stay out of trouble. Everything here will mostl likely be mere speculation.
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  • Profile picture of the author Tsnyder
    Dude... seriously... a 5 minute call to your attorney would
    have yielded the answer by now.
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