Do I need a business license?

N

nba0203

New member
i don't even know if you would call this a business or not but i plan on detailing cars during the summer in my local town. I won't be doing anything complex such as engine degreasing only washing, waxing, and interior detailing. Since i am not planning on being big do i still need a license or am i good to go
 
Technically speaking, if you are providing services and getting paid, it is a business and therefore should be conducted as such. That said, you can legally just report your income on a personal 1040 for tax purposes.
 
BUUUUTTTT 98% percent of people will tell you not to worry. when you do your taxes dont mention it and, try and keep it all cash!!



nba0203 said:
i don't even know if you would call this a business or not but i plan on detailing cars during the summer in my local town. I won't be doing anything complex such as engine degreasing only washing, waxing, and interior detailing. Since i am not planning on being big do i still need a license or am i good to go
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Listen to Charlie, right is right and wrong is wrong.

Right is that once you are making more money than your expenses (to make it simple, not totally correct, but a guideline) you need to become legit.

Unless you wish to have anything you worked hard for, to be attached and taken away from you, be it the car, the house, your tools, etc, etc.

Just live by the rules that all business people live by, be honest, be ethical, be right.

Grumpy
 
Charlie and Ron are correct. Get a license it's not much money at all and easy to do and take the worry out of the equation. Most people do it on the side and do not file taxes, do cash and no business license, etc. It's a risk many are willing to take and most have done in the past I am sure but it really isn't hard to get a license and be "legit" and pay a little tax money. Good thing about owning a business is tax right offs and other benefits of being a business owner...

Next comes insurance but that is all up to you and the risks you want to take.

Good luck!
 
It depends on how you want to put yourself in a situation. If you file with your state it can have benefits. First, you're protecting yourself and your personal assets. Also, if you want to end up getting insurance you might have to be filed with your state. Some you don't have to though. It's a good idea and a way of protecting yourself.



And put it this way, it's a huge PLUS if you can relax your customer by saying you have a license versus them asking you and telling them you don't..



Best of luck to you and I hope you succeed.
 
A service vendors license is cheap enough to just go to the courthouse and get. (At least here that's how it works)



And one thing that hasn't been mentioned is that it kind of helps you mentally. You're an official business and you'll feel more like one. You'll feel more professional and since its just a "here and there" thing for you it doesn't hurt to be able to put "owner/operator of _____" on your resume in the future.
 
nba0203 - As above, I'll say the same thing. Get a license. Good luck with the business, do post your results if you take pictures. Which is a good habit, to not only show off your talent, but to protect yourself.
 
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