Advice on a business license

[nblong]

I have an opportunity to do some business with a state university providing pens as gifts for donors. However, the development folks at the university require that I be in possession of a business license and be "official."

Sooooo, does anyone have any advice on starting a woodworking business at a very low level? By low level I mean it's just going to be me working out of my garage - no other "employees" - and I don't anticipate huge activity either in number of sales or in dollar amounts; I just want to be legal, pay my taxes, and not find myself on the wrong side of some government agency trying to, oh I don't know, protect children from all the lead they can be exposed to in wooden toys </snark>.

I'm not looking for detailed legal advice, just your own stories, thoughts on what NOT to do, or things you'd avoid if you were to do this over again, that kind if thing. Anything would be appreciated.

 

[Joe Scharle]

I don't know about a 'business license', but Privilege Licenses are required for just about every business/trade/profession operated in the state. See Sec. of Revenue. Most start at around $50.00.

 

[randwool]

You'll need a privilege license, plus the yearly filings from now on.
The state will want to know all about you, so they'll give you a Sales Tax ID number
Your insurance company may not cover your house in case of a WW fire (hobby work is OK)
Would you need liability insurance for the bozos who hurt themselves with your product???

There might be a few more, but I'm depressing myself.

 

[mshel]

If this is going to be a onesy twoesy thing, I would pass. My license cost me $100 a year and you have to have a tax id number if you are going to get the license. If they are so dead set on it, pad the bill to cover your costs. JMHO


Mike

 

[ScottM]

I have a friend who started a small venture. He had to open separate bank accounts.

 

[Rob]

Different counties have different laws, I would suggest looking for a group that helps small businesses start out in your area, the community college is a good place to start. They sometimes have free seminars on small business ventures.

 

[ss600r]

Where I am I first had to pay for zoning then for the business license. Cost for it was based on expected earnings. You have to have copies of tax filings to renew, but I know things vary from city to city as previously mentioned. Insurance had no effect on homeowners, but thats where I am. Of course now, my insurance was canceled because of doing work on ladders. This I do not understand, I guess Its because I'm still considered new and not big enough to pay out more. BTW my business is not woodworking, its pressure washing, gutter cleaning and dryer vent cleaning. Make sure your zoning is straight so you have no legal issues down the road. Do this first. You may want to check out Legal Zoom also. I didn't use them because of extra costs but it sure looks simple to go through them. Becoming a LLC is worth looking into if you go after things hot and heavy at some point. Its helps protect you from lawsuits so only the company assets can be gone after. Just food for thought.

 

[Magnoliaelec]

Just get a priv license in Charlotte. File for the Tax ID with state. Actually if you are selling to a school it should be non profit so you won't be collecting taxes so that may be a non issue. Before you get too much further talk to an accountant. You'll save yourself some mis steps.