Do I need a license to do this?

[cpals]

I have kind of a side "business" doing odd-job computer help and repairs (like probably some of you do), and I was wondering about the legality of it. I do jobs for a couple of businesses and they pay me via check and I give them a receipt for what I do. I've even made up business cards to give out.

Now what I'm wondering is if I need a business license or anything else to be doing this? Can I just report this on my personal income as an extra inflow of money? I just don't want the IRS to come a knockin'.

Also, I live in Florida.

 

[jpeyton]

I know a lot of people who do off-the-record work of all kinds. Electricians, plumbers, carpenters...

They do the work for considerably less too, because they only accept two forms of payment: cash or money orders.

In short, don't worry about the IRS unless you start making a considerable amount of money from your side job.

 

[Tetsuo]

Naw, you don't need a license, unless your making huge amounts of cash from it

 

[AlienCraft]

Nope, just don't try to call yourself a fictious name. That'll be a hard check to cash without a Fictious Name Statement on file with the bank.
If you start making say over 4/5 K / year, you might want to think about being legal. If someone's panties get knotted up over a job you do, it may remove any apperance of scamming on your part.
Track how much you earn in order to verify if the IRS gets interested.

 

[cpals]

Bump for the morning crew.

 

[spaceman]

keep it under the table.
the govt. already gets enough of our money.

 

[cpals]

Originally posted by: ncircle
keep it under the table.
the govt. already gets enough of our money.

I would like to keep this legal, which is why I posted this thread...

 

I would like to keep this legal, which is why I posted this thread...

Then you are going to require a bussiness license and a proper name for it, plus you have to fill out your states tax form (If you have one) and a federal tax form.

 

[guyver01]

Originally posted by: cpals
I do jobs for a couple of businesses and they pay me via check and I give them a receipt for what I do. I've even made up business cards to give out.

if you're doing that, and not telling them you're doing it as side work with NO warranty... then if you mess up they can sue you and go after your personal property.

cover your a$$ and incorporate, at least LLC.

 

[amdskip]

Cash is the way to go!

 

[ScottMac]

The places you are doing work for may be keeping track and reporting those payments. You might find yourself with some 1099 tax forms at the end of the year. You might want to save a few bucks for around Tax Time.

FWIW

Scott

 

[NogginBoink]

Whether or not you need a "business license" varies from state to state. I'm in Texas and have never heard of such a thing.

If you have a company name you'll want a "ficticious name" or "DBA" (doing business as) on file. Call your county.

You'll have to pay self employment taxes. Check the IRS website.

 

[XZeroII]

You need a license to do anything in this country. However, what the gov't doesn't know about...

 

[Workin']

I have my own computer consulting business and I didn't need to get a license of any kind to get started. The situation varies from state to state regarding what paperwork is necessary. If you want to continue to work as a sole proprietor then you need to look at your state's regulations for doing so. I would recommend forming a Limited Liability Coproration (LLC) for better protection of your assests. In most states the paperwork and record-keeping burden for an LLC is pretty light.

Whatever you do, report your income on your tax returns. This will involve filling out Schedule C with your taxes. Go to the IRS website, there is tons of info there.

Don't just keep track of your income "just in case the IRS asks". By that time you are already in penalty territory! The IRS doesn't care how you earned the money, legally or not. They just want their share.

There's a ton of info available on the web. Start at the IRS website, then look at the Small Business Administrations site, and then google for your own state's rules.

It's a lot easier to be legal from the start than it is to try and get legal after you've been in business for a while. If you are making only a small amout of money, then it is pretty easy to offset it legally with business expenses. Last year after expenses my company lost a little money, which offset income I earned from other sources so I got MORE money back on my taxes than if I had taken the computer consulting money "under the table".

Good luck!

 

[cpals]

Thanks.