Hi, I live in California when I went to see my accountant I'm pretty sure he said I don't need a business license for my site, just a business name ( I sell premade sites with licenses ) Does anyone know if I have to obtain a license because I just recieved a letter in the mail about it. Thanks
Who sent the letter? I went and registered a license with the city and they said a lot of people don't know about the license but it is required by my city. I suppose it also depends on what city you live in. I live in Los Angeles.
The City Of Huntington Beach ( my city ) sent the letter, I just want to confirm this because my accountant said I probably don't need one for what I am doing.
You should talk to a Lawyer regarding this or some other CA who is a bit more qualified than yours..lol
Most states require you to get a license even if you are working from home and so on. I have licenses in New York and West Virginia and they both required me to get a business license after filling out a long booklet full of questions to find out exactly what I am going to be doing.
The rules vary by county/city as to what the specific requirements are. It generally depends on how much you make. If you run it from home without a permit, it would be considered a hobby. You must declare any income from a hobby (on you income taxes), but you cannot claim expenses. If you do get a permit, then it is a business. You have to do seperate taxes for it. If you show a loss in your business for more than two years, the IRS will most likely classify it as a hobby anyway. You probably do all this from home, yes? A permit will probably cost you less than $200. But there is usually a minimum tax amount. Check your county/city website for specifics. Check both, as the rules may be different.
I had a business license because I sold goods, but then when I moved outside the city limits, I did not need it anymore and I do not do business with people in the city, so I am free and clear, but it all depends on the city.
Check with your city and county The laws for this are local and can be very different for two cities right next to each other.
If your accountant used the word 'probably' you want to sack them, you got to be 'absolutely SURE' Probably just don't make the grade. Hope you get the right answer.
Here is the information for Huntington Beach: surfcity-hb.org/business/license_permit_codes/business_license.cfm
check your city, as stated earlier, two cities right next to each other have different laws, one you can sell without and one you have to have a license, it all depends. You will get the correct answer from business department in your city!
These Legal things are diferrent from state to state, from country to country...its good to consult with a local lawyer at your place..
Glad you sorted it out phillip, always better to be safe than sorry. I guess I was right when I said 'PROBABLY' doen't cut it.