Posted by Matham on 4/1/11 1:30pm
Msg #378318

Business Licenses

My initial notary class did not cover business licenses, but my loan signing class did but mentioned it as a recommendation - that it was not required.

Well, I found out, at least for the city I live in, that yeah, it is required in order to conduct business. And it is a whopping $80. Annual membership with the Chamber of Commerce is three times more than that.

I'm going to get it, but I guess my query is - how many of you chose to get a business license (or chose not to)? And, as well, if I live in a big metro area, and I want to cover the entire area, that means I am going to have to get business licenses for all those cities, right? That's a lot of money and sadly, I am not made of disposable income. :/

Reply by Linda_H/FL on 4/1/11 1:38pm
Msg #378321

In my area I do not need a city license as I don't conduct business within the city limits (we're out in the boonies outside the "city limits" limits)...I doo need county license to run my business in my county ($22/year) and, as a result, I am subject to the zoning laws - for example, I cannot conduct a signing in my house or home office - I must stay strictly mobile. Which is fine - I pay no personal property tax on my business and my notary stamp and journal are automatically exempt from our county taxes.

Reply by Matham on 4/1/11 1:39pm
Msg #378322

That's interesting because they said I do not need a license for the unincorporated areas of the county. California - go fig...

Reply by Linda_H/FL on 4/1/11 1:46pm
Msg #378325

I'm not unincorporated as far as the county is concerned - only as far as the city is concerned

City...make that village...we have a population of about 450 last count...if I was within City limits I'd need a county business license and a town business license...I got lucky..

And don't forget...state by state, the requirements are going to vary.

Reply by John Tennant on 4/1/11 2:07pm
Msg #378327

I live in the city of San Diego and "business tax" fee is required. Yep, not a license, a fee. Cost is based on # of employees. As with Linda, no clients allowed to come to my home. Fee is required to be renewed annually. There is no fee for working in the county areas but many of the other cities also require "fees".
The cities provide absolutely nothing to the small business owner, working out of their home. IMHO, just another government "ripoff".

Reply by DD/OR on 4/1/11 2:08pm
Msg #378328

You would only need one license. It would allow you to work anywhere in the county where you live. But I just wonder if you need a license at all if you do not have people coming to your residence. I think maybe the license would apply where customers are coming to your residence, like a store. Maybe you should ask.

Reply by Lee/AR on 4/1/11 2:15pm
Msg #378330

At the risk of getting flamed... take a page from the government's old playbook: Don't ask/don't tell.

Reply by James Dawson on 4/1/11 2:28pm
Msg #378336

F I R E ...!!

No, April fool's hehe but seriously, don't forget to check on your zoning location, some are strictly residential period.

Reply by CopperheadVA on 4/1/11 3:10pm
Msg #378347

They will eventually find out. When you file your Schedule C for taxes, that info is given to the county where you live. I found that out when my county sent me a letter saying I should have been paying county business taxes. No business license is required here in my county, but they tax you on - get this - the equipment that you use in your business. So everything I claimed on my Schedule C as equipment expenses, I owe a tax on that equipment to my county every year.

My two printers, my fax machine, my laptop, etc. Thank heavens I did not claim my car as a business expense - I take a mileage deduction but it's less than 50% business use. It's ridiculous! Theoretically, they could tax me on the value of my dining room table because I use it to prep my packages!

Reply by James Dawson on 4/1/11 4:17pm
Msg #378354

Everybody shouls read the previous post! n/m

Reply by Susan Fischer on 4/1/11 9:25pm
Msg #378378

Are ~all~ Notaries Public required to get business licenses/

charged a tax on Sched C equipment?

I'm just wondering.

Reply by CopperheadVA on 4/1/11 9:48pm
Msg #378379

Re: Are ~all~ Notaries Public required to get business licenses/

In my county, it doesn't matter if you are a notary public or a Pampered Chef consultant or a mechanic or whatever. If you run a business, you must pay the equipment use tax to the county.

Reply by Linda_H/FL on 4/1/11 2:16pm
Msg #378331

Re: Business Licenses....I wonder...

"if I live in a big metro area, and I want to cover the entire area, that means I am going to have to get business licenses for all those cities, right?"

I wonder just how many notaries and/or signing agents with their businesses set up have actually done this...this seems rather cumbersome...and expensive!!

Reply by garland/CA on 4/1/11 2:19pm
Msg #378332

Re: Business Licenses....I wonder...

I have never filed a business license - didn't even know I might need to. I guess I'll have to look into it now. I live in an unincorporated area, but as mobile notaries we conduct business in many cities..
this is one more expense we have that makes the lowball fees unacceptable.

Reply by Linda_H/FL on 4/1/11 2:20pm
Msg #378333

Re: Business Licenses....if it's like here where I am

it may be based upon where your 'PRINCIPAL PLACE OF BUSINESS' is ...which would be your home...

Reply by Linda_H/FL on 4/1/11 2:22pm
Msg #378334

Re: Business Licenses....if it's like here where I am

Hit something wrong...sorry

Although you do business in many locations, your principal place of business is your home (or office)....I can't imagine having to get a business license in every city where you do a signing..jeez...you think plumbers and electricians pay $80 or more per CITY to work there? I don't think so!!

I'd check real deep into this...having to get a business license for each and every city/county you do notarizations in just doesn't pass the sniff test IMHO.

Reply by Matham on 4/1/11 2:53pm
Msg #378342

Re: Business Licenses....if it's like here where I am

The clerk at City Hall basically said that the license was for that City alone and that if I wanted to conduct business in other cities, I would have to get licenses for those cities as well.

Reply by JanetK_CA on 4/1/11 3:22pm
Msg #378349

Re: Business Licenses....if it's like here where I am

That person is probably going to give you the stock answer that applies to the average business. I would guess that for most businesses, "conduct[ing] business" in another city would mean opening another office or store. It's up to each of us to interpret as we see appropriate for our own area and business practices. Of course, we are also the ones who will live with any consequences of our interpretation.

It might be helpful if you stated where you are. And I would take advice from anyone out of state with a grain of salt. This is one subject that's going to vary GREATLY from place to place, as we've seen in all the different posts.

Reply by John Tennant on 4/1/11 4:30pm
Msg #378355

Re: Business Licenses....if it's like here where I am

Actually, the City of San Diego "fees" evryone they can. Drive in from another city, put windows in a persons house, get caught, pay the "fee" and maybe a fine. There are so many permit requirements in this city, with inspectors prowling around, that it is easy to find an out of town contractor working without paying the fee.
So much from free enterprise.

Reply by John Tennant on 4/1/11 2:53pm
Msg #378343

Re: Business Licenses....if it's like here where I am

Actually, in the city of San Diego, if your business is in one of the surrounding cities, and you provide services within the San Diego city limits you are actually required to get the "License Fee". Is it fully enforced? Not to my knowledge, however, if there is a complaint against your business the city can require the fee and also a penalty. There is a real problem here with contractors doing shoddy work.

Reply by Marian_in_CA on 4/1/11 2:27pm
Msg #378335

Business licenses won't be covered in Notary classes. Yes, that are generally required. It's a part of being in business as an independent contractor. Most incorporated cities require you to get one. It's kind of basic general business knowledge.

In many towns, these aren't so much licenses as they are tax registrations. You have to pay a tax each year to be able to be in business.

The town that I just moved to charges the tax based on your annual business income.

If you live in an unincorporated area, you may need to check with county or state authorities.

In California, the state has a really great online tool to help you determine what licenses or permits you may need for your type of business:

http://www.calgold.ca.gov

Reply by Roger_OH on 4/1/11 2:31pm
Msg #378337

On the positive side...

your license fees, Chamber memberships, etc are tax-deductible as business expenses!

Reply by James Dawson on 4/2/11 1:15pm
Msg #378395

Re:to add to Marion's post (good site) Business Licenses

Q & A for my county - Alameda

I conduct business in several cities. Can I get just one license to do business in ALL of them?

Unfortunately, no. Each city has its own Business License requirements and you must have a Business License to conduct business in each one. Fortunately, you only pay the tax on the portion of gross receipts that is generated in each particular city or county.

It is important to know that most California cities and counties have a Business License tax ordinance. However, each city has its own tax rate, structure, and requirements. Check with the appropriate city of county for theirs.

Reply by MW/VA on 4/1/11 8:13pm
Msg #378372

Yes, I set my business up with a business license &

registered the "ficticious name" (I use a co. name). In my area it's really about signing up for business taxes, which are very small. For instance, the biz license itself is based on gross earnings. The biz taxes are on business equipment. I pay $40 for the annual license and maybe $25 in annual taxes. I did, however, set up as an LLC through the state. That originally cost $100 & renews for $50 a year.
It's all worth it to me. I want to establish credibility by operating a legitimate business. It's kind of a joke in some ways, considering what's gone on in the industry, but I make sure I've got myself covered. The tax people lOVE to go after small business owners that don't report income. They have a field day with that. Good luck.

Reply by John Tennant on 4/1/11 10:45pm
Msg #378381

Re: Yes, I set my business up with a business license &

You are Soooo right about the IRS.