I would be shocked if you got fined. You are so newly in business. Fines happen when they think you have been avoiding them. You have not: you just started work.
Yes, you can deduct all expenses for this year. Even the 2005 expenses on getting your commission and other things before actually doing your first signing. And it will look good to the official in your city when they check state tax returns against existing business licenses: you will have gotten your license mid-year.
By getting your license now, you are protecting yourself in another way. If a city official goes snooping around websites, phone directories, or other places looking for unlicensed businesses, you will be found to have a license or at least to be well into the process of getting one. City governments are strapped for money. They really do go snooping.
I haven't had to deal with a Home Office license. You might ask Terri G directly about her experience. What might be helpful: when I moved into my new home last summer, I told the condo office and my neighbors that I was a notary who worked out of my home but that I never, never, never had clients meet me there. I always meet with clients away from the condo. Plus I do a lot of my preparation and reporting work over the internet.
The neighbors and staff were relieved to hear my explanation up front. They like that I am frequently home during the day because more daytime activity in a complex equals fewer thefts. I headed off future questions about FedEx and supply deliveries.
Plus people see notaries as quiet and competent. It is not like I am running a "Melody Dawg, the Bounty Hunter" business out of my condo.
I also do the occasional free notarization for the condo office. You may wish to offer that to your neighbors.
Not legal advice, I am not a lawyer, etc, etc. But I was a free-lance business manager for many types of businesses in California for over 25 years so I speak from that experience.
You are the one initiating the business license and doing so early on. You should be fine. |
