Business - Residential Shop, should I get a license?

[Guest]

This is one of the sticky questions I would like eventually move over to the new "Business" forum if it goes through. I realize the answer varies from state to state but I think it's still a valid question and something very useful for most of us without a commercial shop.

I have received a request for a business license from a vendor who I plan to buy a lot of supplies from. They will not deal with individuals, only business-to-business transactions.

I want to register my business and get a license. However, I'm not sure about a couple of things. The biggest deal is picking a 'business code'. that classifies the types of activities I will engage in.

Any ideas?

[Guest]

Re: Business - Residential Shop, should I get a license?

This is the closest code I have been able to locate.

NAICS 332812
"Metal Coating, Engraving (except Jewelry and Silverware), and Allied Services to Manufacturers"

[Guest]

Re: Business - Residential Shop, should I get a license?

I think you're going to have to take some chances if you want register as business and this is out of your home. It's in your best interest to check with the local authorities as to wether or not you can even operate at your location. If you check and they say no go, you screwed yourself. If you go ahead and do it, they find out and shut you down.

Yeah I just made it to the last screen and I can't force myself to "submit" the form. I don't want to hang myself but I certainly don't want to lose account with vendors or potentially have someone else register my business name.

Not really sure what to do about this one...

[Guest]

Re: Business - Residential Shop, should I get a license?

For those that seem all hyped up about a business forum, this is probably the first question they should be asking themselves as it seems most are in this situation.

I agree. This is an area that usually generates a lot of confusion. I certainly look forward to reading everyone's feedback on this subject. I want to see how others have done it in the past and how some are either going about it or will do it in the future.

[baz]

Re: Business - Residential Shop, should I get a license?

Juan]

I think you're going to have to take some chances if you want register as business and this is out of your home. It's in your best interest to check with the local authorities as to wether or not you can even operate at your location. If you check and they say no go, you screwed yourself. If you go ahead and do it, they find out and shut you down.

Yeah I just made it to the last screen and I can't force myself to "submit" the form. I don't want to hang myself but I certainly don't want to lose account with vendors or potentially have someone else register my business name.

Not really sure what to do about this one...

having an account with a vendor is of no use if you can t operate your business anymore
before you submit that form maybe you could have a friend of yours make a few calls to local and or state authorities and tell them that HE plans on starting a business at HIS place that way if they say it s a no no then they won t be checking on you.
i know nothing about your state laws but i would try to stay away from words like (metal coating) (painting )or (metal treatment) those words are associated to chemicals and chemical residue and you probably would not be allowed to run such a business from your home if you have neighbors close by

[Guest]

Re: Business - Residential Shop, should I get a license?

You could try this, set up a Doing Business As (DBA) it would be something like "Juan Doing Business As Juan Powdercoating" or whatever your names would be. This is usually done at the local town hall for a small fee. They will ask you what kind of Business you want to run tell them your doing "mail order powder coated automotive parts" or something like that as long as you dont tell them that you are spraying cleaning yada yada yada and dont have nozzy neighbors this should allow you to fly under the radar for the mean time. You might have to get a P.O Box. it also allows you to open a bank account under the business name. Doing all this will get you a Federal Tax ID# that is associated with "Juan Doing Business As Juan Powdercoating" and that is the number that vendors usually ask for to make sure they are doing B2B.

Here is a great resource for information http://www.sba.gov/localresources/distr ... index.html
With the economy the way it is the sba is all about helping people get a business started and it is a free service. In a past experiece i used them and they were very good about returning phone calls and email.

[Guest]

Re: Business - Residential Shop, should I get a license?

I will not be requesting a business license without some further research. The business code is definitely a big deal and I'm not sure how much the state will look into it. They may look at it and make nothing of it, they might just ask a few questions, or might even want to come by. It's a pretty big risk I'm not willing to take right now. There are other business codes that are far more generalized and common, not sure how far you can steer from the business' actual activities.

Like I said... They shut me down right away without asking a question. They might make a call just to clarify... "Oh, so you're just painting small hobby car parts for your friends? no worries" or they could ignore it, or the worse... just drop by. I'm really not sure about it... Any feedback would be highly appreciated.

[Guest]

Re: Business - Residential Shop, should I get a license?

Thanks for the info PowderCoatThis. I looked into the DBA while I was filling out the application for a business license. That's actually an option on the same registration form. You have the choice of selecting a company name with a new tax-id or selecting a DBA with your social security. Both required listing a business code since that was actually the previous step.

I've spent a lot of time on the SBA website. Without a doubt it's a great source of information. I'll have to give them a call and actually come down to their office to discuss my specific situation. Thanks for pointing that out, I think that's my next step.

[Guest]

Re: Business - Residential Shop, should I get a license?

I live outside the city in the county (even though I have a city address)....some of the countys around here are much more lax in the zoning and inspections which is a huge plus....we are thinking about a "show room" in town at some point but to keep the "shop" out of town. Dont Know if getting outside of town at some point would be better for you or not.

[Guest]

Re: Business - Residential Shop, should I get a license?

I agree that would be the best thing to do cause it varies from state to state even town to town so much that it is real hard to give info.

Here is another idea do you have any good friends that own a garage parts store speed shop something of the nature? You could always ask them to use their Tax ID# to get a foot in the door with the vendor then just give them you contact info and tell them that you run that part of the business. Not that I have ever done that

[Guest]

Re: Business - Residential Shop, should I get a license?

Some times all it takes is a Fed ID number for them to sell to you? You have a business name already even if its not reg in the county or state and someone else could reg it. But use your home address with the business name and the tax ID number and then I think you will be set. The delivery people just deliver to the address so if nothing else just stick up a small sign like the yard sell type? The name of my place is Dad's Garage and I can buy all types of signs that say that and I have.

Can't find my post on the tax ID number but check this out http://www.gov-tax.com/taxid/taxid_l.ph ... 1237507433

Also check to see what the company requires to sell to you?

Also have you checked to make sure you can even do what you do where you live? My brother-in-law is in the city and can not operate a business like what we do on the street he lives on?

[Guest]

Re: Business - Residential Shop, should I get a license?

I agree that would be the best thing to do cause it varies from state to state even town to town so much that it is real hard to give info.

Here is another idea do you have any good friends that own a garage parts store speed shop something of the nature? You could always ask them to use their Tax ID# to get a foot in the door with the vendor then just give them you contact info and tell them that you run that part of the business. Not that I have ever done that

That is certainly an option in my case. I would just rather avoid doing that often, I feel like it's starting to be a frequent question for me and would rather be as transparent as possible. It's definitely an option right now though.

[Guest]

Re: Business - Residential Shop, should I get a license?

Juan]

I agree that would be the best thing to do cause it varies from state to state even town to town so much that it is real hard to give info.

Here is another idea do you have any good friends that own a garage parts store speed shop something of the nature? You could always ask them to use their Tax ID# to get a foot in the door with the vendor then just give them you contact info and tell them that you run that part of the business. Not that I have ever done that

That is certainly an option in my case. I would just rather avoid doing that often, I feel like it's starting to be a frequent question for me and would rather be as transparent as possible. It's definitely an option right now though.

I know the feeling I have only done it a few times and also use their address to have stuff shipped to that they wont ship to a residential address. I am also trying to stay under the radar as I am running this out of my basement. So no advertising just word of mouth and a coupe of forums that I most examples of my "current projects" wink wink. I am lucky tho that I live on a wooded lot that is secluded and I dont have any buzzy bodies that bother me.

[Guest]

Re: Business - Residential Shop, should I get a license?

I know the feeling I have only done it a few times and also use their address to have stuff shipped to that they wont ship to a residential address. I am also trying to stay under the radar as I am running this out of my basement. So no advertising just word of mouth and a coupe of forums that I most examples of my "current projects" wink wink. I am lucky tho that I live on a wooded lot that is secluded and I dont have any buzzy bodies that bother me.

I'm in the exact situation as far as word of mouth and forums go. Doing it out of my garage, but I don't have the benefit of being secluded. I'm smack down the middle of a small neighborhood with the nearest house just 7 feet away from my garage wall! Real state in Vegas is at a premium and I'm pretty much stuck here for a while until I lease a commercial unit.

[51ChevyPickup]

Re: Business - Residential Shop, should I get a license?

I have been through this before, inquire with the city, no names, no address, as little info as possible. When it comes to those folks less is more, try to find out as much as you can. Downplay the business (what you are actually doing) If you go forward use the Fed Tax ID, it wil keep your SSN out of public view. Keep it simple with the city they are not your friend!!!!!