licensing for one man consulting company

peter · Guest

Friends are asking me to help with their small business computer problems
(setting up LAN, upgrading drive, memory, ...). They also refer me to their
coworkers, etc. To avoid getting sued personally, I want to set up an LLC
consulting company. However, I found that in the state I live in
(washington), each city requires a business license for anyone conducting
business in the city. This means if I have 5 clients from 5 cities, I would
have to get 5 business licenses from 5 cities, in addition to a license from
the city where my headquarter (my home) is.

Is there a way around this requirement?

John A. Weeks III · Guest

"peter" <nospam@nospam.com> wrote:
Quote: Friends are asking me to help with their small business computer problems
(setting up LAN, upgrading drive, memory, ...). They also refer me to their
coworkers, etc. To avoid getting sued personally, I want to set up an LLC
consulting company. However, I found that in the state I live in
(washington), each city requires a business license for anyone conducting
business in the city. This means if I have 5 clients from 5 cities, I would
have to get 5 business licenses from 5 cities, in addition to a license from
the city where my headquarter (my home) is.

Is there a way around this requirement?

I would suggest talking to your accountant or CPA. You are
going to need an accountant anyway, so get one now. A good
one will save you more in taxes than what they cost.

I cannot see how the system that you describe could be the
way it really is. Perhaps that applies to taveling sales
poeple or other itinirant businesses. Here in Minnesota,
there is no licensing for IT businesses. If you sell a
retail product, then you have to set up with your local
city for sales tax, but only where your retail outlet is
located.

-john-

--
======================================================================
John A. Weeks III 952-432-2708 john@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================

Guest · Guest

"peter" <nos...@nospam.com> wrote:
Quote: Friends are asking me to help with their small business computer problems
(setting up LAN, upgrading drive, memory, ...). They also refer me to their
coworkers, etc. To avoid getting sued personally, I want to set up an LLC
consulting company. However, I found that in the state I live in
(washington), each city requires a business license for anyone conducting
business in the city. This means if I have 5 clients from 5 cities, I would
have to get 5 business licenses from 5 cities, in addition to a license from
the city where my headquarter (my home) is.

Is there a way around this requirement?

That seems odd to me too. I did a quick search and found this link for
licensing in WA state.

www.dol.wa.gov/businesses.htm

It has lots of links, information about licensing requirements, and
forms to download. It may be that you only need a city license for
particular types of businesses, or cities in which you have a physical
presence (such as a store or office).

You might also check with your local Chamber of Commerce.

Jodi

fp · Guest

Quote: However, I found that in the state I live in
(washington), each city requires a business license for anyone conducting
business in the city.

This is common. You should go to the city and find out exactly what the fees
are and what you will be classified as. They probably have a 'professional'
license geared to real estate agents that work from their home. This is most
likely where you will be classified. Let them tell you. Do not register
until they tell you your classification. If they can't do that then don't
register.

Quote: To avoid getting sued personally, I want to set up an LLC
consulting company

You should talk to a tax pro. There are reasons to choose a C-corp, S-corp
or LLC/LLP. You should examine all of them before you leap. Don't forget
that by doing this you register with the State also.

--
******************************
Fred Parker
Lynn Consulting Group, L.L.C.
http://www.lynnconsultinggroup.com
******************************

xpyttl · Guest

"fp" <etickettwothousand@hotmail.com> wrote in message
news:11g97ln9hekld32@news.supernews.com...

Quote: You should talk to a tax pro. There are reasons to choose a C-corp, S-corp
or LLC/LLP. You should examine all of them before you leap. Don't forget
that by doing this you register with the State also.

Listen to Fred. A lot of people jump to the LLC when some other business
form might be best for them. I would add, however, that you want to talk
with a lawyer, as well as a CPA. You tax guy will likely be the main
driver. An important issue here is what your personal goals are. If you
don't have a tax guy already, get someone good and get him up to speed on
your financial situation, not only now, but what you expect down the road.

Different business forms involve different amounts of hassle. The types of
hassle are slightly different too, so the lawyer is needed to help you
understand what the operational issues are. Your CPA, for example, might
tell you that an S-corp is a little better tax-wise, but you may find that
the operational issues of an S-corp are intolerable to you. You might
decide that it's worth the extra tax bill to avoid the operational issues.
That's why you need both forms of expertise. And don't go thinking I said
that an S-corp is more hassle than an LLC. The hassles are different, and
what bugs you is probably different than what bugs me.

For me, a C-corp turned out to be the right answer. For most people, the
C-corp is generally higher taxes, didn't work out that way for me. And the
C-Corp is probably the most paperwork, but that didn't bug me all that much.
My situation is fairly unusual. For most people, the C-corp is not the
answer.

At the end of the day, though, the choice depends on your financial goals
and the kind of relationship you want with your business. YOU need to make
the decision, but you need the CPA and the lawyer to give you the
information you need to make an informed choice. And you need to give them
the information they need to understand what you might care about.

...