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9 Replies Latest reply: Apr 20, 2009 11:24 AM by dublincpa RSS

City Business Operation License and Tax

sam2011 Newbie
Currently Being Moderated
I am operating a software consulting serivice in California.
- Do I have to pay any taxes to City Of Sacramento?
- Do I need any license to operate?

I am operating from my home. Its a S corporation.

I got letter from MUNI about these license. Please let me know.

Thanks,

Sam
  • Re: City Business Operation License and Tax
    LUCKIEST Master
    Currently Being Moderated
    City Business Operation License, Welcome Sam

    Everybody who operated a business should have a professional like an Accountant or a Lawyer to answer your questions. they know you and your business better than we do.

    Good luck, LUCKIEST
    • Re: City Business Operation License and Tax
      MyBusCanHelp Newbie
      Currently Being Moderated

       

      If you want to protect your business and do all the right things, You can have unlimited questions answered by a lawyer when you purchase a business legal plan for your home based business.

      Go to www.prepaidlegal.com/hub/mjdistri and click on business plans and checkout the coverage.
      You can sign up online and be able to talk to your Provider Law Firm within 72 hours or less.

      Best Regards,
      MyBusCanHelp
      • Re: City Business Operation License and Tax
        LUCKIEST Master
        Currently Being Moderated
        Business Operation License

        Thanks Michael, Will add the subject (prepaid legal) to the agenda for the next meeting
        • Re: City Business Operation License and Tax
          consultingbob Newbie
          Currently Being Moderated
          > Thanks Michael, Will add the subject (prepaid legal) to the agenda for the next meeting

          Luckiest, if you are going to discuss prepaid legal, make sure you get someone from BOTH sides of the issue to discuss the situation. There are many cons to prepaid legal as well as pros, and business owners should be aware of both of them. Many of the prepaid legal programs out there are nothing more than a "get rich quick" money making scheme that serve more to make money for the person selling the plan than to serve the needs of the people buying them.

          They also shouldn't just jump into buying the first plan that comes along and is offered to them. They may not be aware that they already have access to a prepaid legal plan, if they belong to a group such as the National Association of Self Employed (NASE), or the Alliance for Affordable Services.

          Bob Parker
          Complete Internet Consulting
  • Re: City Business Operation License and Tax
    Bridge Expert
    Currently Being Moderated
    Call the city and ask them. Every municipality regulates differently. You may also have to pay state taxes depending on what you are doing - call your state dept. of treasury.
    • Re: City Business Operation License and Tax
      consultingbob Newbie
      Currently Being Moderated
      > You may also have to pay state taxes depending on what you are doing - call your state dept. of treasury.

      For California, as a software developer/consultant, there are no additional state fees or taxes, beyond the normal Self Employment taxes (I know - I am one).

      He just needs to make sure remembers to file his quarterly Estimated Taxes to the State, as well as the Federal ones, because California will get nasty if they don't get their money :)

      Bob Parker
      Complete Internet Consulting
  • Re: City Business Operation License and Tax
    consultingbob Newbie
    Currently Being Moderated
    Hi Sam,

    Definitely call your City Hall and talk to the Department of Licensing. There is a very real possibility that you not only need a license to operate your business, but operating your business where you live may be a violation of the Zoning Ordinances where you are. Not only that, but Sacramento might have it's own Business Tax and Licensing fees depending on the type of business that you are running.

    I just recently ran into this very situation down here in Burbank, California and had to pay both a License Fee & a City Business Tax - simply for being a consultant working out of my home. They even went so far so to send an inspector out to my home to make sure that I wasn't violating the zoning regulations by having customers/clients coming in all day and annoying my neighbors, or delivery trucks blocking traffic, etc.

    Make sure when you call City Hall that you check and see if they have any satellite offices near you, if you don't live near downtown. A lot of cities like Sacramento have small business offices around town that issues licenses and such, or you may even be able to apply online.

    Good luck with your business!

    Bob Parker
    Complete Internet Consulting
  • Re: City Business Operation License and Tax
    LUCKIEST Master
    Currently Being Moderated
    City Business Operation License and Tax

    Sam, I have another suggestion.

    There is a company called "businesslicenses" (one word). You enter your business code and your zip code and they will tell you all the licenses and permits you need for your type of business and location.

    Good luck again, LUCKIEST
  • Re: City Business Operation License and Tax
    dublincpa Apprentice
    Currently Being Moderated
    As a California S Corp, you are subject to the $800 minimum franchise tax as well as a 1.5% S Corp income tax.

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