business license

[TnSawyer]

How many out there are working without a business license.  If not licensed do you advertise public, like in papers or flyers.  I am kind of afraid to put an add in the paper because the county will want their part( what they think is their part ) and they are real stiff on property zoning and permits. If the right person saw the ad they might get nosy.

[Furby]

What is it you do or plan to do?
Are you custom sawing at the customer's site?

[TnSawyer]

We have been  sawing for a while setup stationary.  We are just part timers and have been buying logs and selling the lumber but would like to get into sawing customers logs too, because it is getting hard to buy good logs around here and still make profit.  Not looking to go mobile.  Maybe every now and then. Just want to get some more attention.

[Furby]

There are some advantages to having a DBA (Doing Business As) name.
Tax breaks and being able to buy things from companies that don't sell to the consumer are a couple.
So setting yourself up as a business might be worthwhile and probly won't hurt anything.

As far as zoning, what is your current zoning and will you be breaking any laws operating there?

[TnSawyer]

We are zoned residential and agriculture.  No restrictions.  You have to be rezoned and go before a planning commission to be rezoned for commercial.

[Furby]

You might be ok under the AG as you are processing a forestry product.
Run an add and see what happens.

[Brian_Rhoad]

Here in PA when I asked about a business license or registering, I was told I didn't have too as long as I did business in my name or my name was included in the business name. I do business as Brian L. Rhoad Band Sawn Lumber. Coon Creek Lumber would not be acceptable without applieing for a ficticiuos name or DBA.

[wwsjr]

I have a county business license primarily for income tax purposes. It is only $20 per year. I cannot legally sell one board retail without collecting sales tax and send it to state each month. Sales tax here is a big hassle to deal with. I stick to custom sawing and wholesale lumber/cants to pallet/tie companies. They are buying for manufacturing and resale. Portable sawmills are considered ag equip and are not taxed as personal/business property.

[JPM]

the best advice is talk to a lawyer/cpa . there is a big differance between a business & a hobby
and the irs vs. local have differant views of  laws too.

[Brad_S.]

Here in NY I have to collect tax on custom milling (a provided service) and retail sales. I need to get a tax exemption form from anyone buying lumber without paying tax. I do my portable milling in a five county area, each having it's own tax rate and I have to keep the amount of tax separate and send a check to the state quarterly.

The Sales Tax department and the IRS are not agencies to play games with. 

As far a zoning, my local guy will work with me, advise me and cut me some slack as long as I tell him exactly what I'm up to. A competitor adopted an adversarial relationship with him and the zoning officer makes his life difficult in return.

Doing business as a sole proprietor leaves one open to the possibility of losing everything should someone ever sue you. (i.e. a stair stringer you had sawn breaks and someone takes a header into the basement.) Forming a corporation is the best thing to do and something I have failed to do for way too long.

IMO, unless you check with local regulations and plan to get whatever paperwork you need, it would be better to stay low key and under the radar and let word of mouth do your advertising.