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How many hours a month can you legally work on the side (out of your home) without actually incorporating or starting a new business? I would like to earn about $600 per month and do not want to take on a second job, or hassle with my own business and all the legal issues. But I want to stay legal. Any suggestions?
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I live in a cashless society. . . where has all my money gone!?!
If you work 1 hour or 100 hours, legally you still have to report the income to the IRS and your state if your state has a personal income tax. As for a business license it depends on your city, or county laws. For a small computer consulting or web business, most people don't get a license if they don't have a lot of business traffic coming to the house and no one complains about it.
The advantages of having a business license is if the income increases substantially, you will be able to write off some expenses, like fuel and auto expenses to go and visit your clients, schooling and training, web access, software that is essential to your business, your computer, etc.
If you intend to work on computers in CA, whether you do it full or part time, you will need a city business license if you live within city limits. If you live in the county, certain counties require a business license. You will also need a CA Bureau of Electronic and Appliance Repair License from the CA Dept. of Consumer Affairs and a CA Sellers Permit from the State Board of Equalization. Also you will need to check local zoning ordinances governing types of home businesses which are allowed.
if you do not have employees, it's not that hard as long as you remember to pay your sales tax on time and quarterly income tax in the following years.
And I agree about the tax write offs... if your only doing this part time, you could do it legally and in the end pay no taxes (other than sales tax) and have many benefits besides!
Aside from what was mentioned above, if you work out of your house you can write off a portion of your rent/mortgage, remodeling costs, electric, phone, etc
it would be pretty easy to legally show a loss if you plan on only $600/month income!
***Oh to go back to when it was just me instead of this multiple employee headache I've created!
[This message has been edited by pga (edited October 04, 2000).]
[This message has been edited by pga (edited October 04, 2000).]