City prohibits running business from home garage

Mad Wax

Mad Wax

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So I just found that out today...I live in Arizona and it just bummed me out. I was planning on going mobile, but doing the longer, more time consuming details out of my garage. I checked with the city, they said I'm not allowed to run a business out of my own garage. I'm only a one man company, and I'll only be doing 1 to 2 cars a week probably at home. Should I just do it anyway? Does anybody else have this kind of issue? Thanks for any suggestions!
 
Mad Wax said:
So I just found that out today...I live in Arizona and it just bummed me out. I was planning on going mobile, but doing the longer, more time consuming details out of my garage. I checked with the city, they said I'm not allowed to run a business out of my own garage. I'm only a one man company, and I'll only be doing 1 to 2 cars a week probably at home. Should I just do it anyway? Does anybody else have this kind of issue? Thanks for any suggestions!
Click to expand...


How would they ever know?
 
custmsprty said:
How would they ever know?
Click to expand...

Because he already told them?

I guess it depends whether they care enough to follow up and check if he is doing it anyway...so given the typical civil servant I guess you're right, he's pretty safe.
 
My Father in law did it for years.When you have it in your garage or driveway,, do not have any signs of your business posted. If you ever get a complaint (and that is really the only reason they would even care) and someone shows up, all you say is , no sir that car is my good friends. He just left it with me. I owed him a favor.
 
I think you will find that most cities have this ordinance, but rarely enforce it unless it becomes an issue of cars stacking up, trash, complaints, etc.

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I'm thinking if my neighbors complained, but I doubt they would. Anyone know how much the fine would be if I got caught? Or would they just give a warning first?
 
This is probably more a case of ask for forgiveness rather than permission.

If anyone asks, say you didn't know it was illegal to run a business from your home.
 
I've done over 50 full corrections in my home garage over the course of 3 years. Don't put signs up and take cash only. Word of mouth is best advertisement. Just hope the word doesn't get to the wrong mouth. I'd say you're fine....the IRS has bigger fish to fry.
 
Been cleaning a dozen or so cars a week out in my driveway for 12 years and have never asked or cared. Live in a small town and cops drive by constantly and do nothing but smile and wave. I do know the town president very well and the police chief is a lifelong friend but I really just dont think anybody cares. Big huge sign in the yard and all.

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Just keep a low profile. Don't put any business signs. As long as you're able to keep place clean and don't make noise, you should be fine. Any next door people who could play spoil sport??
 
I do about 20% of my jobs from home (2-3 cars a week) and haven't had any issues at all. Like others have said, keep a low profile and keep the place clean and you should by fine. My landlord even lives next door and I do all three of his cars twice a year:) It's good to check, but kinda one of those things that you'd be better off not looking into and just continuing on. Good luck with it!
 
It's all about signage and random cars parked in your driveway, along with folks coming and going all the time. What you ran into is pretty much boilerplate for not just cities, but most counties. You can still get a business license, just tell them you're doing mobile detailing out of your pickup and let it go at that. Most banks will not let you open a business account without a business license, BUT.... you can go to the IRS site, apply for a EIN number and be able to print that out from the site. If you know your banker, or your folks, or YOU have been banking there for a while you can just tell them that you want to "do the right thing" (by opening a business account) and that it's just a part-time business (to see if you can make a go of it or something along those lines) and they'll probably let you open a business account with the EIN number as THAT is the number you'll use on your Tax Return (along with your Social Security number of course).

I also wouldn't even *consider* taking cash only! Too many folks these days want to use their credit card for "cash back" or "sky mileage" (or something to that effect). Just get a Square account and the money is in your account usually within 36 hours. Then you can take debit or credit and only pay a few percent (which you can build into your prices). It used to be illegal to charge a premium for accepting "plastic" but those laws have changed. Actually back before they changed you could advertise ALL your prices a bit higher and just put up a disclaimer that you discounted xxx % for "cash". :) (That still works in areas where the laws have you taking plastic without passing on the fees to the buyer, just charge more across the board and discount for cash.) ;)

As for people dropping their cars off.....
Unless you have signs up, or your neighbors complain, then nobody can do anything about it. It's up to the city/county to PROVE you are operating a business, which it's darned hard to do if you are not solidly booked week in, week out.
 
Depends on the city/county I think. At 1-3 cars a week, I think you "should" be OK, but where I live, if you were doing cars every day, it would be a problem.....and any water runoff down the driveway, into the street, or storm-drain, that would most certainly be problematic (where I live).
 
IMO: Best to go legit...and all this entails.
Follow cardaddy's advice in Post #15; :props:
Add in some insurance: that'll be keen.
You are now on-the-ball, to rack-up details!

Bob
 
You have to have a business license with the Secretary of State in order to get an IRS tax ID #. And you have to have that tax ID # to open a business checking account. In that order. You also need to be officially licensed to get insurance. Then you need that insurance policy to get transport plates, which you will probably need if you ever do dealer or auction work. Everything in that order. I just did all of this a month ago to make my long time "business" officially a Business. Also, most, if not all, states require you to hire a Registered Agent prior to getting a business license. Not going to explain that here but you can google it. Just another fee in the long list of fees required to make a business legal.

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If the city says I am not allowed to run a business in my neighborhood, I don't do it. I wouldn't want my neighbor opening a detail shop next door to me and running a buffer and a vacuum all day long. I also wouldn't want dirty water runoff flowing by my driveway all day and going down the storm drain. I feel if you want to open a detail shop, open it in a business environment, with a business license and play by the rules. If you do not want to open a brick and mortar business, invest in a moblie setup of do eco friendly rinseless washes like I do .
 
the difference between using your own garage or a customers garage for the details but still having all your supplies in the truck? not sure they could provide enough of a difference to prove that your business still isn't a mobile one, and that you had them come to you instead that time due to space...
 
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