City prohibits running business from home garage

Check the city ordinance regarding home occupation. I ask my city planner, they said I couldn't do work from an accessory structure. Checked the ordinance and there was nothing of the sort, the permit form even used garage as an example. Don't trust them, check for yourself.

It is funny that you can do work at any house but your own. What they are really worried about is the nuisance or traffic, noise etc.
 
Just wanted to correct that a TIN or EIN is a "Federal" deal, one that you get from the IRS. If you ever want to have employees, you fill out Form SS-4 and obtain an EIN. Also, if you ever find yourself as the Executor of an Estate (which I've done 3 times thus far) you'll need an EIN to file taxes. :)

If you are a sole-proprietorship or a partnership (owner operated business) then you'd fill out Form SS-5 for a TIN (basically a Social Security Card). Again, if you are a sole-proprietor you can *and will* most likely use ONLY your social security number as the way you file your taxes.

Generally there is no correlation with your local city/county/municipality requiring you to have a business license and/or a TIN/EIN before obtaining one or the other.

However, some cities (like LA for instance) tie in your business license with their ability to TAX YOUR BUSINESS and want to have one of the three above numbers on file when issuing your business license. (Just so that they can jack you up come next year after you file your income statement, as your license fee is directly related to your income. The more you make, the more they take!.) :eek: Just give them your SS# when filing for your business license. ;)

In any event, you do not need a business license to file a Form SS-4 or SS-5. Go to the IRS site and click.... you'll find out fairly quickly that they'll let you file that form. In fact, you can file as many different ones as you like! :rolleyes: (For what I don't know.... but you can surely do it till your eyes turn red.)

From the IRS:

This EIN is your permanent number and can be used immediately for most of your business needs, including:
•Opening a bank account
•Applying for business licenses
•Filing a tax return by mail

However, it will take up to two weeks before your EIN becomes part of the IRS's permanent records. You must wait until this occurs before you can:
•File an electronic return
•Make an electronic payment
•Pass an IRS Taxpayer Identification Number (TIN) matching program


How Do I Get A TIN?

SSN

You will need to complete Form SS-5, Application for a Social Security Card (PDF). You also must submit evidence of your identity, age, and U.S. citizenship or lawful alien status. For more information please see the Social Security web site.

Form SS-5 is also available by calling 1-800-772-1213 or visiting your local Social Security office. These services are free.

EIN

An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to identify a business entity. It is also used by estates and trusts which have income which is required to be reported on Form 1041, U.S. Income Tax Return for Estates and Trusts (PDF). Refer to Employer ID Numbers for more information.

Obtaining a "Registered Agent" is ONLY needed if you are filing for, and want to be, an official Corporation or LLC. In fact, you can be your own Registered Agent if you have a physical address (not a PO Box). Basically the "agent" is a person that is always there to accept any legal and/or tax documents that may come your way. Which means.... if the IRS decides to audit you, or raid you, then they contact your "agent" and don't show up at your place while you're talking with customers. Some local agencies (including cities etc.) like to see an official agent on file lest they get nervous should there ever be a condition where they want someone official to serve papers on. That does not however release you from the wrong end of the swinging stick when it swings your way! :rolleyes:

Having an agent is only if you want to file as an Corp/ LLC. Plus if say you ever move your address, the address of the "agent" stays the same. OTOH; My family always owned businesses (from the 40's till 90's), and I've owned business most of my life and never had a "registered agent".
 
What about your neighbors? I would not want a business run next door to me. That is what zoning is for. I certainly would not what a business next door to me. If there was one I would complain.
 
Awww Man, come on guys I see a lot of the guys on here running out of their garages and some of you have really nice set ups! you have a official business then you have to be zoned business, legally,,,
As I mentioned, you need to know your neighbors. work a deal for them,, don't work at night if your going to make a lot of noise, most buffers don't make enough noise to wake the neighbors unless its after say 11 pm and no one has a tv on and the house is built lame. My Father in law actually did have an inspector come over, 4 cars in drive 2 being worked on. as he showed up one car pulled out, teh next car he said belonged to a buddy (which it did) and the other 2 were his. The guy saw 3 bikes in the garage, started talking bikes, and said,MMMM you work on bikes also? I cant get mine to run right. Then said" oh and not worry about your neighbor,, ill have my bike here this evening" LOLOLOLOL

So its really up to you. As a few have said " worked many years out of garage and now decided to be official"
 
cardaddy said:
Just wanted to correct that a TIN or EIN is a "Federal" deal, one that you get from the IRS. If you ever want to have employees, you fill out Form SS-4 and obtain an EIN. Also, if you ever find yourself as the Executor of an Estate (which I've done 3 times thus far) you'll need an EIN to file taxes. :)

If you are a sole-proprietorship or a partnership (owner operated business) then you'd fill out Form SS-5 for a TIN (basically a Social Security Card). Again, if you are a sole-proprietor you can *and will* most likely use ONLY your social security number as the way you file your taxes.

Generally there is no correlation with your local city/county/municipality requiring you to have a business license and/or a TIN/EIN before obtaining one or the other.

However, some cities (like LA for instance) tie in your business license with their ability to TAX YOUR BUSINESS and want to have one of the three above numbers on file when issuing your business license. (Just so that they can jack you up come next year after you file your income statement, as your license fee is directly related to your income. The more you make, the more they take!.) :eek: Just give them your SS# when filing for your business license. ;)

In any event, you do not need a business license to file a Form SS-4 or SS-5. Go to the IRS site and click.... you'll find out fairly quickly that they'll let you file that form. In fact, you can file as many different ones as you like! :rolleyes: (For what I don't know.... but you can surely do it till your eyes turn red.)

From the IRS:

This EIN is your permanent number and can be used immediately for most of your business needs, including:
•Opening a bank account
•Applying for business licenses
•Filing a tax return by mail

However, it will take up to two weeks before your EIN becomes part of the IRS's permanent records. You must wait until this occurs before you can:
•File an electronic return
•Make an electronic payment
•Pass an IRS Taxpayer Identification Number (TIN) matching program


How Do I Get A TIN?

SSN

You will need to complete Form SS-5, Application for a Social Security Card (PDF). You also must submit evidence of your identity, age, and U.S. citizenship or lawful alien status. For more information please see the Social Security web site.

Form SS-5 is also available by calling 1-800-772-1213 or visiting your local Social Security office. These services are free.

EIN

An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to identify a business entity. It is also used by estates and trusts which have income which is required to be reported on Form 1041, U.S. Income Tax Return for Estates and Trusts (PDF). Refer to Employer ID Numbers for more information.

Obtaining a "Registered Agent" is ONLY needed if you are filing for, and want to be, an official Corporation or LLC. In fact, you can be your own Registered Agent if you have a physical address (not a PO Box). Basically the "agent" is a person that is always there to accept any legal and/or tax documents that may come your way. Which means.... if the IRS decides to audit you, or raid you, then they contact your "agent" and don't show up at your place while you're talking with customers. Some local agencies (including cities etc.) like to see an official agent on file lest they get nervous should there ever be a condition where they want someone official to serve papers on. That does not however release you from the wrong end of the swinging stick when it swings your way! :rolleyes:

Having an agent is only if you want to file as an Corp/ LLC. Plus if say you ever move your address, the address of the "agent" stays the same. OTOH; My family always owned businesses (from the 40's till 90's), and I've owned business most of my life and never had a "registered agent".
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part of this is true, but part of it may not be as accurate, depending where you live. I just did this literally 2 weeks ago. in order to fill out the information required to get a Federal IRS tax ID number, be it a EIN or a TIN (same thing, different names) they require you to list your LEGAL business name. meaning you need to have already gone to the SOS or other formal association in your state to form a LEGAL business (LLC, SP, Corp, etc...). once you have done that, then you can go to irs.gov and fill out paperwork to get an ID #, and print it off immediately, take it to your bank and get a business account. the business account is linked to your tax ID #, and is required by your bank beforehand.

far as a registered agent goes, most detailing businesses are LLC's, and should be, that is why they are required by the SOS. yes, technically, you can be your own registered agent, but dont even consider it as its highly recommended that you pay the small fee and let someone else handle all of your legal correspondence. not to mention, easier for you since you dont have to keep track of legal paperwork and deadlines each year. I have spoken to a few of my attorneys clients about this, as well as, multiple car dealers/detailers/wholesalers/body shops/mechanics, and they all recommend doing an LLC to separate your personal assets from your business. you cant risk being sued for anything PERSONALLY, so you must have a legal separation from yourself/family/household, and your business. if that makes sense. a quick google search will answer 90% of your questions relating to this topic.
 
I live in a neighborhood where the houses are close together, and up and down both sides of the road. but, almost everybody goes to work during the day, and we all just mind our own business. I never start before 9:00, and never work past 7:00 at the latest. never once had anybody complain. the guy across the street is always cutting wood and working on things, doesn't bother me. my theory is: in this world today, people are crazy. if you say one little thing to the wrong person, they might get upset and seek some sort of revenge. I don't need that problem, so I just let people do what they want and stay out of their business, and they do the same. we're all friends here. cant we all just get along?
 
They cant stop you from doing a hobby people get paid from hobbies all the time its hard to prove if its at your garage
 
so much of this, matter of fact, all of this, depends on where you live. cannot compare my town to yours, it doesn't make sense. of course, being good friends with the "mayor" of your town and the police chief doesn't hurt.
 
beamerstrumpet said:
must be a hell of a HOA! I will never live in a HOA ill do what I want on my property.
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My hard earned money will never be wasted on a HOA, its just simply code enforcement in a town where the median house prices are ridiculous and everyone wants to protect their property values. Your free to have all the hobbies you want here, as long as they don't break code/rules. I used to live in a much bigger city where you could park your car on the front lawn, leave the trash cans out for a week, and Christmas lights all year round :xyxthumbs:, they could care less about any car detail operation being run out of a garage.
 
Great info guys...thanks. I figure if I detail in there with the garage door down, most people won't even know what I'm doing. I'll install some good lighting in there. Again, I will only be doing a few cars a week, one at a time, and won't have cars everywhere looking suspicious.
 
If I wanted to have a business next door to me I would have purchase a home next door to a business and paid a lot less for my house. Try selling your home with some guy running a business in the street next door to you. Not easy and it reduces the value of your home,

I moved out of the city to live a suburban life if I wanted a business next door to me I would have stayed in the city.

If you want to start your own business man up and rent space in commercial area. Do not annoy your neighbors.

Also, you will never know how turns you in.
 
Mad Wax said:
Great info guys...thanks. I figure if I detail in there with the garage door down, most people won't even know what I'm doing. I'll install some good lighting in there. Again, I will only be doing a few cars a week, one at a time, and won't have cars everywhere looking suspicious.
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There's something about "dodging" that just
never sounds, or ever seems right to me:
No matter the reasoning (excuses) for the evasion.

Bob
 
At the same time, there's something wrong about being required to obtain x number of "business licenses", pay fees and additional bogus taxes as well...no?
 
Captainobvious said:
At the same time, there's something wrong about being required to obtain x number of "business licenses", pay fees and additional bogus taxes as well...no?
Click to expand...
Not if you claim you own and operate
a legitimate Business.


Bob
 
FUNX725 said:
Not if you claim you own and operate
a legitimate Business.


Bob
Click to expand...


I guess my point was that we're already levied enough fees and taxes. For a one man shop business owner, you're getting hit on both sides (business fees and taxes and then personal income taxes).

I do agree that it should be done "by the book", I just don't like the current book is all :xyxthumbs:
 
Why don't you appeal it and have your property re-zoned? I had the same issue until I filed for an appeal, had a hearing and they re-zoned my property residential/commercial. It did cost ~$250 but it's well worth it to be able to have a sign out front.

Sign-Final-Cover.jpg


Board of zoning and appeals. Look into it.
 
I would agree about the value of the house you are trying to sell going down if the next door neighbor is running a business. but then again, my next door neighbor hasn't mowed their yard since early August. so who cares? I look like a superstar.
 
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