Home Occupation Permit vs  Business License

Note: the following apply to all businesses including home, online, and internet business.  When you operating an online business the physical location of that business is where your office or store is or the place the computer is located like you home office.

The fee which is actually a tax to obtain a businesses license vary. The fee for a Special Event in a convention center for example may be about $200, a barber shop may have to pay about $100.  Some entertainment places such as dancing clubs may have to pay  thousand or more.  Most jurisdiction have a schedule of fees tailored to specific types of businesses and activities.

How is an Occupation Permit Different from a Business License?

A business operated in a residential area in the City limits (home occupation) is subject to standards set forth in  most home occupation Codes across the United States,  and may be subject to a  Home Occupation Permit fee ( which is about $10 to $50 or more as of 2011 ).  Most codes provide that a  Business License Application and a home occupation permit is required and here is  the home occupation standards and to determine if you are, or are not, required to get the Home Occupation Permit  and pay a flat tax fee in advance for the entire year.

Example 1 - Here is when you don't need a Home Occupation Permit or you don't need to pay a flat tax rate home occupation fee:

In most codes, if you conduct a business that its home occupation occupies less than 20% of the residence, has no client visits, and no on-site retail sales you may be able to avoid paying the tax or having to get the permit.

First, a business license A Business license is a certificate that most government agencies. The function is to allow you to operate you business based on their standards such as fire and other safety rules. For that, they charge a flat rate fee which is a fee. The issuance of the type of business license is based on the type of business activity, the location, the gross income, and the number of employees.  Here is an example.  Angel Ina Jolee decides to start a child adoption company to help celebrities adopt children.  She borrows $1,000,000 from Brat Pete and sets up a home office.  That home office will most likely be required to have both a business license and a home occupation permit.
 

Example 2 - In the example below you may need to get a Home Occupation Permit and pay a tax fee:

The activities pertaining to you Home Occupation must not be the main use of the home and it does not bother the neighbors in any way such as having signs and other destructing to the neighbors noises such as having UPS trucks or Fed Ex trucks parking and delivering merchandise to your house.
 

If you pass that test, in most cases, you will also need a  Business License with the office of  of the Financial Business License Services Department.
The business use of the home occupation space cannot be more than  20% of the space or not more than about $800 feet whichever is less that is used for business activities.  This is part of the application process so you need to submit a floor plan of the area to be occupied and used for the business.  That must be submitted when you submit your business application.

If you are ready to start a home occupation office or other business, we can help you file all your documents in addition to the home occupation permit and the business license.
Keep in mind that you may also need a DBA registration of your business name as well as a seller's permit if you sell taxable items.

 

Simply go online to www.businessnameusa.com

Answer our online questionaire, then fill out our business information form as thouroughly as possible so that once you completed every step of our payement form, we will be able to begin processing your order immediatelly.

www.businessnameusa.com

310-455-6675

Employees that work in your home:  In most cases,  you are allowed to have 1 or 2 employees and some jurisdictions want you to be residents of the home occupation building.  In addition, these employees may not use residential parking facilities, Two nonresident employees are permitted (off-street parking must be provided). The person providing the business must reside within the dwelling.
Selling items directly to customers that visit your home is not allowed and signs must be smaller than a couple of square feet.  
Customers are allowed to come in for consultation but the number of customers cannot exceed about 5 a day in most local rules.  Nor are delivery vehicles are allowed that are associated with your home occupation business.

Simply go online to http://www.businessnameusa.com/services/fees.htm to determine your fees on a state by state basis.