Notices

Contractor/ Business question

Old 07-20-2012, 08:16 AM
  #1  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: May 2008
Location: Between Richmond and Williamsburg
Posts: 2,964
Default Contractor/ Business question

I am a Contractor, and have been in business for quite a while. My question concerns business licenses (tax). My business license is based on my gross receipts. I am required to have one every year in the county which my business is located. Nothing abnormal about this. My concern (beef) has to do with other county's in which I do work. In the last few years all these other countys have made it mandatory to have a business license in their county if I'm doing work there. They won't issue me building permits and such unless I have a business license on file with them. My problem with this situation is it seems like I am being taxed twice on the same receipts. Say at the end of the year, I have a $1 mil in gross receipts. I have to base my license in the county I'm based on this amount. Now, I also have to state gross receipts of $500k for a house in the next county over for their license and pay that fee, which is always a percentage of gross receipts. So now, although I only have total gross receipts of $1mil, I've had to pay for receipts of $1.5 mil. Does this seem legal or am I just missing something?
twobyfour is offline  
Old 07-20-2012, 08:20 AM
  #2  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: May 2008
Location: Between Richmond and Williamsburg
Posts: 2,964
Default

I'm just not sure why I have to have a business license in every friggin county I work in. I have 7 from last year.
twobyfour is offline  
Old 07-20-2012, 08:44 AM
  #3  
Senior Member
 
Join Date: Nov 2007
Location: MS gulf coast
Posts: 669
Default

Twobyfour, I was a GC for 20yrs in LA.

Occu license only in the Parish/county business was based in,

My state GC/Builders license superseded all other parish/county

occupational licenses in other areas.

Sometimes counties will try to extort you into paying...Fee"s

Check with your state licensing board. Possible your state is different.

Yes it is a conundrum, after all the "fee"s and permits we have to abide by.

I'm glad I'm done,good luck to you.

rowbear
rowbear is offline  
Old 07-20-2012, 08:48 AM
  #4  
Senior MemberCaptains Club Member
 
Join Date: Oct 2006
Location: Downeast, North Carolina
Posts: 6,131
Default

I've not heard of this scam before.

When I was licensed, it was for the whole state (CT) and registered with the town that was my place of business. Then, you paid for building permits in the town you were working in. The permit was based on the projected cost of the project. Some towns had the GC pay the fee based on the total and the subs only had to pull a "free" permit for their work. Other towns required each of the subs to also pay a fee.

I know one thing. If the guberment can figure out a way to triple tax you, they will!
davedowneast is offline  
Old 07-20-2012, 08:54 AM
  #5  
MemberCaptains Club Member
 
Join Date: Sep 2004
Posts: 77
Default

This is a common thing in alot of states to need a business license in each city you perform work in for contractors. Most "home" cities will allow you to back out the revenue from other cities when you file their business license as long as you can show where you are paying the license fee to the other city. That way you should not get double taxed.

For example - total revenue $1,000,000

City A - $250,000 reported sales
City B - $250,000 reported sales
Home City - $500,000 reported sales. ( You will have to prove you allocated the other revenue to the other cities and paid the tax)

You should probably check with your accountant or CPA about this and see what they know about your local laws.
Mckee14 is offline  
Old 07-20-2012, 09:10 AM
  #6  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: May 2008
Location: Between Richmond and Williamsburg
Posts: 2,964
Default

The town in which my business is located has said I cannot back out the receipts from other locality's. This is just something that has popped up over the last few years, and it now seems that all the locality's have gotten together on this. I've never thought this was right, its always pissed me off, but I just do it without raising to much hell so I can move things along. This is a total seperate thing from the permits. To me this would be like a lawyer having to buy a business license for each county he goes to court for. I'm just wandering how other contractors view this situation.
twobyfour is offline  
Old 07-20-2012, 09:37 AM
  #7  
Senior Member
 
Join Date: Nov 2007
Location: MS gulf coast
Posts: 669
Default

Did you get the ridiculous letter about the $250 4 hour class

to educate you on the hazards of lead paint...

You could have shot my balls thru a cannon on that one

rowbear
rowbear is offline  
Old 07-20-2012, 09:43 AM
  #8  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: Feb 2003
Location: Thornton's Ferry,NH,USA
Posts: 10,659
Default

You'll want to check with a tax accountant on this one. The local clerks will often claim you have to pay them because their local reg.s say so but there may be a state exemption or court finding contrary to that.

Good luck!
Kamper is offline  
Old 07-20-2012, 12:44 PM
  #9  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: Aug 2003
Location: On The Razors Edge
Posts: 9,936
Default

What state do you live in?? Thats retarded!!
Here in MD, I have a STATE license and Florida STATE license.
Having said that, MEP guy's are required to have a license in each county they work but that is just to pull permits.
Just1more is offline  
Old 07-20-2012, 02:08 PM
  #10  
Senior Member
 
Join Date: Feb 2011
Location: cape may,nj
Posts: 370
Default

When I lived in new york, thats how it was with licenses in each area we worked. I moved to new jersey and it was the same thing until about 2004-5 when the state came out with there own and it overrides the towns licenses.
ifishbuster is offline  
Old 07-20-2012, 02:18 PM
  #11  
Senior MemberCaptains Club Member
 
Join Date: Jan 2004
Location: Sharon Springs, NY
Posts: 4,515
Default

No license required where I live (wish it was), but some cities here do require them, and you better have the license for the particular city your working in. Plus you better have the proper license. I mostly have sub-contractor license (can't pull permit) for commercial construction.

Got caught in Buffalo this year without it. Code Jerk Off threatened to put me in jail.

I didn't have enough cash to make that go away in my pocket, but that's definitely where our conversation was going.
Mike Boehler is offline  
Old 07-20-2012, 02:19 PM
  #12  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: May 2008
Location: Between Richmond and Williamsburg
Posts: 2,964
Default

Originally Posted by Just1more View Post
What state do you live in?? Thats retarded!!
Here in MD, I have a STATE license and Florida STATE license.
Having said that, MEP guy's are required to have a license in each county they work but that is just to pull permits.
I am in VA. This is not referring to contractors license. I am Class A licensed by the state, insured yada yada yada. This is just for a business license, like I guess a restaurant would have to have.
twobyfour is offline  
Old 07-20-2012, 02:20 PM
  #13  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: May 2008
Location: Between Richmond and Williamsburg
Posts: 2,964
Default

Originally Posted by Mike Boehler View Post
No license required where I live (wish it was), but some cities here do require them, and you better have the license for the particular city your working in. Plus you better have the proper license. I mostly have sub-contractor license (can't pull permit) for commercial construction.

Got caught in Buffalo this year without it. Code Jerk Off threatened to put me in jail.

I didn't have enough cash to make that go away in my pocket, but that's definitely where our conversation was going.
Again, this is not referring to my contractors license.
twobyfour is offline  
Old 07-20-2012, 02:52 PM
  #14  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: Aug 2003
Location: On The Razors Edge
Posts: 9,936
Default

No wonder!!
Va. will always try and screw you 3 ways to Sunday!!
That doesn't seem right, or legal, what you are talking about though. But what do I know, I'm just a contractor!
Just1more is offline  
Old 07-20-2012, 03:02 PM
  #15  
Senior MemberCaptains Club Member
 
Join Date: Jan 2004
Location: Sharon Springs, NY
Posts: 4,515
Default

Originally Posted by twobyfour View Post
Again, this is not referring to my contractors license.
Even in our great tax state, we don't need license to do business. Just pay your taxes and you can do what ever you want.

I get what your saying now.
Mike Boehler is offline  
Old 07-20-2012, 03:02 PM
  #16  
Senior Member
 
Join Date: Jan 2006
Location: Sunny florida
Posts: 23,041
Default

Florida certified contractors only need to show license, insurance, and business license for the county they live in. I can work anywhere in the state just by registering with the governing municipality that oversees where the jobsite is.
billinstuart is offline  
Old 07-20-2012, 03:04 PM
  #17  
Senior Member
 
Join Date: Nov 2009
Location: Charlotte, NC
Posts: 235
Default

That sucks that you get hit twice. I know it is a lot of trouble but if it amounts to a substantial amount of money and you regularly do a lot of business in the other city you could maybe register another business in the second city. Just use a slightly different name and get a post office box for the address in the second city. You could even have the mail forwarded to your physical address. Just thinking. I have been known to go out of my way on such things just for the principle of it.
Flyvet is offline  
Old 07-20-2012, 03:07 PM
  #18  
Senior MemberCaptains Club Member
 
Join Date: Dec 2007
Posts: 15,655
Default

McKee14's post is the one to follow. You have to state your revenue, but their new rules mean that you state it for the area you are being licensed for; not the whole nine yards.

Your county can't expect you to pay license fees for revenue generated in another taxing district.
bamaboy473 is offline  
Old 07-20-2012, 04:39 PM
  #19  
Senior MemberCaptains Club Member
 
Join Date: Jun 2006
Location: The South
Posts: 2,216
Default

Originally Posted by bamaboy473 View Post
McKee14's post is the one to follow. You have to state your revenue, but their new rules mean that you state it for the area you are being licensed for; not the whole nine yards.

Your county can't expect you to pay license fees for revenue generated in another taxing district.
This

I have multiple business license's in the same state, but they are based on contract values for each particular area, not what volume I do in the whole state.
Contractor is offline  
Old 07-20-2012, 04:58 PM
  #20  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: May 2008
Location: Between Richmond and Williamsburg
Posts: 2,964
Default

Originally Posted by Contractor View Post
This

I have multiple business license's in the same state, but they are based on contract values for each particular area, not what volume I do in the whole state.
This is exactly what I do, except the county I'm based in makes me report every dollar. All the licenses are based on the contract amount except for the county in which I'm based, which makes me report everything from all the other county's as well.
I think I'm going to be talking to my high school buddy who was just elected as a state rep.
twobyfour is offline  

Thread Tools
Search this Thread