Labor is not subject to sales tax. Only parts that are sold are. I have registered my business in the city in which I work since I began. The penalty for not doing so is quite high. Business licenses for self employed people are also sometimes used as verification when applying for loans such as in home mortgages and refinancing. Usually the fees for business licenses such as we practice are nominal. You will also need a resale license if you provide parts for which you charge and you need to collect sales tax on those items. You will then need to fill out a quarterly report for the State Board of Equalization indicating how much tax revenue you collected and send them their due. Keep good records! Sales tax audits are not uncommon. David Love ----- Original Message ----- From: "pianolover 88" <pianolover88@hotmail.com> To: <pianotech@ptg.org> Sent: September 02, 2002 1:07 PM Subject: business license? This query is mainly to those techs residing/doing business in California, and specifically in the Los Angeles area. How many of you have a business license? Is it actually required since we generally do not have a store front, inventory and/or employees? If it IS required, does that mean that if we service, let's say, 35 different cities, we need 35 separate business licenses??? A fellow tech friend tells me that he has one license for the city in which he lives, and he must pay not only his yearly fee, but sales tax on his tunings NO MATTER WHICH CITY he has done his work! I find this very hard to believe. I hope someone in the know can set the record straight on this one. thanks in advance. Terry Peterson _________________________________________________________________ Join the world's largest e-mail service with MSN Hotmail. http://www.hotmail.com
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