I am in the process of purchasing a small pickup truck and would like to be able to hire myself out for small weekend jobs. I have a steady regular job and I am not looking to replace that but just looking for a way to do something different on the weekends and make a few extra bucks.
The type of jobs I was hoping to pick would be helping people with anything that will not fit in their car, or maybe even small moving jobs. As I read up on this it seemed this would be a small moving company.
It seemed simple at first but then someone suggested I should become a corporation .
Now here are my current roadblocks.
1. Even though the state says you can be a business anywhere in the state my township says I can't have a business in my house. I told them I would not be doing business in my house but in my truck. Who is right, can my township say I can not get certified as a mover and use my little truck on the weekends for little odd jobs.
2. The insurance person I am talking with says that this type of would be more like a 'handy man' and would require lower general libality insurance. Is this true and would this type of work be an 'handy man' or a mover?
3. Do I truly need to be a corporation just to hire myself out on the weekends?
Not every business activity is licensed at the state level. In my state (which is not NJ), when the state web site doesn't specifically list a business as needing a special license, the business activity is usually unlicensed and subject only to local business licensing, if required. You might check the web site you mentioned and see if you find a disclaimer with similar information.
If NJ charges sales tax on services, you may also need to contact your state tax commission to obtain a sales tax permit.
ChristineL | Former Moderator |
9/14/2009 - 3:43 pm
Hi rrobertc,
Thanks BizResearcher for the helpful comment!
Have you gotten a chance to take a look at our Starting a Small Business Guide?
It provides a simple step-by-step approach to starting, registering,
financing a business and has information about taxes, permits, and
licenses as well.
Since your are considering having your business at home, please take a look look at our Home Based Business Guide. It has information about zoning,
which may explain why your township does not allow your business to be
based in your home. Which city and state are you located in?
To answer your question about corporations, take a look at this list of business entities, which also has a link to a guide about choosing the right business structure. We also wrote a great blog about LLC v. S-Corp that may be useful.
Our Business Insurance section is a great resource that you should look into. We also blogged about Small Business Insurance, so feel free to check that out too. However, I suggest you speak to a professional regarding this matter.
If anyone has experience or insight in this matter, please do add and comment!
Message Edited by Christine_Lai on 09-14-2009 03:45 PM
The problem may be in calling yourself a moving company. Most cities have zoning restrictions on where different types of businesses can be located. When you say 'moving company,' the city probably assumes you have large moving vans that will be parked at your home. Perhaps better designations for your business would be handyman or errand service. Either of those may be acceptable home-based businesses. In most states, cities are allowed to enact laws that are more stringent than state laws, but they can't enact laws more lax than state law. Your city has apparently decided to enact stricter laws and that is causing your problem.
You definitely don't need to be a corporation for a small business like yours. However, you might want to register with your state as an LLC. That way, you are protected from personal liability if someone's furniture or property is damaged. They could sue the business, but not you personally. You might also want to check into being bonded. That will protect you when going into people's home or businesses.
I checked the guide and I found a listing for Mover and Wharehouseman (see page 74). This may cover what you're trying to do but it looks like the description of the job does not cover you completely.
As BizResearcher said, not every business needs a special license. Generally, the businesses that require a license are ones where you need to have special skills (e.g., lawyer, accountaint, nurse). My business for examples, website hosting, does not require me to have a special license. If you do not see your business listed, then all you need to do is register as a business.
You were asking about forms of business. You can be a sole proprietor, which is what you were initially suggesting. But, because of you're particular endeavor, you're really opening up yourself to liability (e.g., damage someone's property, etc.). So, you really want to get an LLC which allows you to act as a sole proprietor in terms of taxes but gives you the liability protection of a corporation.
Oh, when you're ready to start promoting your business, I think craigslist.com would be a really great option for you.
Good luck! :)
This has all been good information, I am still reading some of this.
My most immediate question however is when I go to this document link I am not seeing anything caller a handy man, messenger, or even refuse removal which is another category I thought I would fit into.
http://www.nj.gov/njbusiness/forms/license_2007.pdf
You don't need to be a corporation - but, you might think about some form of organziation that limits your personal liability should something go wrong. As a sole proprietor, your personal assets are at risk of a law suit since you and your business are one in the same. Forming a corporation could limit your personal liability in most situation but also require other burdens that may not suit you. There is a form of organization that provides the best of both worlds - limited liability and hardly any other burdens and that is the LLC.
BizResearcher | Window Shopper | 9/21/2009 - 8:06 pm
ChristineL | Former Moderator | 9/14/2009 - 3:43 pm
BizResearcher | Window Shopper | 9/14/2009 - 2:39 pm
hostingdiva | Creator | 9/22/2009 - 11:38 am
rrobertc | Performer | 9/19/2009 - 6:11 pm
phanio | Contributor | 9/15/2009 - 10:12 am
Join The Discussion
You must be logged in to join the discussion. If you already have an SBA Community account, Log In to join the discussion.
New users, Register for a new account and join the conversation today!