Business license Madison county (Huntsville: house, income, property tax)

[NoleFanHSV]

Does Madison county required a business license for an individual to do software consulting on the side of their primary day job?

[dijkstra]

Technically yes, pretty much any business is supposed to have a license. However, if it is just little side jobs, no official business office, or advertising, no phone in a business name, etc. it is rare for someone to get a license since it really isn't a business as much as somebody just doing small side work. Worst case scenario, they send you a letter stating you are required to have a license and you fill in the information and send them a check. With that said, the license probably would only be $40 or $50 so what difference does it make, might as well get one. The only thing is, with that kind of business they may send you a business personal property tax request each year where you have to list out all the business property and values and pay an annual tax assessment which still won't be very much if anything since the business probably would not actually own anything or have any type of inventory.

[Reactionary]

dijkstra is right, you should get a license (they even have a license for home-based businesses). Between the business hassles and taxes and having to actually perform, I found that it was too much trouble just to earn some beer money

On the positive side, it makes it seem like you're a real professional. Get a business card too; that's really kewl.

"A business license is required for commercial and residential based businesses operating in the City of Huntsville."

https://www.huntsvilleal.gov/busines...ness-licenses/

[NoleFanHSV]

That sounds a little too much hassle. I'm getting conflicting information on if it's required or not. There isn't a software engineer type license on the list from the state. I won't be working from my house either.

[harry chickpea]

Welcome to over-regulation. It is all about creating income for government and preventing entrepreneurs from starting up. Your best defense is a savvy CPA and an understanding of what is required and what is bs.

If you have less than a couple thousand in potential income and no liability, just do yer thing for a year or two. Any penalty will be minor if it fails or you take it legit quickly once you recognize it works. If you think it might take off, do what I did and incorporate with a subchapter S and LEGALLY take all of the advantages offered to the giant companies that end up paying no taxes. I must stress though, don't do this on your own but have a smart CPA guide you on what is acceptable and what is not. I didn't bother with home office deduction because I was advised it is a red flag and causes more problems than it is worth. This IS a great country, and those with great ideas can succeed, but only with professional guidance.

[tullahomaboy]

Run down to the courthouse, they start around $20-$25 dollars in the bottom bracket, up to 3 something in the top. The bottom goes to around 24k I believe.

Be happy you aren't in the city limits, the minimum is around $150, had to renew mine the other day, it hurts.