Side work - What's required legally to start

What is the name of your state (only U.S. law)? va

My husband is an HVAC Technician. In addition to his typical 9-to-5 job he and is looking to start doing some side work that includes signing people up for service contracts (having to do with his typical HVAC work).

My question is where should he start? Were should he look to get information on what needs to be reported to the government. Paying his taxes on income he earns isn't a problem, we're just not sure if he needs to charge his potential customers taxes. And if so, how much and when (i.e. taxes on the equipment and/or labor costs?). Also, is he required to get a business license if it is only "side work"?

We're just not sure where to go to start looking into the "legalities" of this.

Thanks for your help.

You should also find out if the company he works for 9-5 will allow this. My company does not allow work like this if it is in the same field or skills because it could be looked at as competition. Around here, HVAC techs have to work lots of overtime in the summer which might not allow him to work at night.

Thanks for the advise on checking with his current company. The reason he wants to start the side work is that his company is not giving him enough hours (he is lucky if he gets 30 hours a week and this is typical throughout the year) so side work shouldn't be a problem to keep up with (and it would be very minimal - just enough to get a little extra money every month).

Anyone have any advise on what he's required to do (so we don't get in trouble with the government)?

Thanks.

Virginia.gov - Business - Home Page

At the very least, he should get some tax advice. The biggest issues I see with start-up businesses are that people don't stop to consider the costs of taxes & insurance. They think just because they can make twice as much $$ per hour working side jobs, that they're raking it in. Then they find out how much they owe in taxes, and/or something goes wrong on a job and they find out they're not insured.

You're doing the right thing by asking the questions up front. Good luck.

Yep, his licensing and insurance are going to be key. He won't be operating under his employer's if he's working on the side.

Thanks

Thanks for the information and advise. That was my concern about starting the side work (I didn't want to find out later on that we owe a huge amount in taxes and if something goes wrong I didn't stop to think about the insurance).

Thanks again.

Taxes are straight forward. He owes taxes on the money he takes in (less deductions for expenses) in his business. He'll need to pay both the income tax as well as the self employment tax (subject to the various caps). He should be making estimated tax payments as he goes which will defray the sudden large tax liability at the end of the year.