Independant Contractor, or Business Owner?

[Prizm]

What is the name of your state? Colorado

At what point does an independant contractor require a business license? If I offer pet grooming services for people's pets in their own homes (as opposed to a mobile van unit or personal shop) and develop a route, would this be considered a business that requires a business license or could it be considered independent contractor work?

I would greatly appreciate any advice or information defining the differences between independent contractors and business owners because from what I've researched on my own, my understanding is that independent contractors are business owners. I would be extremely appreciative for any help you can give!

Thanks in advance!

 

[Zigner]

What is the name of your state? Colorado

At what point does an independant contractor require a business license? If I offer pet grooming services for people's pets in their own homes (as opposed to a mobile van unit or personal shop) and develop a route, would this be considered a business that requires a business license or could it be considered independent contractor work?

I would greatly appreciate any advice or information defining the differences between independent contractors and business owners because from what I've researched on my own, my understanding is that independent contractors are business owners. I would be extremely appreciative for any help you can give!

Thanks in advance!

These requirements would be specific to each city you do business in. You would need to contact/research each city.

 

[Prizm]

The part about dog grooming that I find confusing is, there is an act called The Pet Animal Care Facilities Act, which definatley applies to groomers who groom within a fascility, but I'm not sure what in home grooming would fall under. But please help me to understand the premise of independent contractor vs. business owner. If I mowed my neighbor's lawn as a favor for a few dollars, I presume I wouldn't need any special license so at what point would a business license be necessary(in general)?

 

[Zigner]

The part about dog grooming that I find confusing is, there is an act called The Pet Animal Care Facilities Act, which definatley applies to groomers who groom within a fascility, but I'm not sure what in home grooming would fall under. But please help me to understand the premise of independent contractor vs. business owner. If I mowed my neighbor's lawn as a favor for a few dollars, I presume I wouldn't need any special license so at what point would a business license be necessary(in general)?

These requirements would be specific to each city you do business in. You would need to contact/research each city.

 

[moburkes]

The part about dog grooming that I find confusing is, there is an act called The Pet Animal Care Facilities Act, which definatley applies to groomers who groom within a fascility, but I'm not sure what in home grooming would fall under. But please help me to understand the premise of independent contractor vs. business owner. If I mowed my neighbor's lawn as a favor for a few dollars, I presume I wouldn't need any special license so at what point would a business license be necessary(in general)?

The point at which you need a license is the point at which you open your business.

 

[Prizm]

The point at which you need a license is the point at which you open your business.

I was ignorant of the full meaning of an independant contractor. (I didn't know an independant contractor was a business owner) What I meant was, at what point does work performed on the side become a business with business legal requirements?

 

[moburkes]

I was ignorant of the full meaning of an independant contractor. What I meant was, at what point does work performed on the side become a business with business legal requirements?

The moment you decide that you are in a business.

 

[Prizm]

The moment you decide that you are in a business.

So, when I declare my income and explain I earned it grooming dogs..are you saying I wouldn't be accused of doing business without a license?

 

[moburkes]

So, when I declare my income and explain I earned it grooming dogs..are you saying I wouldn't be accused of doing business without a license?

No. Let me clarify. The license is due the moment this becomes a business, as defined by you or the government. Therefore, get the license before you open up shop. Now, the IRS could care less about your income. They just care about the taxes. Your local government cares about the license.

 

[Prizm]

No. Let me clarify. The license is due the moment this becomes a business, as defined by you or the government. Therefore, get the license before you open up shop. Now, the IRS could care less about your income. They just care about the taxes. Your local government cares about the license.

I appreciate your helping me with this! Let me also just clarify that I'm grooming individual's dogs, in THEIR homes. I'm not planning to open a physical shop or buy into a mobile grooming van. I like grooming in the customer's home and the customers like that I'm offering such a specialized service. In the future, I can see building clients to the point where I am grooming full time in this fashion, but in the meantime, I'm working a part time conventional job as a customer service representative and grooming only on my days off. It's not really a business yet because it isn't my main source of income. It's more like work I do on the side. However, if customers continue referring me to their friends and I bring additional clients via advertising, would a point come when the work I'm performing must be declared as a business?

Another confusing thing is, I'm not sure if my local government requires a license for in home grooming. I found an act listed on the Colorado Department of Agriculture's website that indicates a license is mandatory to enable authorities to inspect grooming facility, but since I don't have a facility, I don't know if it applies to me. What's more, I don't want to call them and ask because if a license is required, I would rather wait until I'm ready to advertise and declare myself as a business, like you said, rather than now when I'm only prepared to groom a few pets on my days off from my main job.

Thanks Moburkes

 

[FlyingRon]

I appreciate your helping me with this! Let me also just clarify that I'm grooming individual's dogs, in THEIR homes. I

Let us clarify. It's still a business (if you do it for money). You need to find out what the local requirements are. It could be as simple as registering (with or without an associated fee). Around here, you'd need to register (if their is a fee, it's only a few bucks) and you would be liable to collect sales tax. This means you need to file returns with the state periodically (even if you don't make any sales).

Another confusing thing is, I'm not sure if my local government requires a license for in home grooming.

We're not either, but the fact that a business-specific license like grooming isn't required, doesn't mean you don't have other regulatory responsibilies.

Your best bet is to see if your local government has some small business assistance program that can walk you through the requirements.

I found an act listed on the Colorado Department of Agriculture's website that indicates a license is mandatory to enable authorities to inspect grooming facility, but since I don't have a facility,

Most likely they want to know that! What are you doing for equipment, how are you transporting that, how do you clean the equipment between customers. etc...