Is a License Required?

[dbl_halfcent]

My friend is a metal fabricator and has been offered a side job making a part for another company (not affilliated with his employer).
He has the tools to make this part from home but the company that wants him to do this also wants him to provide a business receipt for their records.
Would this be considered self-employed and/or does he need a Business License?

Your response is appreciated.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by dbl_halfcent:
My friend is a metal fabricator and has been offered a side job making a part for another company (not affilliated with his employer).
He has the tools to make this part from home but the company that wants him to do this also wants him to provide a business receipt for their records.
Would this be considered self-employed and/or does he need a Business License?

Your response is appreciated.<HR></BLOCKQUOTE>

Self employment would be created but check with the State as to a need for a business license. Even if not required I would suggest getting one anyway. Also there may have liablity associated with his being the provider of goods and services. What would happen if his part were to fail and a customer of his client and his client sued him for millions of dollars? He may be wise to incorporate the business and operate it as a separate legal entity. Have him talk to some attorneys and discuss the advantages/disadvantages of sole ownership v. C and LLC status.