If I live in Virginia and I am a sole prop with DBA can I give constructions services to DC and MD?

[rongoldi]

Virginia

If I live in Virginia and I am a sole prop with DBA can I give constructions services to DC and MD?

 

[FlyingRon]

Virginia requires a contractors license for anything that costs more than $1000.
Maryland requires a contractors or home improvement license from just about everybody.
DC is similar to MD.

 

[LdiJ]

Virginia requires a contractors license for anything that costs more than $1000.
Maryland requires a contractors or home improvement license from just about everybody.
DC is similar to MD.

Did you see any reciprocity when you researched that?

 

[rongoldi]

So what does it mean?

 

[rongoldi]

What if I formed LLC in Delaware to take advantage of lack of state income tax but I am operating my business in VA DC MD however it's a cleaning business and I have no intention to hire employees in these states nor open any office. How is the law treating that case?

 

[Taxing Matters]

What if I formed LLC in Delaware to take advantage of lack of state income tax but I am operating my business in VA DC MD however it's a cleaning business and I have no intention to hire employees in these states nor open any office. How is the law treating that case?

Forming the LLC in Delaware rather than your home state of Virigina will not save you any money in tax. It will just mean you'll be paying fees to both Delaware and Virginia for the LLC since you'd have to register the LLC as a foreign LLC in Virginia (and in any other state in which the LLC is conducting business). You can do business in DC, MD, or wherever else if you meet whatever licensing and registration requirements each state has.

 

[rongoldi]

Forming the LLC in Delaware rather than your home state of Virigina will not save you any money in tax. It will just mean you'll be paying fees to both Delaware and Virginia for the LLC since you'd have to register the LLC as a foreign LLC in Virginia (and in any other state in which the LLC is conducting business). You can do business in DC, MD, or wherever else if you meet whatever licensing and registration requirements each state has.

Thank you! So if I open an LLC in Virginia can I do business in DC, MD as long as I meet the licensing and registration requirements is that right?

 

[FlyingRon]

Did you see any reciprocity when you researched that?

THere is no reciprocity. Contractors that operate through the metro region have licenses in each area.

 

[FlyingRon]

Thank you! So if I open an LLC in Virginia can I do business in DC, MD as long as I meet the licensing and registration requirements is that right?

You also have to register with the sales tax agencies in Maryland and DC. I think DC home improvements are taxable services. In Maryland, the service isn't taxable, but you must pay a sales/use tax on any materials brought into the state for use on construction projects.

There are various small business sources you may find helpful in getting set up. The public libraries are usually a good place to start.

 

[rongoldi]

You also have to register with the sales tax agencies in Maryland and DC. I think DC home improvements are taxable services. In Maryland, the service isn't taxable, but you must pay a sales/use tax on any materials brought into the state for use on construction projects.

There are various small business sources you may find helpful in getting set up. The public libraries are usually a good place to start.

Thank you. What if my business doesn't sell anything but cleaning services only after constructions ?

 

[FlyingRon]

Cleaning services are taxable in DC and Maryland. Not in Virginia (just my quick read, you better verify it with the local tax officers).
You don't need the contractors licenses for that.