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Young Business owner

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SteveJobs

Junior Member
What is the name of your state (only U.S. law)? Illinois

I'm starting a "business", which is repairing people's iPhone screens. I'm not filing for a business license, until I see that there's a great demand in my community. But my question is, as long as I don't make over 5,xxx (IRS states as long as you make under that you don't have to file), should I be ok? Or could the town come and fine me for providing a service to the public without registering a business or LLC?

And, even if I don't file for business licenses, can I still have a website under a name (IE: Dr. iPhone Repair)?

Any help is provided! Thanks!
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? Illinois

I'm starting a "business", which is repairing people's iPhone screens. I'm not filing for a business license, until I see that there's a great demand in my community. But my question is, as long as I don't make over 5,xxx (IRS states as long as you make under that you don't have to file), should I be ok? Or could the town come and fine me for providing a service to the public without registering a business or LLC?

And, even if I don't file for business licenses, can I still have a website under a name (IE: Dr. iPhone Repair)?

Any help is provided! Thanks!
Its not true that you don't have to file a tax return if you make less that 5000.00 when you are self employed. You will owe self employment tax on any earnings over 400.00 even if you owe no income tax.

If you are a teenager earning pocket money its not likely that the town would require you to register a business.
 

SteveJobs

Junior Member
Its not true that you don't have to file a tax return if you make less that 5000.00 when you are self employed. You will owe self employment tax on any earnings over 400.00 even if you owe no income tax.

If you are a teenager earning pocket money its not likely that the town would require you to register a business.
Good Point. I did not factor in that the laws would be different for self employment.

But, if I am branding myself as a company, without a license, would they fine me? Like say I wanted to call myself Mr. iPhone Man Repair, start a website, etc, but just operating out of my home, would they fine me?
 

Just Blue

Senior Member
Good Point. I did not factor in that the laws would be different for self employment.

But, if I am branding myself as a company, without a license, would they fine me? Like say I wanted to call myself Mr. iPhone Man Repair, start a website, etc, but just operating out of my home, would they fine me?
Why are you so against getting a business license? Don't you think that being a licensed business owner would help you? How old are you?:confused:
 

LdiJ

Senior Member
Why are you so against getting a business license? Don't you think that being a licensed business owner would help you? How old are you?:confused:
Depending upon the municipality, the cost of a business license might be beyond the means of a youngster trying out something that isn't going to net a huge amount per customer. I do agree however that the OP's age is significant. I am suspecting a minor teen simply due to the whole "5000.00" bit, (that's a bit of a clue, tax-wise) .
 

SteveJobs

Junior Member
Why are you so against getting a business license? Don't you think that being a licensed business owner would help you? How old are you?:confused:
Depending upon the municipality, the cost of a business license might be beyond the means of a youngster trying out something that isn't going to net a huge amount per customer. I do agree however that the OP's age is significant. I am suspecting a minor teen simply due to the whole "5000.00" bit, (that's a bit of a clue, tax-wise) .
I am only 16. While yes, getting an actual license would be beneficial, I want to test the water first. If I do not get any/much business, then I simply stop ordering my parts, and cease my operation. If I get quite a bit of customers, then I will apply for a business license and LLC.
 

quincy

Senior Member
I am only 16. While yes, getting an actual license would be beneficial, I want to test the water first. If I do not get any/much business, then I simply stop ordering my parts, and cease my operation. If I get quite a bit of customers, then I will apply for a business license and LLC.
You may wish to rethink your proposed business name. Using the trademarked iPhone in your name will attract the attention of Apple lawyers - and Apple has not shown a real fondness for independent iPhone repair businesses as it is.

Apple has their own outlets and retail stores to fix the iPhones. Although there are a few independent companies (like iFixit and uBreakiFix) that have been successful, these companies and their customers should know that Apple will void any warranties if the phones are not fixed by an Apple-authorized repair store. Getting authentic replacement parts can be difficult, as well.

Using iPhone in your business name will probably be seen by Apple as an infringement on their trademark rights and an unfair business practice. While you can advertise that you repair iPhones, you cannot use the iPhone trademark to promote your own business or imply in any way that Apple endorses, supports or authorizes your repair company.

I think that licensing your business would be smart. Many consumers will not want to trust their phone to an unlicensed business. You not only have to look at your state licensing requirements, but also any local requirements.

If you have a free legal aid clinic or a law school or even a high school career counselor available to advise you, you would benefit from this guidance.

Good luck.
 
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LdiJ

Senior Member
I am only 16. While yes, getting an actual license would be beneficial, I want to test the water first. If I do not get any/much business, then I simply stop ordering my parts, and cease my operation. If I get quite a bit of customers, then I will apply for a business license and LLC.
You can safely "test the waters". Just keep good bookkeeping records of your income and expenses so that you can properly do your taxes...and get your parents involved at tax time because your taxes need to be coordinated with theirs. You will remain their dependent and if you don't coordinate with your parents you can cause problems with their taxes.
 

SteveJobs

Junior Member
You may wish to rethink your proposed business name. Using the trademarked iPhone in your name will attract the attention of Apple lawyers - and Apple has not shown a real fondness for independent iPhone repair businesses as it is.

Apple has their own outlets and retail stores to fix the iPhones. Although there are a few independent companies (like iFixit and uBreakiFix) that have been successful, these companies and their customers should know that Apple will void any warranties if the phones are not fixed by an Apple-authorized repair store. Getting authentic replacement parts can be difficult, as well.

Using iPhone in your business name will probably be seen by Apple as an infringement on their trademark rights and an unfair business practice. While you can advertise that you repair iPhones, you cannot use the iPhone trademark to promote your own business or imply in any way that Apple endorses, supports or authorizes your repair company.

I think that licensing your business would be smart. Many consumers will not want to trust their phone to an unlicensed business. You not only have to look at your state licensing requirements, but also any local requirements.

If you have a free legal aid clinic or a law school or even a high school career counselor available to advise you, you would benefit from this guidance.

Good luck.
Thank you. I may just go up to city hall and see what it would cost. I know I can not use the word iPhone in my name, and that it voids the warranty. I have a strong waiver I will have my customers sign.

You can safely "test the waters". Just keep good bookkeeping records of your income and expenses so that you can properly do your taxes...and get your parents involved at tax time because your taxes need to be coordinated with theirs. You will remain their dependent and if you don't coordinate with your parents you can cause problems with their taxes.
Thank you. :)

And even if I do not officially have a license, can I still have a website?
 

Just Blue

Senior Member
Thank you. I may just go up to city hall and see what it would cost. I know I can not use the word iPhone in my name, and that it voids the warranty. I have a strong waiver I will have my customers sign.



Thank you. :)

And even if I do not officially have a license, can I still have a website?
You need to understand that most people will not do business with an unlicensed person. I think you seem amazing for 16...I really do. Perhaps your parents can assist you in this venture with attorney and license needs.

Best of luck!
Blue


BTW...I thought you were in your 20's per your postings! :cool:
 

SteveJobs

Junior Member
You need to understand that most people will not do business with an unlicensed person. I think you seem amazing for 16...I really do. Perhaps your parents can assist you in this venture with attorney and license needs.

Best of luck!
Blue


BTW...I thought you were in your 20's per your postings! :cool:
I realize that it would give me more credibility. I only plan on advertising this on Facebook and word of mouth for now. We have a little community, so it helps.

And thank you! :)
 

quincy

Senior Member
I realize that it would give me more credibility. I only plan on advertising this on Facebook and word of mouth for now. We have a little community, so it helps.

And thank you! :)
Steve, you may want to check on state registration requirements. It is my understanding that all businesses conducting business in Illinois or with Illinois customers need to register with the state.

Good luck.
 

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