“I’d like to operate my business on a very part-time basis, primarily targeting college students and pulling the occasional client from LinkedIn. When should I be concerned about licensing?“
Regardless of your state of residence/business operation, you’re required to secure a business license and be recognized by the state as a business before that first dollar is earned.
The good news is that a business license is very affordable.
A small fee is required to license your resume business, sometimes for as little as $50 per year.
Individuals who operate businesses without a business license could face a financial penalty when caught.
As cash-poor states take action against those who step outside the “letter of the law,” you could find yourself in an unwelcome territory if you choose to avoid getting licensed.
Not sure where to acquire your license?
Start by visiting your local or state government website.
In my state, visiting my local Business.Ohio.gov website and clicking on “licenses & permits” is all that’s needed.
There may be a way around getting licensed.
For example, let’s say you work as a freelance resume writer and plan to write one or two resume writing firms.
As a freelance writer, you do not need a business license.
In this case, you’ll file a W-9 form which each firm you write for and will claim your earnings on your tax returns using your social security number.
No Schedule C is required when completing your 1040 tax form at the end of the year.
