Contractors License

keithguts

Question, do you need to have Contractors License if you are doing day work for people.

__________________
CORNUCOPIA Prof. Carpentry
*Home of Plenty*

Paul Burns

I once asked a rich, retired, and still fairly young client of ours where and how he got all of his money and his answer was,....."Cheat!"

I think the odds of someone getting into serious trouble for working here and there for a few dollars per year, does not have much to worry about. However, I would recommend going ahead and getting a license and even incorprating. I'm basically just repeating the advice that I read in "Rich Dad, Poor Dad."

I believe what the author is saying in that book is that almost
everyone should be self employed/ and/or incorporated in one way or another for their entire lives. And the younger you are when you start, the more you will save/earn/avoid having to pay. The reasons are that when you are incorporated, LOTS of things that most people pay normal, full prices for, a person that owns a corporation is able to deduct those things as a business expense. IOW, the people that own corporations will pay a LOT less tax, than all of those people that do not own their own company!

Over the course of an entire adult lifespan, this savings alone can amount to hundreds of thousands of dollars, that you would otherwise have simply given to the government(s). And just because you own a business does not mean that you have to work at it full-time or make a profit. Personally, I would just find a hobby and then form a corporation around it somehow. That way, at least a lot of the THINGS that you buy for your hobby are tax deductible OR basically bought for 30% off of the ticket price.

At least that is what I got out of the book, and it made perfect sense to me. Especially since I had owned a business for most of my adult life and my tax bill has always been a LOT less than if I had earned that money working for someone else without having my own license or corporation. I mean most of my life, people that earned the same amount as I was earning were paying 30-50% in taxes. I only paid about 1/2 of that. I'm sure that most people on this BB would have the same sort of story.

So as far as Kyosaki (sp?) the author of Rich Dad, Poor Dad, get licensed, incorporate, and start counting all of the money you save!

Somebody also said, "Find something that you LOVE to do, and THEN figure out a way to make money at it." That was in response to the question, "How can I make it through life without working?" That one makes sense to me too.

So you might get lucky if you form a corporation around a hobby. You might not ever have to work another day in your life!

Good luck.

Paul