Arizona  |  Business Law

Legal Question

Asked on: 5/08/09, 4:04 pm

Operating Without a Business License

Two detectives came to my door and charged me with a failure to procure or exhibit a business license... which, when I looked it up online seems to fall under a law 13-3706 in the state of Arizona with a max 4 months in prison and $750 fine.

Where I think I screwed up is that I did open a business checking account using a TIN that I legally acquired from the IRS for this internet-based company, reselling a software product. The detectives arrived at this knowledge through an investigation of a larger matter. I am basically reselling this software to a person who is in turn selling it to a third (or would that be fourth?) party. The person I'm selling to couldn't sell it directly for some reason.

I have a court date now and I'm wondering what I'm actually facing... what's the worst case scenario... what should I do or not do to better my situation?

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