Legal Question in Business Law in California

do I need a business license if I do some work for a landlord?


Asked on 12/09/09, 3:07 am

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Well, let's analyze the situation. If you are paid by someone (whether it is a landlord or not is probably not significant) for performing services, you are either an employee or an independent contractor.

If you are an employee, signs of that would be that you have withholding taken out of your check, and the employer provides workers' comp. insurance. There is a long list of tests that are used to decide whether work is performed as an employee or as a contractor.

If you are an independent contractor, you'd be considered in business for yourself. You'd report your income to the IRS, not via a W-2, but by filing Schedule C (or the like).

Most cities or counties would expect an independent contractor to have a business license if the contractor is doing business in that jurisdiction. If you are in an incorporated city, and believe you are an independent contractor because you are not an employee, ask the city's license department. If you are in an unincorporated area, ask the county.

There is a separate question as to whether you need a contractor's license........I am assuming we are discussing business licenses as contrasted with contractors' licenses which are issued by the Contractors State License Board.

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Answered on 12/14/09, 9:14 am


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