When am I a “business” or considered “doing business?”
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
When am I a “business” or considered “doing business?”
If I have a lawn mower and my neighbor asks me to mow his lawn and offers to pay me and does, am I a business? Or if my neighbor asks me to paint her garage door and offers to pay me and does, am I a business? And if I am, do I also have to pay sales tax and property tax on my lawn mower or paint brushes? Basically, can I do anything or make anything for anybody, get paid for it and NOT be considered a “business” or “doing business?”
Asked on January 19, 2011 under Business Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Don't worry about whether you're a "busines" or not--it's largely irrelevant. Here's what's important:
1) If you make any income doing anything, you have to pay income tax on it.
2) If you provide a good or service which is covered under your state's sales tax, you have to pay sales tax on it.
3) If you're doing anything which could incur liability (e.g. damage property or injure a person), you could face legal liabilty (e.g. be sued) and need to think about whether you should either (a) set up as a corporation or LLC to protect your personal assets; and/or (b) get some form of insurance.
If you regularly provide services or sell goods, you may need to register as a business or as doing business--but that's secondary to the issues above and is not something you'd face unless you are regularly doing some economic activity.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.