License, etc in Arizona

Discussion in 'Business Operations' started by canopy2k, Jun 14, 2007.

  1. canopy2k

    canopy2k LawnSite Member
    Messages: 17

    Okay, Ive been doing ALOT of research on what I need for my LCO here in AZ. From what I can gather, I don't need to register with the Registrar of Contractors as I fall under the handyman exception. None of my jobs at this point are over $1000. ;)

    Also, I dont need to charge tax to my customers, as it is a service that is exempt. UNLESS, an item I purchase (such as seed, manure, etc) exceeds 15% of the total bill. IE, I charge a customer $75 to put down seed, and the seed costs $20, then I would have to charge tax on the seed, but I would be able to buy it tax free, so its a wash.

    Is there anyone out there in AZ that runs an LCO? What kind of licenses, etc did you get? I already have a binder on a 300k liability policy, have an EIN, etc. I just want to make sure Im doing all I need to do. Im starting this as a Sole P.


  2. hoskm01

    hoskm01 LawnSite Fanatic
    Messages: 5,690

    Hay Canopy, just saw your post.

    One major thing to consider, maybe I just mis-interpreted your post. Being tax-exempt doesnt mean you are actually buying tax free, you just have to pay the tax yourself (throught the customer) rather than doing it through whoever you purchase the product through. Best thing you can do is consult a CPA for money matters, it could save you big in the long run.

    You are right on the Contractors license amount, stay under that PER JOB, and youll be ok. It is not that you are a handyman, but no task (plumber, electrician etc) needs a license for a job with total amount under 1k.

    Contact each city to find out what the requirements are to operate a business in thier city. They usually want a piece of the pie too!

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