Hey all, The following posts were removed from this thread in error. I apologize. Thanks, Patrick I've only been a commercial dojo and retailer; that's the only job I've ever had. This has been my experience. The following is for those MA schools that are wanting to open a commercial one. No matter what I might suggest in this post, I strongly advice that you contact the appropriate authorities in your Federal, State, and Local, as well as an attorney. A commercial MA school isn't a turnkey business, and many of what I list in this post might not be required per Federal, State, and Local laws and regulations. That's why I'm stating that it's best to get all of your ducks in a row before the ducks get knocked into the dirt. You'll need a General Business License; $50 to $100 fee in most states. You will need to select Education business structure among the sole propriety, a partner, a corporation, or an LLC (Limited Liability Company). A Tax License. However, most states require businesses to have a Tax License. Fees vary by the state anywhere from $12 to $50 per location. Most states require business owners to collect sales tax when selling taxable items or taxable services. If you your MA school us located in Oregon, there's no sales tax whatsoever. However, this license can be tricky because you may have to apply for multiple sales tax licenses across multiple states to avoid penalties. A DBA (Doing Business As) Certificate; most states fee is $99. So, when I opened my Kyuodan Dojo, I had to apply for a DBA Certificate. I mean, while I'm a person, the business is not a person, so my dojo needed a DBA in order to operate. A Sellers Permit, also called a State ID; most states fee is $10 to $100. Can't sell any MA related merchandise without the proper permit. If you're not selling anything, then you might not need a Sellers Permit. However, if you want to sell or buy Wholesale, then you'll need said permit. A Federal AND State EIN (Employer Identification Number); cost is $29. A business needs an EIN in order to pay employees and to file business tax returns. Pretty much all of these need to be renewed annually, and they also need to be displayed in plain sight so that the customers and/or the authorities can view them at their discretion. Again, speak to an attorney. Imho, anything you do and/or don't do can put you and/or your MA school in some serious hot water. Dealing with the public can be dicey. Anything you do that's wrong, will get someone's attention quickly. Be an ethical and integrity business all of the time, that way, you can keep you head above water; a business and person can be sued for anything. You don't want to take checks, then put sign(s) up wherever necessary. Signage takes the guess work out for the customers, but customers will challenge each and every sign. You want ALL SALES FINAL, then put some signs up in plain view. You want tuition paid by a certain time? Signs!! Don't forget to add the words...NO EXCEPTIONS!! Don't be abusive to your Student Body in any shape, way, and/or form...NO EXCEPTIONS!! Visit a attorney, many offer free consultation. You already know that you need Public Liability insurance. Things happen to your students, third party property, your employees, and yourself. There's several insurance companies that do MA school insurance. Just like car insurance, you're going to have to call around to get quotes and this and that. Policies and costs vary. If you're teaching at home, and you've these questions to ask, I'd find some commercial space. That's me. Wastelander runs his school from his home in Arizona, so perhaps, he's the person to ask these questions. Good luck, Himokiri Karate. Solid post!! With my previous post, I only listed the most common required permits and licenses for a commercial business. Some other permits and licenses that you might also need... *Zoning and Building Permit *Property Use Permit *Certification of Occupancy *Professional License *Fire and Police Department Permit *Withholding Tax Registration With my dojo, a City Inspector visit was required first before I could open the doors of my dojo. The City Inspector checked EVERYTHING. Everything from the sink to the electric outlets to anything attached to my dojo on the inside and the outside. My dojo had to meet every city code before I opened the doors. Worse code violation I ever had was to have a plumber install a pea-trap for the bathroom sinks. Once the City Inspector was satisfied, he handed me the copy of the inspection, which then I took to the necessary authority to complete my permits, certificates, and licenses. Stand up for yourself and your business but if you make the city upset at you and/or your business, heavy fines can be levied. My brother owns a very successful auto repair shop in CA, and the city his business is in, him and the city have been at war for sometimes. Some battles are worth the fight, and others aren't. Being in business is quite rewarding but at the same time, owning a business has its drawbacks from time to time; part of the fun. I've only been a commercial dojo and retailer; that's the only job I've ever had. This has been my experience. The following is for those MA schools that are wanting to open a commercial one. No matter what I might suggest in this post, I strongly advice that you contact the appropriate authorities in your Federal, State, and Local, as well as an attorney. A commercial MA school isn't a turnkey business, and many of what I list in this post might not be required per Federal, State, and Local laws and regulations. That's why I'm stating that it's best to get all of your ducks in a row before the ducks get knocked into the dirt. You'll need a General Business License; $50 to $100 fee in most states. You will need to select Education business structure among the sole propriety, a partner, a corporation, or an LLC (Limited Liability Company). A Tax License. However, most states require businesses to have a Tax License. Fees vary by the state anywhere from $12 to $50 per location. Most states require business owners to collect sales tax when selling taxable items or taxable services. If you your MA school us located in Oregon, there's no sales tax whatsoever. However, this license can be tricky because you may have to apply for multiple sales tax licenses across multiple states to avoid penalties. A DBA (Doing Business As) Certificate; most states fee is $99. So, when I opened my Kyuodan Dojo, I had to apply for a DBA Certificate. I mean, while I'm a person, the business is not a person, so my dojo needed a DBA in order to operate. A Sellers Permit, also called a State ID; most states fee is $10 to $100. Can't sell any MA related merchandise without the proper permit. If you're not selling anything, then you might not need a Sellers Permit. However, if you want to sell or buy Wholesale, then you'll need said permit. A Federal AND State EIN (Employer Identification Number); cost is $29. A business needs an EIN in order to pay employees and to file business tax returns. Pretty much all of these need to be renewed annually, and they also need to be displayed in plain sight so that the customers and/or the authorities can view them at their discretion. Again, speak to an attorney. Imho, anything you do and/or don't do can put you and/or your MA school in some serious hot water. Dealing with the public can be dicey. Anything you do that's wrong, will get someone's attention quickly. Be an ethical and integrity business all of the time, that way, you can keep you head above water; a business and person can be sued for anything. You don't want to take checks, then put sign(s) up wherever necessary. Signage takes the guess work out for the customers, but customers will challenge each and every sign. You want ALL SALES FINAL, then put some signs up in plain view. You want tuition paid by a certain time? Signs!! Don't forget to add the words...NO EXCEPTIONS!! Don't be abusive to your Student Body in any shape, way, and/or form...NO EXCEPTIONS!! Visit a attorney, many offer free consultation. You already know that you need Public Liability insurance. Things happen to your students, third party property, your employees, and yourself. There's several insurance companies that do MA school insurance. Just like car insurance, you're going to have to call around to get quotes and this and that. Policies and costs vary. If you're teaching at home, and you've these questions to ask, I'd find some commercial space. That's me. Wastelander runs his school from his home in Arizona, so perhaps, he's the person to ask these questions. Good luck, Himokiri Karate. Thank you sensei8/Bob. I checked and in Canada our LLC is BIN or Business incorporation number as the alternate method. I am taking everything you said and finding the Canadian version. Thanks again, your post has been very helpful. I am also talking to a bank that works with a company that helps people with the paper work for starting a business.
