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Old 07-17-2009, 01:32 AM
bellinoracing's Avatar
bellinoracing bellinoracing is offline
Join Date: Jun 2009
Posts: 58
Question Looking at starting a fabrication business, Can I legally do that out of my house?

Well things at work are slowing down and I am looking for a way to earn a little extra cash. I built some accessories for my dual sport bike and got a lot of compliments on them and some cash offers so I am thinking I should build some extras to sell. I have done this in the past with some decent luck, but I was never an official tax paying business. I will probably just be mail order only and just sell on sites like ebay and some others. My question is if was to become an official business would I get into any kind of trouble doing this kind of work out of my garage at home? Or do I need to find a commercially zoned shop to work out of?

If things take off the first thing I would like to do is quit using sites like ebay and start my own website. Would that change things in anyway for me as far as working out of my house? If it makes any difference I live in Colorado. Sorry if this is a stupid question but I know nothing about running a business. I am thinking about taking some business classes but they wont start for another couple months. So thanks for any comments and if anybody knows any other considerations I should be taking I would love to hear them.

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Old 07-17-2009, 01:47 AM
Bonehead's Avatar
Bonehead Bonehead is offline
Master Fabricator
Join Date: Jan 2008
Location: Colorado
Posts: 1,020
Depends on where in Colorado. Usually it is the city or county that may give you a hard time. Usually zoning for light industrial is what they are looking for. It also depends on how big you look to them. If UPS shows up every day, and the traffic increases because of you, they may take notice. Another point is insurance. Your homeowners policy probably will not cover your house if it burns down because you had a business in the garage.

Last edited by Bonehead; 07-17-2009 at 10:21 AM.
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Old 07-17-2009, 02:00 AM
mikefrombc's Avatar
mikefrombc mikefrombc is offline
Master Fabricator
Join Date: Oct 2008
Location: Whonnock BC CANADA
Posts: 1,107
it would depend on your bylaws i can run a machineshop from my property , i,m in a rural area , i can,t employ anyone out side of my family , i forget the name they use for it at the city .
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Old 07-17-2009, 03:36 AM
FrogDog's Avatar
FrogDog FrogDog is offline
Master Fabricator
Join Date: Dec 2007
Location: Maple Ridge, B.C. Canada
Posts: 3,152
For some reason this name sounds familier... anyway.. yes you can have a biz in or at your home.. depending on what your doing of course..

Needle point making dollies, no prob.. bending tube, machining, breaking, no prob,.. as soon as you spark a spark such as flame, plasma, welding, that may become a problem.. Like Bonehead and Mike said, all good issues..

Having a website is great.. (I have one).. but it does not promote me unless I promote it... so if I advertize I only do so if it's linked to the home or specific page, item in question...

As far as legit or CIF goes, depends on your output and demand, hobby or production.. we all do cash no matter what.. but as soon as the tax man comes in to play you need to be wise...

I am a proprietor, meaning I'm responsable for my own destiny and trust my own judgment .. being LTD. means you don't trust others and leave the personal shit out of it, being Corp. means don't trust others but only screw the issue at hand...

Personally I won't pay for the latter 2, the government takes enough...

Just a FrogDog opinion and thanx for the opportunity....

'rz Bro.... All the best

'Dog' is Never Wrong, Only Mistakin'
FrogDog FabWorx
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Old 07-17-2009, 10:20 AM
Defender Chassis's Avatar
Defender Chassis Defender Chassis is offline
Master Fabricator
Join Date: Nov 2006
Location: Mid-Ohio Valley
Posts: 412
I was in your boat about two years ago. I wanted to offset some racing costs so I "formally" started a business. If you are in the city you may have to pay B&O taxes. At least thats the way my city is. It is actually very small. I think I pay $0.009 on the dollar. The city will tell you if you can do what you want where you live. If your not in a city then your probably ok. Depends on whether your county has a zoning board. Its hard for me to say because its so different around the country. Just talk to whatever local government has juristiction. You may even get a tax abatement for starting a new business. I got one for 2 years. Just the city B&O tax though. I found the state and city were very helpful. I had to get a city and state business license. You will also need to get a federal employee ID number (FEN). Its really easy. Look online for the form. It will allow you to get a sales tax number so you can buy supplies tax free. Be warned though, its only to be bought w/o tax if it is to be resold. Steel to be cut and welded - Tax Free, Blade for the saw - must pay tax. I hope I helped. Good luck.

Saw on the news the other night that something like 50% of the Fortune 500 Companies were started DURING and economic downturn. Seems illogical but I guess necessity is the mother of invention.

BTW, the second year of my business I dobled my volume. This year I have already tripled it over last and it is only July. I am not talking big money but if the pattern continues you never know.
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