I know the current business I work for does not have a business license, even though she does have an accountant (out of state) that she sends all her receipts to. I know she gets back a significant amount in refunds every year ($10,000+) from her business. What do I need to do to ensure that my business is 100% legal? I don't have resources up here where I've moved to and I'm not sure who to call. We moved from a state with no state or local taxes to a city that has a state income tax AND a city income tax.

Not all states require a business license. The short version is to research local requirements.

That being said, , check out your secretary of state's website and your city's website for business regulations. You may also wish to visit the Small Business Administration's website (www.SBA.gov). You should also go to the IRS website (www.irs.gov) and check out the small business section.

Another important issue is setting up/maintaining good accounting records, which can then be sent to your accountant at year-end to properly file your taxes.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

I agree with Lily, check with the gov't offices that oversee your city/state and consider hiring an accountant. We finally did, even though I was nervous about the expense of it - turns out, he pays for himself every year twice over and I have the peace of mind knowing that my taxes are filed correctly.

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