Is it legal for me to bill clients and her to write checks to us without a business license? More importantly, if she does have the license, she hasn't paid myself or another tutor (it's a tutoring agency) for our work this year. If she ends up paying me in January that's fine, but is it legal since work was done in the 2014 year? Basically, am I going to get in legal trouble for her mistakes, just because I'm doing a lot of the book keeping voluntarily (not technically an employee)?
Janet Spiro MartinFranchise LawyerMission Viejo, CA ·
Your question is a bit unclear in what capacity YOU are billing her clients; you are one of the tutors but not an employee so how are you representing your self....as part of the franchisee company when you are not?
While it is fine for you to do some bookkeeping services as an independent contractor, rather than an employee, you must meet the independent contractor requirements.
The owner can certainly pay you in January for work you did in December, unless that goes against the arrangement you two have but it is not illegal.
As for not having a "business license" this is something that is not a requirement for most counties or cities, you just have to check with your city and county if one is required. and if it is, this is likely a simple application and fee and should be applied for by her immediately. I just googled Columbus GA business License and the link is below for your review; I did not see tutor business as one of the businesses requiring a license but you can call them and ask specifically. If a license is required, technically she is in violation for running the business before getting a license. But generally this is not a big deal, just need to pay the license fee retroactively, maybe a small fine. Why she hasn't gotten it is a good question since it is a simple administrative task, unlike more involved tasks like getting her business location, filing taxes, etc. If you are intended to be a partner in the business you needs to get all that straightened out and documented. I am a franchise attorney and you posted the question under franchising but it is really not related to franchise laws, other than she is likely in violation of her franchise agreement if she needs a local business license and doesn't have one. Otherwise, it doesn't sound like you are doing things that will get you in trouble, or her, but sounds like you or she needs a business strategy consultation to be sure.
You should contact your local employment development department and run this scenario by them, over the phone. You don't have to give specifics, like identities, etc., just the basic picture of what has been going on. They should be able to advise you appropriately.
Good luck,
Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Attorney & Franchise Expert
Director of Operations - Mr. Franchise
FRANCHISE FOUNDATIONS APC
Matthew J. KreutzerFranchise LawyerLas Vegas, NV ·
I agree with my colleagues. This really is a question that your local city or county official should be able to help you with. Sometimes, business licenses are required but that is not the case in every city/county/state. Good luck!
