Several types of businesses don’t require licenses or permits. In fact, most sole proprietorships and independent contractor positions don’t require licensing or permits unless they involve specific types of services. While these businesses may not require licensing or permits, an argument might be made, that optional licensing and permitting may offer certain advantages.
At least 7 types of businesses do not require numerous licenses and permits. These businesses are:
Freelance writers are considered to be independent contractors. There are usually no licensing requirements for freelance writers, and most freelance writers report their earnings under their own social security numbers. Freelance writers who work through agencies and organizations file a w-9 with each company they work for.
Web design is another type of business that has little or no licensing requirements. Many web designers work from home as independent contractors. They also usually file a w-9, if they work through an organization and report earnings each year to the IRS. Some web designers do custom work, while other designers offer pre-made templates for sale.
While large operations require USDA licensing, most hobby breeders are exempt from such requirements if they own five breeding female dogs or less. Additionally, breeders don’t have to concentrate on dogs, many hobby breeders breed frogs, fishes, gerbils, hamsters, and sugar gliders. On average, many breeders earn about $800-$900. In some cases, dog breeders can earn as much as $24,000.00 yearly with only five breeding females, if the concentrate on rare or exotic dog breeds.
Many business owners are making a killing off of vintage and handmade items on major craft sites. It’s not expensive to run these shops; crafters pay by the listing. Popular shops can often become full time businesses without additional overheard necessitated by a brick and mortar building. Crafters often paint, sew, knit, or release zines on these sites and many customers are willing to pay large sums of money to buy an original piece.
Used Book Dealer
Online marketplaces make it possible for everyone to get into the used book business. College students can happily resell textbooks while diligent dealers can sell numerous titles to make ends meet. Online marketplaces provide dealers with an unlimited amount of potential customers looking for a good deal. Dealers who price their books reasonably can expect to supplement their income, and in some cases generate enough cash flow to quit their day jobs.
Independent Business Owner/Consultant
Many people have sought income generating opportunities through popular sources such as Avon and Mary Kay. For nearly every product imaginable, there is a distributor that offers individuals the opportunity to make cash by selling to friends and colleagues. It takes a special talent to make it in this type of business, but the overhear is low, and the products are already well-established. Most of the available products are of good quality, which is a major selling point for consultants.
Individuals capable of scripting and developing apps are in high demand. Applications designed for use by iPhones and Android devices are selling like hotcakes. Talented software developers can earn a great deal if they develop a stable and useful application. Additionally, many sole proprietors develop multiple apps and expand their earnings exponentially. Some app developers hire themselves out to develop applications for different businesses. These app developers are often very highly paid. The possibilities for app developers are almost endless.
While there are many businesses that don’t require licensing or permits, it may be advantageous for business owners to obtain permits before doing business. In some cases, certain deductions and credits can only be taken by properly licensed businesses. Business owners considering starting a business should always perform due diligence and ensure that the business will be operating in a manner that won’t lead to any licensing or permit violations.