Please note I wrote this in May 2001. Facts may have changed.
I did some researching lately on the requirements of self-employed status in San Diego, California (laws may be different elsewhere, of course!), and I found out a few things that I thought you might like to know. Some of these facts you probably already knew, and some may surprise you. First of all, did you know that every self-employed person doing business in the city of San Diego is required by law to own a Business Tax Certificate (BTC)? Yes, they haven’t done a very good job at getting the word out about this one, and I’ve never heard of anyone enforcing it, but apparently, anyone could walk up to you while you’re doing your freelance work and demand to see your BTC. The good news is that this BTC (formerly known as a Business License—ah, we’ve at least heard that term before, eh?) typically costs only $46 a year. You may find out all about the BTC, and download the necessary application forms in Adobe Portable Document Format (PDF), at http://www.sandiego.gov/treasurer/btax.shtml
Second, some of us have had, at one time or another over the past several years, certain agencies or individuals tell us that, in order for us to claim independent contractor status, we were required by law to have to have a fictitious business name, incorporated status, a FEIN (Federal Employer ID Number), Worker’s Compensation Insurance, California State Disability Insurance, malpractice (professional liability) insurance, etc. Here is what I found out, by making several phone calls to local and state agencies and by looking up information on government web sites, one of which was (ref #1) http://www.sandiego.gov/economic-development/business/starting/tenkeysteps.shtml: (more…)