On the Road Again

When you travel for work and earn income in other localities, there are a few key items to keep in mind.  Like our canine friends who can travel from state to state to earn titles that may have monetary rewards, we all need to be aware of our financial and legal responsibilities.

Licensed professionals are savvy enough to know where their license allows them to practice and where it does not.  Many industries have arrangements nationally or between states that may allow for a licensed professional to gain licensing in another state by making an application to the governing body and paying a fee.  Other states may require a test be taken or certain parts of a test.  

For instance, if a state is subject to hurricanes or earthquakes or fierce wildfires, there may be a state requirement to prove your knowledge of how your services need to be applied to address these specific types of weather phenomena.   You will see this in professions like architecture or engineering, for example.  Always refer to your industry’s governing body and the department of education for each state as they are traditionally tasked with managing licensing requirements.

Another item to keep in mind is an actual business license.  This will approve you to do business in a state or municipality, separate from professional licensing.  And this applies to every type of business that decides to embark on interstate trade.  The fees are usually nominal but due annually.  A quick internet search about doing business in any given area should yield requirements around this topic.

Lastly, and certainly quite importantly, engage your accountant.  Depending on the hours you spend outside of your headquarter’s location and the nature of the work being performed, your accountant may recommend you keep a journal of dates and time spent in other areas.  Your accountant can advise on filing income tax requirements for those other areas you have landed projects in or if your meetings do not qualify for that treatment.  You may need to work with accountants in each location and they can coordinate among themselves.

You have likely worked hard to achieve business outside your home base. Make sure you do not face unwanted or avoidable penalties by ensuring you have the proper licenses and applications in place to conduct business elsewhere.  No one needs surprise fines and nearly all here can be avoided with the proper research and planning.

Be well.