At Tom Vignali CPA, Inc., we recently had the opportunity to discuss various issues with a business that was primarily engaged in landscape maintenance services. The owner indicated that they were expanding their services into carpentry and landscape construction, specifically interior remodeling and land grading with rain gardens and installation of retaining walls.
Comply or defy?
We inquired if they had obtained the necessary licenses, permits, and qualified workers for this type of work. Their response was shocking as they indicated that their employees knew how to “do all of this stuff,” and that it was just an expansion of their existing services. We advised them that this was not a simple expansion of their landscaping maintenance services, and that state and local government agencies required extensive licensing, permitting, and compliance with various regulations in order to perform these types of services.
For example, general contractors, excavators, electricians, and plumbers are subject to state licensing boards, and there is a set of standards, requirements, and regulations that apply to this type of work. Additionally, local municipalities have their own set of requirements, regulations, and required permits for this type of work. Furthermore, there are general liability and workers’ compensation insurance requirements that need to be adhered to.
Rules, regulations, and more
What this business owner discovered was that for each type of new business service he was expanding into, there was a litany of policies, rules, regulations, licenses, and permits required in order to be compliant with state and local laws.
We referred him to the RI Secretary of State’s web site where there is a section that identifies many of these requirements based on the type of business you are engaged in. This resource site can be found at: http://sos.ri.gov/divisions/business-portal/business-basics
You can also find a list of resources for specific types of business requirements at: https://www.ri.gov/SOS/businessassistant/wizard/business_categories
Think twice before going rogue
Pretty much every type of business entity is subject to a set of rules and regulations. Just because the business is capable of performing the service doesn’t mean that they are allowed (by law) to provide the service. It is incumbent upon the business to maintain compliance with all applicable rules and regulations.
If you would like to further discuss this issue or any other accounting issues, don’t hesitate to contact us at: Tom Vignali CPA, Inc.
Contact Us:
Thomas W. Vignali CPA Inc.
118 Point Judith Road
Narragansett, RI 02882
T: (401) 415-0798
tom@tomvignalicpa.com
www.tomvignalicpa.com
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