Hey guys, I'm in need of some business advice here. After many years of performing in my area, my city is coming after me for not having a Mercantile License. The lady in the tax office I spoke to told me I need one because I "put on events." I told her I do NOT put on events. I perform at other people's events, usually in someone's private home as I'm not currently doing a restaurant gig, but did at one of the most prominent places in town for 7 years. One friend tells me that this may just be a scare tactic as my city is completely bankrupt due to bad business dealings and a mayor and staff that just can't get the job done.

Some are telling me such a license is only needed if you actually have a PLACE of business. I don't. It's only $40 a year for the license, but my real worry is that after many years, it may all come out now that I've been doing this under the table. They say I may have to pay back fees. I will be meeting with an attorney on Monday, but I wanted to check with other performers and see what their opinions are.

Much obliged to whatever advice you guys can offer.

"Mercantile License" sounds like it should relate to merchants and not scoundrels such as yourself. However, the applicable statutes etc. for your state and municipality will set out what is meant by the term in your situation.

Where I am from anyone operating a business (except professionals) must obtain an annual business license, even if they operate out of their home, trailer or tent.

You might argue that magic is the second oldest profession, and thus you, as a professional, along with your fellow professionals (lawyers, ministers, surveyors and prostitutes) are therefore exempt. You will probably lose that argument, but at least you can relish your moment in the sun knowing that history and common sense are on your side.

Your concerns about the possibility of being hit with back taxes, plus (gasp!) penalties and interest, are not unfounded. May all that is good, decent, and "American" help you. On the other hand, maybe it is the "American" part that is going to nail you. Naaaa, what's gonna nail you is universal. It's called the King vs the serf.

Good luck pilgrim.

Your doing the right thing consulting a lawyer. Without knowing how the law is worded, no on can really give you any advice.

Pepka
Is a Merchantile License another name for a tax number? We both live in Pennsylvania, and you'de think that we would use the same treminology. I have no idea what a mecrchantile lisense, but I definitely have some advise on a tax number.

Al,
The Mercantile license seems to basically be a license to conduct business at a location. Since I don't have a location, that's my argument. It would be different if I were selling tickets for people to come in my home and watch a show.

What did the atty say?