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markomus's Avatar
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18-Sep-2007, 04:33 PM #1
Legal Question
I'm a small business owner of a computer repair service (out of my house; just started. Sound familiar to any of you? ). I'm in the beginning stages of possibly landing my first "big" account (the client is a fitness center considering buying a maximum of five PC's to replace their dinosaurs). I'm planning to build their PC's from scratch.

My question is two-fold:

(1) Must I get them FCC certified?
(2) Must I obtain an Electronics Sales Permit?

A side issue I perceive arising might be regarding whether I should build from scratch or not. While I'm open to that discussion, I still need the best answers you all can give me in regard to the above.

Thanks and blessings!
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JohnWill's Avatar
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18-Sep-2007, 07:48 PM #2
Technically, you do need to have FCC certification, since you're selling them. Also, the "Electronics Sales Permit" is a foreign concept to me. I have a sales tax license for my state for my business. I don't sell home-built systems for the fact that FCC certification would be about impossible to obtain. I know tons of people that do, I just choose not to fight that dragon if it ever rears it's head.
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markomus's Avatar
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18-Sep-2007, 09:19 PM #3
Grrrr...grumble grumble grumble....

Nevertheless, thank you for saving me a possible headache later. I want to conduct my business totally clean.
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18-Sep-2007, 09:22 PM #4
Next step: Loop holes.

Could I have them buy all the parts, have them delivered to their address, then I take them, assemble them for a fee and install them? I would no longer be selling the computers (or the parts), only assembling them. Or did the guberment already think of that?
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19-Sep-2007, 10:21 AM #5
The only way I see this working is if they actually buy the parts, and you come in as a "hired gun" and assemble the systems. The real issue here is if those systems ever cause a fire or create interference that attracts attention. Then the question will be asked about assembly.
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19-Sep-2007, 07:14 PM #6
You really should have insurance cover also, but the US being quite "litigatious" you probably already do.

PL (Professional Liability) is where you accidentally damage something, PI (Professional Indemnity) is where you give technical advice that ends up costing them money.

PL is cheap, PI is expensive. I am in a different line of work (but work from home as well) and have to have both. I could buy a small car each year for the cost.

In NZ you would also need to have an appropriate electrical qualification / registration to assemble, just enough to cover safety testing issues of any assembly/repair done "for hire or reward". Unsure what your laws are in that regard.
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19-Sep-2007, 07:19 PM #7
If you follow the letter of the law in the US, you couldn't have a small business.
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21-Sep-2007, 05:05 PM #8
In NZ, the way to get a smal business is to buy a large business and wait 6 months..
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22-Sep-2007, 02:59 PM #9
Does this business know you are considering building the computers??

I personally would never go that route as a business owner unless I was going to stipulate the parts to be used. Plus I would feel more comfortable buying something brand name so there is a fall back in the event I had a falling out with the person building and installing the computers. Just my two cents worth as a business owner
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24-Sep-2007, 02:22 PM #10
I found out I at least have to have a seller's permit. Obtained it Friday.

I also need to register with the California Bureau of Electronics and Appliance Repair (in the works).

As for the rest of it, I have no idea. I have an appointment scheduled with a member of our local chapter of SCORE (business volunteers who help out the little guy/newbie). I'm sure I've missed a lot of details. I don't even know how to "keep books." I don't even know where to go to buy the "books." I've always heard about the "books."
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markomus's Avatar
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24-Sep-2007, 02:23 PM #11
Quote:
Originally Posted by wacor
Does this business know you are considering building the computers??

I personally would never go that route as a business owner unless I was going to stipulate the parts to be used. Plus I would feel more comfortable buying something brand name so there is a fall back in the event I had a falling out with the person building and installing the computers. Just my two cents worth as a business owner
They know. The number two man is a personal friend of mine, so I'm taking this step at a time so I don't promise too much. Thus the legal questions.
markomus's Avatar
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24-Sep-2007, 02:25 PM #12
Quote:
Originally Posted by kiwiguy
You really should have insurance cover also, but the US being quite "litigatious" you probably already do.

PL (Professional Liability) is where you accidentally damage something, PI (Professional Indemnity) is where you give technical advice that ends up costing them money.

PL is cheap, PI is expensive. I am in a different line of work (but work from home as well) and have to have both. I could buy a small car each year for the cost.

In NZ you would also need to have an appropriate electrical qualification / registration to assemble, just enough to cover safety testing issues of any assembly/repair done "for hire or reward". Unsure what your laws are in that regard.
Good questions. I'll have to pose those to my adviser. I think that last one would be what the CA BEAR is meant to meet.
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