Licenses and Taxes
This subject isn't nearly as exciting as surveillance or undercover work, but it may be even more important. Without compliance with local, state, and federal requirements, you won't operate any business for long. Protect your investment and your future by obtaining all required licenses and permits. Most states have business license divisions, so check out the Small Bus-ness Administration's (SBA) Web site for links to business licenses nation-wide at
Compliance is also important as a barometer of integrity. If you're trust-worthy with small things, the perception is that you can be trusted with large ones. There mustn't be a hint of illegal or improper behavior attached to you or your firm, and it's both improper and illegal to operate without a license and without paying taxes. If you don't think this is important, you need to take inventory of your ethics. Besides, information about non-compliance gets around. See Chapter 3 for more information concerning ethics.
As a private investigator, you are a keeper of secrets. Regardless of your skills or experience, you sell something more than services. You sell your reputation. Keep it sparkling so that clients know they can trust you. When faced with temptations to cross the line of good ethical behavior, don't do it; next time, it'll be easier to stay on the right side of that line.
If you're not good with paperwork or really hate doing it, hire someone to do it for you. The tax authorities are powerful. Even Al Capone was finally taken down by the IRS when law enforcement couldn't make charges for his more violent crimes stick. See Chapter 2 for information concerning each state's regulations for business licenses.
