Dan wrote: “I am an inventor who sells or licenses my intellectual property or patent rights to third parties. I am the only person in my business and work from my house.”
Hi Dan, Willow Enterprises is off to a smart start by getting the paperwork right first. Licensing lets an inventor earn from a patent without building a factory, so the garage workshop can stay a workshop. Below we walk through the three things every new business in Virginia sorts out (structure, tax IDs, and licenses) and then sum it all up.
Licensing patent rights from your home in Union Hall doesn't involve sales tax in Virginia, since royalties and patent sales aren't retail sales of goods. Forming an LLC can protect your personal assets if a licensee or competitor ever sues over the patent, and it also makes contracts look more professional. Keep each license agreement clear on territory, duration and royalties, and have an IP attorney review the first few. Willow Enterprises should be registered as a Virginia assumed name if you don't form an LLC under it, and with no employees, there's no payroll to set up. Royalty income will still show up on your Virginia income return, so track each check as it arrives.
By the numbers: Banks, insurers, and tax forms will ask for your industry code. For an invention licensing business it is NAICS 533110 (Lessors of Nonfinancial Intangible Assets). That makes 4 items on your list.
Tip: Have a patent attorney review every licensing contract before you sign it.
To recap: Willow Enterprises in Union Hall, VA needs an LLC, a DBA, an EIN, and a business license. Get those in place and you can spend your time on customers instead of paperwork.
BusinessNameUSA can prepare and file these registrations for you: start your order.
You can choose to be a(n) Inventor :
Union Hall Business Tax Registration ( Business License) All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.
Q: What do I need to start a business as an independent inventor?
A: An independent inventor doing research and development work needs a simple but solid structure: 1. LLC or corporation 2. Federal tax ID number (EIN) 3. Patent strategy with a qualified professional 4. Lab or workshop safety compliance 5. Local business license