Do you own a jet ski and need a business license to use it for commercial purpose? If YES, here are the requirements plus cost of getting a jet ski license. Jet skis are a very common feature of an American beach scene. According to industry experts, the global water sports market will grow steadily with a CAGR of more than 5% by 2022. The increasing emphasis on water sports by the governments of various countries has resulted in the rise in popularity of jet skis.
In addition, several countries have exclusive regulatory bodies for water sports that focus on promoting and organizing the sports in the country as well as globally. Such factors will increase participation in water sports, which will consequently drive the growth of the market in the coming years. Water sports are quite popular in the united states of America.
This can be partly attributed to the increased awareness of healthy lifestyle and the increase in water sports enthusiasts. Even though starting a jet ski business can be quite profitable, however the financial dimension of the business can spell disaster for an entrepreneur, especially one that has unrealistic profit expectations. In order to have a shot at being successful, you will need to have at least five to six jet skis in your fleet.
You’ll also need a beachfront rental location costing thousands of dollars per season and the number of jet skis you can rent will be limited by the amount of frontage you lease. When you include the cost of PFDs, licenses, insurance, maintenance equipment and other startup expenses, the bottom line is that you’ll need at least $80k to get your operation off the ground. And if your location isn’t a year-round travel destination, you’ll need to do enough business in five months to cover a year’s worth of costs.
What Licenses Do You Need to Operate a Jet Ski for Commercial Purposes?
A Jet Ski business requires certain permissions and licenses before you can be allowed to fully operate. These licensing requirements however, vary from state to state. As such, it is up to you to check the licensing issues first.
1. Business License
A business license gives you the authority to operate in a particular jurisdiction. In order to get a business license, you will have to go through your city and state government. The easiest way to start would be to search your state’s name plus the term “business license” in an online search engine. This will lead you to your state government’s website where the application and its procedures can be found.
You can also check out the US Small Business Administration’s website to see the rules for receiving a business license that are specific to your city. A business license will cost not less than $50 to get it registered. It goes without say that the cost of the license will differ due to the location, and expected profit. This license does need to be renewed periodically.
2. Employer Identification Number
If you intend to employ staff for your business, then you will need this license. An employer identification number (EIN) basically tells the federal government that you are en employer of labor and it provides you with a tax ID. An EIN allows you to hire employees and to legally have them on your payroll. Your state will give you an employer identification number that is separate from your federal number which helps legitimize your business’s standing.
In order to get an EIN, you will need to visit the IRS website and follow the application procedures that are listed there. This can take quite some time, mainly because the IRS only issues one employer identification number per responsible party per day. Be sure to apply as early as possible. You can also fax, mail, or call the IRS to submit your application. Getting employer identification number is totally free of charge.
3. Sales tax license
A sales tax license is a license that is issued by the state that allows you to legally collect sales tax and remit it to the issuing state. All states in the America apart from Delaware, Hawaii, Montana, New Hampshire and Oregon have sales tax. The easiest way to get a sales tax license is to visit the state government website of the state you do business in. You can easily find this through a Google search.