5 Perfect 'Spare-Time' Online Businesses

With all the doom and gloom news about the economy, there's never been a better time to make an extra paycheck online with a minimal amount of time and effort.

If you have an internet connection, you can get started on the road to having the internet pay for your mortgage, car payment, kids' college tuition, or even that special vacation you've wanted. Now, don't worry that you have to be a tech whiz to start a business online--I'm a complete techno-dunce.

A perfect part-time business would have to be very easy to start, require little time and money and no technical expertise, be easy to maintain with just a few hours a week and have a proven track record with a high probability of success.

There's actually one other important criteria--it has to be perfect for you! Experience has taught me that it's different strokes for different folks, and there is no "one size fits all" perfect business. You're much more likely to be successful if you do something you find fun and interesting.

With that in mind, here are five of the best ways to make extra cash moonlighting on the internet:

1. Information marketing: We're in the information age, and the internet provides you with the ideal medium to exchange know-how for money. Do you know the best fishing holes? How to play guitar? The secrets to a successful marriage? A recipe for moist and delicious brownies? A trick for saving gas?

Think about your career, your hobbies and your interests. Virtually anything you know can be turned into extra cash. And don't worry if you think you're not an expert--as long as you know more than the average person on the topic, that information is valuable.

However, if you don't believe you know anything that others would pay for (highly unlikely), you can take someone else's know-how and make money that way! It could be as easy as interviewing a veterinarian to help you create a dog-training product.

Ninety-two percent of people go online looking for information, and you could be one of the many people cashing in on selling it.

2. eBay: One of the largest online marketplaces makes it a piece of cake to get your own business going. You can open an account and start making money within hours on eBay!

While I dislike that whole "sell your garbage on eBay" thing, there is some validity to it as many people get their start on eBay by selling items from their garage or attic that pre-eBay would have been thrown out. This approach is fine, but where is the business once you run out of those items? If you want to create an eBay business that doesn't require tons of time and effort, you need to leverage products that can be sold over and over again.

This is one of the reasons I'm not a fan of the "eBay seller for hire" kinds of opportunities, where you sell things on eBay for other people. You get access to stuff people want to sell, but because each item is unique you have to work to list each and every one. There's no leverage there!

Take a look at some of the largest eBay PowerSellers and notice how they specialize in very specific products (iPods, cell phones, dog grooming kits, etc.). This allows them to leverage their efforts. A listing is created once, and money is collected over and over again.

Unlike information marketing, this business requires the handling of physical goods, but even that can be automated, so it shouldn't prevent you from considering this idea.

3. Affiliate marketing: This may possibly be the absolute laziest way to make money because it doesn't require you to have a product, make a sale or ever have any interaction with customers.

This is essentially a "referral" business, or as one of my book contributors likes to call it, "passionate recommendations." Basically, you can get paid a referral commission just for sending people to sites (or vendors) that are set up to pay affiliate fees once a sale is made. The vendor does all the selling, fulfills the purchase and handles any customer service issues--and you just collect your check..not bad!

Some people choose affiliates based on who or what is paying the highest commissions, and that certainly is a viable option. Most people opt to choose products or goods they are passionate about so that the process is much more fun and engaging.

Insurance and credit card companies pay high commissions for referrals that convert to customers ($40 to $150 and up), but the competition is fierce. It may pay well, but is this something you'll enjoy doing for the long haul?

Alternatively, you could take a look at your hobbies and other things you enjoy and see which affiliate programs are a good match. As always, do your research to verify the viability of your market. A good place to look for ideas (and downloadable products just waiting for an affiliate) is ClickBank.com.

4. Blogging: This business is best suited for folks who enjoy communicating about a particular subject. Think of blogs as journals of sorts. Although you can have a personal blog, writing about a particular topic will have a higher chance for financial success.

The range of topics is virtually endless--photography, sports cars, parenting, dieting, star gazing, the latest gadgets, Hollywood gossip--you name it, as there are blogs on just about everything you can imagine. Don't worry about competition. Folks who read one blog are apt to read others on a topic they're passionate about, as long as you have something interesting to say.

Once your blog starts getting traffic, you can make money passively with things like AdSense (Google's ad revenue sharing plan) or actively by doing a little bit of affiliate marketing. You can see both types of moneymaking strategies at SparkleCat.com, which is a blog about a person's cat. What makes it interesting is that it's written from the cat's perspective and often refers to her "human." At the top of the page are Google AdSense ads, and sprinkled throughout are suggestions for things like cat furniture and premium cat food, which are tied to an affiliate program. Pretty cool, no?

5. Yahoo! Store: This business is very similar to eBay in the sense that it's a monster-sized marketplace but more similar to a store in the true sense of the word. Think having your own retail outlet but without the hassles of rent, employees, utilities and all the other expenses of a traditional brick-and-mortar store.

The neat thing is that it can be as hands-on or as hands-off as you want it to be because of companies called drop-shippers, which can do most of the work for you. In fact, you don't even pay for the inventory until you make a sale. How cool is that?

Most people think the hard part of this business is creating your virtual store, but nothing could be further from the truth. Yahoo! has made the templates and wizards so easy that, dare I say, even a caveman can do it!

The best way to ensure your success is to do your homework and research what products people most want to buy. You need to find a niche. Once again, start with things you enjoy. Let's say you love fishing. What products do fishing folks want to buy most? (Or get even more specific, like, what are bass fishermen looking to buy?)

Then the task is to find the right source of those products so you can carry them in your Yahoo! Store. In most cases, you'll be able to pull pictures and product descriptions directly from your sources and plug them right into your store.

As you can see, this business requires a little bit more upfront work, but once it's done it can be maintained with very little regular input on your part.

What Is Business Technology?

Business technology encompasses a wide range of hardware, software and services that keep companies running and enhance operations. Technology plays into every aspect of a business, from accounting to customer communications to product design and development. The rapid forward movement in technology development over the last couple of decades has provided more powerful and less expensive options for companies. Business technology can help small business look bigger than they are and keep them ahead in a competitive marketplace.

Hardware

The most visible sector of small business technology is the hardware--the desktop computers, laptops, printers, monitors, cell phones, projectors, servers, digital cameras, keyboards and "mice" that keep a business going on a daily basis. Laptops, an increasingly popular computer hardware option for business users, are more mobile than ever. Budget-conscious small businesses often purchase consumer hardware rather than enterprise hardware, but many manufacturers offer products designed specifically for small business users.

Software

Software covers everything from the operating system that a computer runs on to image editing programs, accounting software and word processing applications. Most businesses run on either a Windows or Macintosh platform. Macs are particularly popular with entrepreneurs who deal with multimedia and video creation. Most businesses use an office productivity software suite such as Microsoft Office or openoffice.org that includes word processing, presentation and database programs that handle a wide array of common business tasks. Business software also includes more specialized programs such as CAD design tools for architects and recording software for audio engineers.

Related Reading: How to Run a Business Office Using Technology

Internet

The growth of the Internet has marked a sea change in small business technology. Businesses use websites to advertise, provide information, sell products and reach new customers. Software as a Service (SAAS) is software that is delivered in an ongoing fashion over the web rather than through CDs or downloads. Often it is paid for in a monthly or yearly service plan. This can be a more affordable and flexible option for small businesses compared to traditional methods of purchasing and using software.

Specialized Technology

Business technology isn't limited to uses surrounding desktop and laptop computers. Technology also makes a mark with high-tech manufacturing robots, advanced microscopes and other specialized hardware and software. Many tasks that used to be done by hand are now automated and handled by specialized technology tools. For example, an independent machine shop may use computer-aided manufacturing equipment that combines specialized software with machines to create parts to specifications. Innovative small businesses are also working in high-tech industries like nanotechnology and biotechnology and are on the cutting edge of creating new technologies.

Benefits

The smart use of business technology helps small companies stay ahead of the competition by improving communications, making employees more efficient and tapping into effective marketing channels. Small business owners are often pressed for time and wearing many different hats. The use of business tools like accounting software, email, customer relationship management applications and "smart phones" can take some of the burden off entrepreneurs and help them make the most effective use of their time. Up-and-coming generations of workers are accustomed to a world full of technology. Small businesses need to adapt and keep up with new advancements.

NHAI to launch a mobile app soon to catch traffic violators

To check traffic violations, the National Highways Authority of India (NHAI) will soon launch a mobile application on which public can make complaints against those doing rash driving, breaching speed limit or involved in any other similar acts.

"The app will be introduced to promote road safety and proper highway management. It will be integrated with transport registration network," NHAI Chairman Raghav Chandra said today.

"It will be available for citizens by December. With this app, the citizens can even take a photograph of the vehicle which is speeding or violating any traffic rules. At the press of a button a complaint can be registered against that vehicle," he said. 

He was speaking during the inauguration of a conference on 'Road-tech: Role of new technologies' by Assocham.

He further said that all the complaints will get registered in the ledger pertaining to the particular vehicle whereupon the police or transport department can take further action about it.

Highlighting that human interface pertaining to roads requires collection of data and policing, Chandra also said that thehighways body will soon introduce such reforms for better highway network management.

"In the days to come, I hope to be able to introduce reforms to bring about better management, control, policing of our highways network. I feel with more physical intermediation we should be able to bring about something like patrolling to improve the physical management on roads and I think that we will have a significant improvement on road safety," he said.

He said that the NHAI was working towards building up a complete information of data bank of all the highways, known as the Road Asset Management System (RAMS). He added that this system has already been commissioned for 3,000 kilometres (kms) of roads.

"Within the next one year we should have information regarding the entire 1,00,000 kms of highway network on every aspect including the encroachment on both sides, quality of the road, width of the road, width of the right of way, issues concerning with junctions and so on," he added.

The information collected would help to perk up condition of roads, deal with citizens' problems, give alerts, guidance and route traffic and do the entire technological management of all the highways, he further noted.

He also said that the NHAI would strengthen its various institutions that are connected with road safety like the Institute of Highway Engineers, Indian Roads Congress which does the essential standardisation and planning of roads.

"Overall, with these initiatives I think in next one-two years you will be able to see a substantial and significant institutional difference in the management of roads and for bringing in an era of greater safety and citizen comfort on our roads," he stressed.

Partnership 

Definition: A legal form of business operation between two or more individuals who share management and profits. The federal government recognizes several types of partnerships. The two most common are general and limited partnerships. .

If your business will be owned and operated by several individuals, you'll want to take a look at structuring your business as a partnership. Partnerships come in two varieties: general partnerships and limited partnerships. In a general partnership, the partners manage the company and assume responsibility for the partnership's debts and other obligations. A limited partnership has both general and limited partners. The general partners own and operate the business and assume liability for the partnership, while the limited partners serve as investors only; they have no control over the company and are not subject to the same liabilities as the general partners.

Unless you expect to have many passive investors, limited partnerships are generally not the best choice for a new business because of all the required filings and administrative complexities. If you have two or more partners who want to be actively involved, a general partnership would be much easier to form.

One of the major advantages of a partnership is the tax treatment it enjoys. A partnership doesn't pay tax on its income but "passes through" any profits or losses to the individual partners. At tax time, the partnership must file a tax return (Form 1065) that reports its income and loss to the IRS. In addition, each partner reports his or her share of income and loss on Schedule K-1 of Form 1065.

Personal liability is a major concern if you use a general partnership to structure your business. Like sole proprietors, general partners are personally liable for the partnership's obligations and debts. Each general partner can act on behalf of the partnership, take out loans and make decisions that will affect and be binding on all the partners (if the partnership agreement permits). Keep in mind that partnerships are also more expensive to establish than sole proprietorships because they require more legal and accounting services.

If you decide to organize your business as a partnership, be sure you draft a partnership agreement that details how business decisions are made, how disputes are resolved and how to handle a buyout. You'll be glad you have this agreement if for some reason you run into difficulties with one of the partners or if someone wants out of the arrangement.

The agreement should address the purpose of the business and the authority and responsibility of each partner. It's a good idea to consult an attorney experienced with small businesses for help in drafting the agreement. Here are some other issues you'll want the agreement to address:

• How will the ownership interest be shared? It's not necessary, for example, for two owners to equally share ownership and authority. However, if you decide to do it, make sure the proportion is stated clearly in the agreement.
• How will decisions be made? It's a good idea to establish voting rights in case a major disagreement arises. When just two partners own the business 50-50, there's the possibility of a deadlock. To avoid this, some businesses provide in advance for a third partner, a trusted associate who may own only 1 percent of the business but whose vote can break a tie.
• When one partner withdraws, how will the purchase price be determined? One possibility is to agree on a neutral third party, such as your banker or accountant, to find an appraiser to determine the price of the partnership interest.
• If a partner withdraws from the partnership, when will the money be paid? Depending on the partnership agreement, you can agree that the money be paid over three, five or 10 years, with interest. You don't want to be hit with a cash-flow crisis if the entire price has to be paid on the spot on one lump sum.

Business Growth and Development Programme

Business Growth and Development Programme

Designed specifically for the development of owner-managers, the Business Growth Programme helps you create the future you want for your business and for yourself. This programme provides a unique opportunity for you to step back from the day-to-day demands of running your business. By the end of the programme you will have developed a comprehensive and robust strategy and plan for the future. 

KEY BENEFITS

The benefits you achieve from your BGP experience will depend on your particular situation. Typical benefits that past participants have achieved: 

• Faster and more managed growth
• A more valuable business
• A robust and rigorous plan
• More confidence, more focus, more energy
• An exit plan
• Improved profitability
• Greater clarity over their personal goals and drivers
• More effective leadership and improved management skills
• Greater confidence in the future
• Less stress, more time off and more fun!

CORE CONTENT

BGP is the UK’s longest running and most successful programme for the development of owner-managers. It has been running with great success for 25 years and has helped over 1,500 owner managers achieve their business and personal ambitions.

BGP is centred entirely on the reality of your business – your current challenges, your opportunities, your future goals and ambitions. Because of this, the benefits you gain will be unique to you.

Businesses which participate in BGP grow sales and profit more quickly than their peers and grow more quickly after the programme than they did before.

How does it work? 
BGP is built around a core process whereby each individual participant develops their own growth strategy for their own business and a plan to implement that strategy.

To enable this, BGP consists of a simple yet rigorous structure, comprising of three key blocks of strategic thinking: 

• Where are we now?
• Where are we going?
• How do we get there?

Within each of these blocks, we have a particular focus on four themes:

• Markets
• Money and Measures
• Management
• Me

BGP is a modular programme that allows you to continue to run your business while you participate. The main part of the programme runs over 11 weeks. During that time, there are four two-day modules here at Cranfield. In between the modules, you will be working on developing your own strategy for your business and you will be making immediate improvements. Five weeks after the fourth module is Business Plan Review, where you will present your strategy and plans to a panel made up of the BGP team and independent advisors. About six months later we reconvene for Progress Review Day when we review actual progress against your plan. 

Throughout the programme, you will be supported by an experienced BGP counsellor who works with you on a 1-1 basis, and within a small group, to ensure that you get the maximum value from your BGP experience. 

Sole Proprietorship

Definition: A business that legally has no separate existence from its owner. Income and losses are taxed on the individual's personal income tax return. .

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. A sole proprietorship can operate under the name of its owner or it can do business under a fictitious name, such as Nancy's Nail Salon. The fictitious name is simply a trade name--it does not create a legal entity separate from the sole proprietor owner.

The sole proprietorship is a popular business form due to its simplicity, ease of setup, and nominal cost. A sole proprietor need only register his or her name and secure local licenses, and the sole proprietor is ready for business. A distinct disadvantage, however, is that the owner of a sole proprietorship remains personally liable for all the business's debts. So, if a sole proprietor business runs into financial trouble, creditors can bring lawsuits against the business owner. If such suits are successful, the owner will have to pay the business debts with his or her own money.

The owner of a sole proprietorship typically signs contracts in his or her own name, because the sole proprietorship has no separate identity under the law. The sole proprietor owner will typically have customers write checks in the owner's name, even if the business uses a fictitious name. Sole proprietor owners can, and often do, commingle personal and business property and funds, something that partnerships, LLCs and corporations cannot do. Sole proprietorships often have their bank accounts in the name of the owner. Sole proprietors need not observe formalities such as voting and meetings associated with the more complex business forms. Sole proprietorships can bring lawsuits (and can be sued) using the name of the sole proprietor owner. Many businesses begin as sole proprietorships and graduate to more complex business forms as the business develops.

Because a sole proprietorship is indistinguishable from its owner, sole proprietorship taxation is quite simple. The income earned by a sole proprietorship is income earned by its owner. A sole proprietor reports the sole proprietorship income and/or losses and expenses by filling out and filing a Schedule C, along with the standard Form 1040. Your profits and losses are first recorded on a tax form called Schedule C, which is filed along with your 1040. Then the "bottom-line amount" from Schedule C is transferred to your personal tax return. This aspect is attractive because business losses you suffer may offset income earned from other sources.

As a sole proprietor, you must also file a Schedule SE with Form 1040. You use Schedule SE to calculate how much self-employment tax you owe. You need not pay unemployment tax on yourself, although you must pay unemployment tax on any employees of the business. Of course, you won't enjoy unemployment benefits should the business suffer.

Sole proprietors are personally liable for all debts of a sole proprietorship business. Let's examine this more closely because the potential liability can be alarming. Assume that a sole proprietor borrows money to operate but the business loses its major customer, goes out of business, and is unable to repay the loan. The sole proprietor is liable for the amount of the loan, which can potentially consume all her personal assets.

Imagine an even worse scenario: The sole proprietor (or even one her employees) is involved in a business-related accident in which someone is injured or killed. The resulting negligence case can be brought against the sole proprietor owner and against her personal assets, such as her bank account, her retirement accounts, and even her home.

Consider the preceding paragraphs carefully before selecting a sole proprietorship as your business form. Accidents do happen, and businesses go out of business all the time. Any sole proprietorship that suffers such an unfortunate circumstance is likely to quickly become a nightmare for its owner.

If a sole proprietor is wronged by another party, he can bring a lawsuit in his own name. Conversely, if a corporation or LLC is wronged by another party, the entity must bring its claim under the name of the company.

The advantages of a sole proprietorship include:

• Owners can establish a sole proprietorship instantly, easily and inexpensively.
• Sole proprietorships carry little, if any, ongoing formalities.
• A sole proprietor need not pay unemployment tax on himself or herself (although he or she must pay unemployment tax on employees).
• Owners may freely mix business or personal assets.

The disadvantages of a sole proprietorship include:

• Owners are subject to unlimited personal liability for the debts, losses and liabilities of the business.
• Owners cannot raise capital by selling an interest in the business.
• Sole proprietorships rarely survive the death or incapacity of their owners and so do not retain value.

One of the great features of a sole proprietorship is the simplicity of formation. Little more than buying and selling goods or services is needed. In fact, no formal filing or event is required to form a sole proprietorship; it is a status that arises automatically from one's business activity.

Defining Your Business Goals

Setting goals is an integral part of choosing the business that's right for you. After all, if your business doesn't meet your personal goals, you probably won't be happy waking up each morning and trying to make the business a success. Sooner or later, you'll stop putting forth the effort needed to make the concept work. When setting goals, aim for the following qualities:

Specificity. You have a better chance of achieving a goal if it is specific. "Raising capital" isn't a specific goal; "raising $10,000 by July 1" is.

Optimism. Be positive when you set your goals. "Being able to pay the bills" isn't exactly an inspirational goal. "Achieving financial security" phrases your goal in a more positive manner, thus firing up your energy to attain it.

Realism. If you set a goal to earn $100,000 a month when you've never earned that much in a year, that goal is unrealistic. Begin with small steps, such as increasing your monthly income by 25 percent. Once your first goal is met, you can reach for larger ones.

Short and long term. Short-term goals are attainable in a period of weeks to a year. Long-term goals can be for five, 10 or even 20 years; they should be substantially greater than short-term goals but should still be realistic.

There are several factors to consider when setting goals:

Income. Many entrepreneurs go into business to achieve financial security. Consider how much money you want to make during your first year of operation and each year thereafter, up to five years.

Lifestyle. This includes areas such as travel, hours of work, investment of personal assets and geographic location. Are you willing to travel extensively or to move? How many hours are you willing to work? Which assets are you willing to risk?

Type of work. When setting goals for type of work, you need to determine whether you like working outdoors, in an office, with computers, on the phone, with lots of people, with children and so on.

Ego gratification. Face it: Many people go into business to satisfy their egos. Owning a business can be very ego-gratifying, especially if you're in a business that's considered glamorous or exciting. You need to decide how important ego gratification is to you and what business best fills that need.

The most important rule of self-evaluation and goal-setting is honesty. Going into business with your eyes wide open about your strengths and weaknesses, your likes and dislikes and your ultimate goals lets you confront the decisions you'll face with greater confidence and a greater chance of success.

Types of business structures 

Sole Proprietorship

A Sole Proprietorship is one individual or married couple in business alone. Sole proprietorships are the most common form of business structure. This type of business is simple to form and operate, and may enjoy greater flexibility of management, fewer legal controls, and fewer taxes. However, the business owner is personally liable for all debts incurred by the business.

General Partnership

A General Partnership is composed of 2 or more persons (usually not a married couple) who agree to contribute money, labor, or skill to a business. Each partner shares the profits, losses, and management of the business, and each partner is personally and equally liable for debts of the partnership. Formal terms of the partnership are usually contained in a written partnership agreement.

Limited Partnership

A Limited Partnership is composed of one or more general partners and one or more limited partners. The general partners manage the business and share fully in its profits and losses. Limited partners share in the profits of the business, but their losses are limited to the extent of their investment. Limited partners are usually not involved in the day-to-day operations of the business. Filing with the Washington Secretary of State is required.

Limited Liability Partnership (LLP)

A Limited Liability Partnership (LLP) is similar to a General Partnership except that normally a partner doesn’t have personal liability for the negligence of another partner. This business structure is used most by professionals, such as accountants and lawyers. Filing with the Washington Secretary of State is required.

Limited Liability Limited Partnership (LLLP)

A Limited Liability Limited Partnership is a Limited Partnership that chooses to become an LLLP by including a statement to that effect in its certificate of limited partnership. This type of business structure may shield general partners from liability for obligations of the LLLP. Filing with theWashington Secretary of State is required.

Corporation

A Corporation is a more complex business structure. A corporation has certain rights, privileges, and liabilities beyond those of an individual. Doing business as a corporation may yield tax or financial benefits, but these can be offset by other considerations, such as increased licensing fees or decreased personal control. Corporations may be formed for profit or nonprofit purposes. Filing with the Washington Secretary of State is required.

Nonprofit Corporation

A Nonprofit Corporation is a legal entity and is typically run to further an ideal or goal rather than in the interests of profit. Many nonprofits serve the public interest, but some engage in private sector activities. If your nonprofit organization is, or plans to, raise funds from the public, it may also be required to register with the Charities Program of the Washington Secretary of State. Charitable activities may require additional registration. Contact the Office of the Secretary of State for more information.

Limited Liability Company (LLC)

A Limited Liability Company (LLC) is formed by 1 or more individuals or entities through a special written agreement. The agreement details the organization of the LLC, including provisions for management, assignability of interests, and distribution of profits and losses. LLCs are permitted to engage in any lawful, for-profit business or activity other than banking or insurance. Filing with theWashington Secretary of State is required.

Massachusetts Trust

A Massachusetts Trust is an incorporated business with the property being held and managed by the trustees for the shareholders. The trustees are considered employees since they work for the trust. Filing with the Washington Secretary of State is required.

Trust

A Trust is a legal relationship in which one person, called the trustee, holds property for the benefit of another person, called the beneficiary.

Joint Venture

A Joint Venture is formed for a limited length of time to carry out a business transaction or operation.

Tenants in Common

A Tenants in Common allows 2 or more people to occupy the same business while retaining separate identities in regard to assets or liabilities resulting from business activities.

Municipality

A Municipality is a public corporation established as a subdivision of a state for local governmental purposes.

Association

An Association is an organized group of people who share in a common interest, activity, or purpose.

Commercial law

Commercial law

A very detailed and well-established body of rules that evolved over a very long period of time applies to commercial transactions. The need to regulate trade and commerce and resolve business disputes helped shape the creation of law and courts. The Code of Hammurabi dates back to about 1772 BC for example, and contains provisions that relate, among other matters, to shipping costs and dealings between merchants and brokers. The word "corporation" derives from the Latin corpus, meaning body, and the Maurya Empire in Iron-Age India accorded legal rights to business entities.

In many countries it is difficult to compile all the laws that can affect a business into a single reference source. Laws can govern treatment of labour and employee relations, worker protection and safety, discrimination on the basis of age, gender, disability, race, and in some jurisdictions, sexual orientation, and the minimum wage, as well as unions, worker compensation, and working hours and leave.

Some specialized businesses may also require licenses, either due to laws governing entry into certain trades, occupations or professions, that require special education, or to raise revenue for local governments. Professions that require special licenses include law, medicine, piloting aircraft, selling liquor, radio broadcasting, selling investment securities, selling used cars, and roofing. Local jurisdictions may also require special licenses and taxes just to operate a business.

Some businesses are subject to ongoing special regulation, for example, public utilities, investment securities, banking, insurance,broadcasting, aviation, and health care providers. Environmental regulations are also very complex and can affect many businesses.