THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Monday, April 24, 1995 TAG: 9504220212
SECTION: BUSINESS WEEKLY PAGE: 05 EDITION: FINAL
SOURCE: BUSINESS WEEKLY
LENGTH: Medium: 53 lines
Mr. Mayor. Ms. Business License Tax Collector. Meet small businessman Joe Sansone of Virginia Beach. He'd like a few words with you.
``Everyone says they're so concerned about small business. Bull,'' he said. ``If you're really concerned, show us. I don't need a tax break. I can make more money if you get these people off the street.''
These people?
He means the unlicensed legion of landscapers, carpenters, painters, roofers, electricians and handy persons who accept their fee in cash under the table.
Sansone, a former special education teacher, left the classroom four years ago to work full time in his business, Specialty Landscaping, which he said is fully licensed.
Soon he found he competed with scores of moonlighters and entrepreneurs operating without workers compensation insurance, payroll taxes, income taxes, or state and city business licenses.
What irks Sansone are the prices. Specialty Landscaping's bid on a house paint job can run $1,000 more than the price charged by an unlicensed operator.
``Why don't I go without a license?'' he said. ``Because I want to be somebody. I want to be a small business owner. If I go to the bank to get a loan, I have to show them the books. I can't tell them the business is off the table.''
Sansone, who contends at least half his competition is unlicensed, suggests a solution. Each city should hand out window stickers with their business licenses. Then hire an inspector to fine work crews without stickers on their trucks.
While Virginia Beach can fine unlicensed contractors as much as $1,000 a day, Sansone claims the rules often are unenforced.
``If there was a city inspector driving around - saying, `Could I see your license?' - we'd have a lot less of this,'' Sansone said.
He also wishes the IRS would obtain city business license reports and cross index the owners with all entrepreneurs.
Specialty Landscaping includes two employees, three partners and four trucks, which means Sansone must come up with $8,000 a month to pay the bills.
``We don't have any profits,'' Sansone said. ``We pay ourselves $300 per week for 60 hours a week of work. We take any kind of job, but it's so hard to make a profit. You really have to work at it.''
KEYWORDS: CONTRACTOR by CNB