Home-based business: Process in place to protect community, prevent fines from illegal operations

  • Published
  • By Senior Airman Daryl Knee
  • 52nd Fighter Wing Public Affairs
Service members and their families wishing to start a home-based business now have a clear approval process to ensure legality and compliance with U.S. and German laws.

The process is designed to protect community members from fines imposed by illegal operations, which are sometimes performed unwittingly.

"We want our community to be straight," said Julius Morales, Spangdahlem's customs field office chief. "Just follow the guidelines and you'll have nothing to worry about."

Initial requests to operate a home-based business must be routed through the 52nd Mission Support Group starting with the home-based business coordinator, John Downey. This is the first stop in the process and must be completed.

The information for the request letter should include the name of the business, address, phone number, sponsor's name and unit, type of business, services or goods offered, proposed methods of contacting customers and advertising, and how the services will be conducted.

Downey's office then coordinates the request with Army and Air Force Exchange Service, 52nd Force Support Squadron and other base services to ensure there is no competition for similar items or services. If competition exists, the base may not approve the home-based business.

"If you don't have the base's approval," Downey said, "then you shouldn't be doing it."

There is competition if a home-based business is built to sell plastic ware, Downey said as an example. Since The Exchange sells similar items, the business owner is essentially taking customers away from AAFES.

However, Downey said, if the business owner sells specific items not available at any base facility, the mission support group will normally approve the request.

"It's a good idea for the community," he continued. "It allows us to have access to products [and services] that are normally offered in the States. And, it's an extra source of income for someone who may have had a tough time finding a job."

As home-based businesses bring in additional income, appropriate taxes must be paid to the German government. So, after approval from the base's mission support group, the business applicant must register with a German trade or finance office to obtain a tax I.D. number.

"Tax evasion in Germany is just as severe as manslaughter," Morales said. "We're not trying to scare anybody; we just want our community to do the right thing."

Many base agencies review the business request for the applicant's protection, Downey said.

"It is not impossible to operate a home-based business in Germany," he said about the perceived difficulty. "Do your homework, and look at what is not already available. There's an opportunity out here to make money, and you can do it if you want."

For more information, call Spangdahlem's customs field office at DSN 452-4500 or the home-based business coordinator at DSN 452-5015.