A couple of legal questions

Irkie500 · 12-29-08, 05:18

I hear the term DBA, I know what it means but could I get in trouble for not having one cleaning cars in my neighbrohood or my partners?

brwill2005 · 12-29-08, 06:22

Do some research on your local laws. Usually you will need a license from the county in which the business is registered. DBA (doing business as), is usually required if the business name is different than your own. You should also get insurance to protect yourself. Of course all these things are optional, but people operating without licenses and insurance etc. makes the industry as a whole look bad. It also makes it difficult for 'professionals' to charge appropriate prices. Those operating under the table can charge less because they have less expenses and do not pay taxes.

bufferbarry · 12-29-08, 06:27

i just got my dba and garage keepers and although probaly ot really needed i feel better knowing im protected and knowing that i have licenses. do it right take your time.

builthatch · 12-29-08, 06:31

Quote:

Originally Posted by Irkie500

I hear the term DBA, I know what it means but could I get in trouble for not having one cleaning cars in my neighbrohood or my partners?

IMO...forming an LLC is the way to go. you'll lessen your personal exposure to litigation, so your own personal assets are protected. you can open up commercial accounts for...whatever it is. you can skip paying sales tax on purchases for the business.

the best part is you can pay yourself out of the LLC whatever income you want, within reason. the business can see a loss, anything and everything that has to do with your type of business can be written off, including vehicle(s), add'l insurances, supplies, blah blah.

i dunno, i'm sure this stuff has been covered in this section of the forum and i'm a n00b to autopia so forgive me for being redundant

Irkie500 · 12-29-08, 06:32

Starting out we will be under the table as un-ethical as it may be. However it does allow us to get our name out there in a small area before moving on to larger marketing strategies to attract more customers. I have a form that we fill out marking off any prior defects to the paint before we start so we cannot get blamed for a mark the customer might claim we made. This does not however protect us IF we do damage the vehicle, insurance will come later down the road for sure.

The cool thing is nobody else in the area has a mobile detailing buisness, there are a couple of shops that do minor detailing but nothing as intensive as this.

-------

By the way thanks everyone for all the help, and I have nothing but time before we start so im sure we will be all set when we get going.

builthatch · 12-29-08, 06:48

Quote:

Originally Posted by Irkie500

Starting out we will be under the table as un-ethical as it may be. However it does allow us to get our name out there in a small area before moving on to larger marketing strategies to attract more customers. I have a form that we fill out marking off any prior defects to the paint before we start so we cannot get blamed for a mark the customer might claim we made. This does not however protect us IF we do damage the vehicle, insurance will come later down the road for sure.

The cool thing is nobody else in the area has a mobile detailing buisness, there are a couple of shops that do minor detailing but nothing as intensive as this.

-------

By the way thanks everyone for all the help, and I have nothing but time before we start so im sure we will be all set when we get going.

dang, i dunno man. maybe i'm missing something but do you have an LLC already for some other venture? it's so easy to form one for this...

there are so many scenarios where things could backfire. if you do some dude's bentley and he claims WHATEVER, he could go after your personal assets.

i hear you regarding have an exclusive in an area. the key is to not tell anyone what you use...at all. do not let anyone see you product selection, etc.

i've had some of the local wham bam shops quiz my customers and contacts about what i use.......needless to say, they will never know. i don't advertise on the forums, so they'll never find out through this stuff either.

they don't know who 'builthatch' is...noone does, which is ideal

it's a total secret

brwill2005 · 12-30-08, 06:24

Getting an LLC is definitely a great idea. Mostly because it protects your personal assets in the case of a lawsuit. You WOULD need an business license first before getting an LLC. I can not see a state granting one to a business without a tax license. In my county a business license cost all of $30 if revenue is <$200,000. I obtained mine back in 2003 when I was very much still part time. This helped me down the road because the license officially establishes your business. This fact is important when you go to get insurance and financing.

Irkie500 · 12-30-08, 08:16

how would I know how much the business license will cost me if I dont even know how much money I bring in?

Flashtime · 12-30-08, 08:43

You have lots of researching to do...

Nolo: Law Books, Legal Forms and Legal Software

D Tailor · 12-30-08, 09:16

Quote:

Originally Posted by bufferbarry

i just got my dba and garage keepers and although probaly ot really needed i feel better knowing im protected and knowing that i have licenses. do it right take your time.

Sorry this is a bit OT...
Hey BufferBarry! I definitely agreee with you. Take your time and do things by the books. It makes you look like a professional and not just some hack trying to make beer money. Where do you work out of in Lancaster County? I run out of Neffsville. My fiance and I just incorporated and finished our garage overhaul getting ready for the mid winter jobs. Shoot me a PM sometime or email me and maybe we could get a network together.

brwill2005 · 12-30-08, 05:15

Quote:

Originally Posted by Irkie500

how would I know how much the business license will cost me if I dont even know how much money I bring in?

Go to your county website and they should have the information. As I stated it cost only $30 in my county unless your revenues are greater than $200,000. I would imagine your county is similar. Unless you plan on grossing hundreds of thousands, it will not cost you much.