Becoming a Legal Business - Page 2

Jakerooni · 07-06-09, 07:09

Being under 18 I'm not entierly sure you can be a legal business anyways... Again it would be worth the phone call to a local accountant or attorney just to ask the question first.

Got More Wax · 07-07-09, 09:52

Now we gotta be legal?!?!

89gt-stanger · 07-08-09, 07:16

Quote:

Originally Posted by Got More Wax

Now we gotta be legal?!?!

I am sensing sarcasm. lol

Showroom Shine · 07-09-09, 05:33

Quote:

Originally Posted by Jason M

Every state is different....well, maybe not EVERY state. But they all have their own rules. In Colorado for example, you don't need to do anything...literally, nothing to become a Sole Proprietor. You don't need to register, have insurance, etc. You *can* register with the state if you want. You are only responsible for paying your income tax at the end of the year. Keeping track of your receipts and mileage on your work vehicle is important. Other than that don't expect to write much off unless you move up to having employees and becoming an LLC.

Again, Texas might be completely different. Going to your states website would be a good start.

Seacxh the laws and rules where you live!

Got More Wax · 07-09-09, 08:36

Showroom is correct. You shold, however, consider incorporation for protection from personalo liability. Traffic accidents, damage to client's car, etc. can all fall back on you personally if you are not properly protected. Further, if you are a minor and one of these misfortunes should befalls you, your parents will likely be held liable.

Andy

mshu7 · 07-09-09, 09:07

Quote:

Originally Posted by Got More Wax

Showroom is correct. You shold, however, consider incorporation for protection from personalo liability. Traffic accidents, damage to client's car, etc. can all fall back on you personally if you are not properly protected. Further, if you are a minor and one of these misfortunes should befalls you, your parents will likely be held liable.

Andy

Andy - Incorporating isn't necessary or worthwhile if you don't have a large gross income. From what I've been told by my CPA, it's a much more complicated and expensive process to incorporate. Setting up a simple LLC will take care of any liability issues and it's easy and cheap to do. My LLC cost me somewhere around $90 and it was just one simple form to complete. Insurance is what's going to cover the actual damage if something happens to a customer's car, etc.

Got More Wax · 07-09-09, 09:26

Tomatos tomatoes...LLC, "Limited Liability CORPORATION"

And, don't think that insurance is the endall if a business has an accident where unjuries are a result. They will come after your personal assets as well.
Andy

Quote:

Originally Posted by mshu7

Andy - Incorporating isn't necessary or worthwhile if you don't have a large gross income. From what I've been told by my CPA, it's a much more complicated and expensive process to incorporate. Setting up a simple LLC will take care of any liability issues and it's easy and cheap to do. My LLC cost me somewhere around $90 and it was just one simple form to complete. Insurance is what's going to cover the actual damage if something happens to a customer's car, etc.

Jakerooni · 07-09-09, 09:40

If you are a corporation (LLC, S-Corp or C-Corp) and you don't break the corporate veil they can't come after your personal assest even if they wanted to. That's the entire point of incorporating. "Limited Liability!!!!!!!!" that's why just grabbing a DBA and becoming a sol-prop is probably one of the stupidest most idiotic things anyone could ever do to become a business. It's so easy and cheap to just get some liability protection in the first place. Sol-props are just asking for it and really get what they deserve if they get sued in my book.

mshu7 · 07-09-09, 10:09

Quote:

Originally Posted by Got More Wax

Tomatos tomatoes...LLC, "Limited Liability CORPORATION"

And, don't think that insurance is the endall if a business has an accident where unjuries are a result. They will come after your personal assets as well.
Andy

My apologies, I thought you were talking about actual incorporation. Also, I never said insurance was the end-all for accidents. It's something that is needed along with the LLC, etc.

CtMobileDetail · 07-13-09, 06:57

Insurance is the biggest cost that I am working on overcoming now. I am going legal also and my insurance for the van, liability, and "garage" insurace that I must have in CT to operate mobile are going to run me $2500 for the first year. This seems high to me?? Anyone agree??
Thanks
Jeff

mshu7 · 07-13-09, 07:05

When I was mobile...

My garage keepers was running me around $1200 a year. However, when I added a commercial auto policy for my 2007 Tacoma (leased) and an Atlast 5x10 enclosed trailer with all my gear, the cost sky-rocketed to almost $4k per year. And I have a clean driving record.

Since converting to a fixed location operation, I'm paying just over $900 a year.

bufferbarry · 07-13-09, 07:12

Quote:

Originally Posted by mshu7

When I was mobile...

My garage keepers was running me around $1200 a year. However, when I added a commercial auto policy for my 2007 Tacoma (leased) and an Atlast 5x10 enclosed trailer with all my gear, the cost sky-rocketed to almost $4k per year. And I have a clean driving record.

Since converting to a fixed location operation, I'm paying just over $900 a year.

wow may i ask who you have for a provider? im paying 1500 a year