business advice forumn...

E

Envious Eric

New member
what is a good place to get some business advice without having to talk to a lawyer about it and get charged 400 an hour...



basically looking for info on a sole proprietorship and having to have a business license...I have the DBA already done, but thinking that I can just put everything into my personal account since I am the only one who does the detail work (with the exception of multiple details in one day, then someone will do the interiors while I do exteriors)...i dont need a business license for this right, i just have to keep records and pay the appropriate taxes/claim write offs at the years end, right?



but then I was wondering about if I have two employees doing car washing and driving a truck I buy, fully insured for them to drive, would I have to have a business license for that?



what is the point of a business license over a DBA?



I was contacted by the BBB and asked if I wanted to become a member. I asked what if I dont have my business license yet, and the guy said i dont need it, thats just a tax id so the government can tax you...



i didnt get into it with him on specifics as that is not the point of his call, but it got me thinking...again, whats the point of a BL over a DBA???

 
I don't know much, my brother actually schools me when it comes to this because he has created a couple businesses himself...but here is what I found...check it out, it explains alot...DBA or Doing business as - LegalZoom.com



A business License is something that the state/city in which you operate in require you to conduct business with the public.



If you can, join the BBB...it pays off in the long run. I always check the BBB when I'm questioning a compnay!



Hope it helps alittle...
 
Yeah, I always thought you used a DBA if you went bankrupt and couldn't use the original name as your business name anymore, so you restart with a different business name and DBA the original. Frank Canna (mirrorfinishman) probably could tell you all about this but I don't think he'll talk to you because you don't use your real name on the forum.



EDIT: Here's a better answer than I gave: Doing Business As (DBA) a Fictitious Business Name: Why and How
 
Setec Astronomy said:
Frank Canna (mirrorfinishman) probably could tell you all about this but I don't think he'll talk to you because you don't use your real name on the forum.
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Now that was not nice!:shocked
 
This all varies from state to state. In Virginia, a business license is issued by the county in which the business is located. It is called a business professional and occupational license. It indeed is basically a license for the county to tax you on your business income and property. The DBA is just if you are conducting business under a fictitious name and not your real name. In Virginia, if you are a sole proprietorship you do not need anything special. An LLC or INC requires formation at the state level. With federal taxes, a sole proprietor files using his SSN. An LLC or an INC. has to obtain a EIN (Employee Identification Number) to use for federal taxes. It is important to have a business license, as that is what banks look for when they loan you money. They want to see that you have been in business for two years or more. The way I understand it is, if you have had your business license for two years, that is what matters. I would try to get some information from your local SBA.
 
Be nice, now, and let it go. I've had to do too much moderating today . . . let's not let heated discussion in one thread cause grief in another.



Thanks,

Tort

(moderator)
 
toyotaguy said:
what is a good place to get some business advice without having to talk to a lawyer about it and get charged 400 an hour...
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Hey Eirc,



The best advice and believe me I do this all the time with all types of professionals, is to go out there and start contacting a few business lawyers in the Orange County area. They would be the ones who are charging the $400 an hour. And because they are charging $400 an hour, they can easily afford to have you detail their cars. Do whatever it takes to let them know about the detailing services you can offer them. I am not talking about bartering, that is something completely different where you trade your services. What I am talking about is picking up a few of these people and turning them into satisfied customers. Once that happens you will gain a friend and be able to get all of the professional advice you need for free.



Just go out there and target the professionals who can answer your questions. Below is a listing of some of the business lawyers in the Orange County area. Have fun!



Orange County, California Business Attorneys, Lawyers and Law Firms
 
I live in Ohio. I own and operate Showroom Shine Auto Detailing LLC. I'm a mobile service, no building. I am registered with the secretary of state, I have a venders licence, I have a Federal Tax ID number. This is just in case I need to hire a guy here and there to help me. I can 1099 them and not worry about it. I pay my state and federal taxes. I write each client a receipt for work done. Even if they do not want it I keep a copy for my records. I record everything because I do not want to be bothered by our UNCLE!

I imagine alot of mobile detailers fly under the radar. This is a personal choice. I fell alot more comfortable when I file my taxes and have alot of expenditures and write offs for products, mileage, gas service to vehicle, etc. But like I said it's a personal choice.:up
 
I'm not mobile, but I was told to get Garage Keepers Insurance. It pretty much covers you in every way...even when transporting vehicles back and forth...like myself! Read up on it...
 
mirrorfinishman said:
Hey Eirc,



The best advice and believe me I do this all the time with all types of professionals, is to go out there and start contacting a few business lawyers in the Orange County area. They would be the ones who are charging the $400 an hour. And because they are charging $400 an hour, they can easily afford to have you detail their cars. Do whatever it takes to let them know about the detailing services you can offer them. I am not talking about bartering, that is something completely different where you trade your services. What I am talking about is picking up a few of these people and turning them into satisfied customers. Once that happens you will gain a friend and be able to get all of the professional advice you need for free.



Just go out there and target the professionals who can answer your questions. Below is a listing of some of the business lawyers in the Orange County area. Have fun!



Orange County, California Business Attorneys, Lawyers and Law Firms
Click to expand...



haha man don't feel bad about trading services, my friend has a dad who is a lawyer and he said all i had to pay was the state registration fee and such and that he would do it for free... i told him in return i would give him 2 washes/waxes on his Porsche Cayenne ;)



i love connections :bow
 
mixxer said:
What do you mobile guys do about health insurance if its just you?
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I joined the NASE (national association for the self-employed). They offer group health insurance. Buying health insurance as a large group significantly lowers your premiums compared to a private policy. The policy I have through them has a fairly high deductible for hospital inpatient, but so far worked out well for routine stuff.
 
I run a business (not detailing) in LA County, but there aren't going to be that many differences.



First question is how are you going to form your business? There are two basic ways:

1. Sole proprietor/partnership: You will need to do a DBA to open a checking account in your business name and to get your resellers permit from the state.



2. Corporation, either LLC or S type: you will still need your DBA to get your resellers permit.



Which brings us to another point. A corporation, if you can afford to form one, offers you a level of protection not available from sole proprietorships and partnerships. With either of these if you go out of business you are personally responsible for any debt owed by your business, including sales tax and income tax. A corporation gives you some protection (depending on how it is formed). Right now LLCs (limited liability corporations) are popular. If you form it correctly you can avoid the double taxation of a regular (chapter S) corporation; in an S-corp you have to pay taxes on your corporate profits AND pay personal taxes when you take any profits out of your business (your regular paycheck from the company doesn't count as profit taking) With an LLC you basically add your profits directly to your other income and are only taxed once at your regular income tax rate.



An LLC kind of gives you the best of both worlds. You get the better parts of both a sole proprietorship and an S-corp corporation.



Oh, and before I forget, the business license is something you get from your city and/or county. Check with each to see what they require.
 
Find a mentor. Work for him. Pay attention to everything. Do everything. Learn from him.

Then, buy his business. :hifive:



Seriously, this is the way craftsmen have been trained for literally centuries. It is not a new concept.



Understanding how to operate a business is truly more important than being a perfect detailer.



:chill: Take your time, work for someone else and absorb everything you can. Then, when you're ready, you can start your own (ad)venture.



Good Luck!



Jim
 
macaddicted said:
If you form it correctly you can avoid the double taxation of a regular (chapter S) corporation; in an S-corp you have to pay taxes on your corporate profits AND pay personal taxes when you take any profits out of your business (your regular paycheck from the company doesn't count as profit taking)
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You've got this a little mixed up. It's actually a C-Corp that subjects you to double taxation, if you sell your business. I guess in a way, you also get double-taxed on shareholder dividends (which is kind of the way you get double-taxed if you sell), but you're going to pay personal taxes on any money you make, any how, any way.



EDIT: No, I'm wrong, you don't get taxed on dividends at the corporate level in a C-Corp, they come off the bottom line.
 
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