BUSINESS START UP

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WAYNE0 said:
yes
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S corp I started was to limit my liability. You could be legit as far as income or the business itself.
If you worked 20 years already on the books your paid into SS, I have no idea what you would get when you turn 65.....SS is important if God forbid you become disabled or you pass away and have younger children.... If your worried about taking so much cash and the getting jammed up for taxes, id discuss this with a good (tax) attorney who caters to small business. Forget about what you read here, consult people who are professionals
The other thing that going legit as far as opening a restoration shop which involves body work is the township, you can absolutely expect inspectors to visit and you will have to have your shop up to code and that isn't cheap
On the other hand, doing it on the side, all it takes is one pissed off neighbour or one irate customer who thinks you screwed him and they call the authorities. You will be shut down in a day and possibly state and feds coming around looking for their cut
Id probably start a S corp and build a small shop with separate paint and compressor rooms, have a spray booth, and whatever else codes call for
Your CPA can tell you what deductions you can take
Once you get your feet wet you can decide if you stay a one man shop or expand
 
Thank you all for the advise. As for the shop its self i have a friend that teaches auto restoration & auto painting. He helps me when it comes to what legal, booth filters, paint wast, every thing i need to know. Every thing else im in the dark with. Im zoned commercial. The women that lives beside me late husband had a body shop just above me until he past away about 10 years ago. Tried to buy it but shes not ready to sell. I know going "legit" could be expensive but getting caught & paying fines would be also.
 
Do your research on LLC vs S- corp. Each has benefits and caveats.
 
WAYNE0 said:
I was doing classic auto restorations part time now im doing it full time. Under the radar if you know what i mean. Like to start a legit business. Just asking for some pointers. What to do What not to
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Well, I can tell Ya this, it's ALL Money OUT at first!
 
I started on my own for a while, but I had a few problems. If people came to me with their work and their problems, I would have been OK.
Potential payday was fantastic, but my product was for a somewhat limited audience. High-end home audio and home theaters.
Customers don’t come to me, I had to go to them. None of them wanted to know anything about my time on the road gathering their product, and even just getting back-and-forth to their house. I covered a large geographical area, when the system is broken and their kids can’t watch TV it’s a crisis to get there and get it fixed, but the time spent traveling there, diagnosing the problem, bypassing something so that at least something works, traveling to the repair shop or packing and shipping, traveling back to the house after repair, time spent reinstalling some thing, and travel time back home added up to a lot of hours that people couldn’t grasp.
That wasn’t a business that one person could cover sales leads, finding and selling the next job, service work, (Quality initial install, and good quality products kept that somewhat to a minimum), but you can’t control Tampa Bay lightning. There was time spent wiring the house, either while it was under construction or what I was really good at, an already finished house. then the actual equipment install and programming a remote so even a Child could easily operate a complex system, and where most others drop the ball, tuning and tweaking a system so that it sounds fantastic. That doesn’t just happen out of the box.
My total income even before expenses was below what is considered poverty level, yet the IRS Wants their money. Sales tax is still due, but you collect that from the customer and it goes to the state. I tried, but hi accepted a job from a large company when I got a call out of the blue.
 
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That right there is why home service stuff is usually billed at $100 per hour or more.

I tried being an independent computer repair guy for a while in the early 90's.

Horrible experience. I still don't work on "people's personal computers", of the employees I work with as a computer guy for over 300 connected devices.

Back in the 90's I had everything happen from people who accused me of being the cause of their PC not working "correctly" months later to actually being ripped off for 6 hours labor plus parts by a church.

Owning rental properties is MUCH easier and more financially rewarding.
 
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EmelyKaufman said:
I have started a small business before, and I know it can be both exciting and daunting at the same time. Starting a business requires a lot of planning, research, and hard work.
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yea i hear ya its the financial help to start up is where im hitting a wall
 
i can't speak to the financial funding but to the other stuff:
>get situated as an LLC or S-corp to protect your personal assets (home, retirement, etx).
>don't expect it all to be smooth sailing and be okay with changing your initial ideas
>be aware enough to know when it's not working and do something about it
>look for market opportunities and don't be afraid pivot
>don't try and do everything, it's okay to sub some stuff out. relationships with other people in the industry can be mutually beneficial.
>it's okay to say no. it's okay to fire a customer. sometimes they need it.

if you do good work, and you're honest you've got it in the bag. best of luck and go kick some *** man!
 
junkyardhero said:
i can't speak to the financial funding but to the other stuff:
>get situated as an LLC or S-corp to protect your personal assets (home, retirement, etx).
>don't expect it all to be smooth sailing and be okay with changing your initial ideas
>be aware enough to know when it's not working and do something about it
>look for market opportunities and don't be afraid pivot
>don't try and do everything, it's okay to sub some stuff out. relationships with other people in the industry can be mutually beneficial.
>it's okay to say no. it's okay to fire a customer. sometimes they need it.

if you do good work, and you're honest you've got it in the bag. best of luck and go kick some *** man!
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Thank you asses kicked names taken
 
@WAYNE0 Pick up a copy of the E-myth. It explains that many people go into business doing what they know and love...such as car repair. In the beginning all is well because friends and family are bringing you business. Oftentimes, you are working "in" your business repairing cars, or whatever it is. In addition to performing the work, you are also doing the books, and marketing, and buying supplies, and, and, and....

Soon new business dries up and you're so burned out from doing "everything" that you give up.

The book is an easy read and gives you a great look at what it takes to start up and run a business.

I would never try to talk anyone out of trying to become self employed. In fact, I have mega respect for anyone who succeeds in business. It is not for the faint of heart!! I've tried twice and neither turned out the way I wanted. I think my problem is I haven't been passionate about anything as much as I was about the military. Civilian life is just not the same!!
 
66fyssh said:
@WAYNE0 Pick up a copy of the E-myth. It explains that many people go into business doing what they know and love...such as car repair. In the beginning all is well because friends and family are bringing you business. Oftentimes, you are working "in" your business repairing cars, or whatever it is. In addition to performing the work, you are also doing the books, and marketing, and buying supplies, and, and, and....

Soon new business dries up and you're so burned out from doing "everything" that you give up.

The book is an easy read and gives you a great look at what it takes to start up and run a business.

I would never try to talk anyone out of trying to become self employed. In fact, I have mega respect for anyone who succeeds in business. It is not for the faint of heart!! I've tried twice and neither turned out the way I wanted. I think my problem is I haven't been passionate about anything as much as I was about the military. Civilian life is just not the same!!
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Thank you I have several things i will be doing on top of the classic/antique body and paint. Truck bed liners, weld and fab work, vinyl graphics/lettering, metal polishing just to name a few. As of right now i have guys coming from out of state. My biggest issue is i need more space. Not to mention a booth. I have a few friends who have there own businesses and a few who work at the local tech school.
 
George Jets said:
Definitely, always want to have a good tax man, they are worth their weight in gold.
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Fully agree with this. Your Accountant/Tax man will make all the difference in a business. If they are not doing what you want with your taxes then they aren't trying.
Can't say it enough, WORTH THEIR WEIGHT IN GOLD.
I am the president of my S corp. If I mess up, I lose My business and assets but I do not have my home taken because of whatever the reason for failing.
I build Custom Homes. With my own hands. I'm not a dashboard general. I find the clients and I deal with the majority of the home build. It can be very stressful and can control your every thought.
Legit is the way to go though. For SS and for investment Credit.

I have a client that is wanting to pay me some 2Million in cash. I refused and made him get a loan on his existing money. I'm not in the business of laundering money and not claiming income for the year to build his home. Not worth it.

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Whatever you do, don’t start a car wash business.
 
Cuda Hunter said:
Fully agree with this. Your Accountant/Tax man will make all the difference in a business. If they are not doing what you want with your taxes then they aren't trying.
Can't say it enough, WORTH THEIR WEIGHT IN GOLD.
I am the president of my S corp. If I mess up, I lose My business and assets but I do not have my home taken because of whatever the reason for failing.
I build Custom Homes. With my own hands. I'm not a dashboard general. I find the clients and I deal with the majority of the home build. It can be very stressful and can control your every thought.
Legit is the way to go though. For SS and for investment Credit.

I have a client that is wanting to pay me some 2Million in cash. I refused and made him get a loan on his existing money. I'm not in the business of laundering money and not claiming income for the year to build his home. Not worth it.

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Beautiful homes, do you build any with six car garages?
 
Car Nut said:
Whatever you do, don’t start a car wash business.
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Interesting.

Why not?

1- the guy that married my cousin started a detail business in 1989 and they now have a $700,000 custom built house with a barn, harleys, corvettes and all sorts of other crap.....just form "washing cars".
People pay $100 or more an hour for other people to do that so they don't have to...even if those people make significantly less than that.

2- there has been a boom of automated "gentle touch" car washes built around here. At least 5 within 5 miles of my house and a few more on my commute to work. They have to be money makers or people wouldn't keep building them. Some are "mom and pop" operations but at least three are "Mister" chain owned. Washes start at $15 but can go to $30 if you get the extra tire shine and wax etc. For $15 it's a way better deal than me doing it.
 
I've passed the 10 year mark.

Seriously considering adding "Since 2012" to my business cards.
 
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