PDA

View Full Version : Why should I start a business?


coopmaster
08-15-2008, 03:23 PM
What are the advantages / disadvantages to starting a business. Right now I am a one man operation and make a decent living at it. I cut 6-8 yards per day, all residential. No business license no taxes, all cash/checks. Tell me why I should start a legitimate business.

sbvfd592
08-15-2008, 03:49 PM
Because its the LAW if u are generating a income to report it. You need insurance in case something happens. You need a licence so if there is a discrepancy they can report it.

JB1
08-15-2008, 04:14 PM
What are the advantages / disadvantages to starting a business. Right now I am a one man operation and make a decent living at it. I cut 6-8 yards per day, all residential. No business license no taxes, all cash/checks. Tell me why I should start a legitimate business.

no need to worry about it until you get a registered letter or someone shows up at your house showing you IRS identification and starts asking questions. Maybe happen maybe not not fun when they do. Here is a article in our local paper about a couple of people I know. Just a junk yard owner but same difference.







Husband and wife Gregory J. and Donna G. Gurtz, ages 58 and 41, respectively, of Depauw, were charged July 29 with three counts of tax evasion, following an investigation by the Internal Revenue Service.

The information, announced by Timothy M. Morrison, U.S. Attorney for the Southern District of Indiana, alleges that the Gurtzes attempted to evade income tax they jointly owed for the calendar years 2004, 2005 and 2006, by preparing, signing and filing false joint U.S. Individual Income Tax Returns. Federal agents seized $1,843,130 from the residence and business locations near 8500 S.R. 337 in Depauw.

Court documents indicate that Donna Gurtz structured a substantial number of financial transactions involving money received from businesses and individuals doing business with Gurtz Auto Salvage and/or personally with Gurtz, so that no single transaction carried out by Gurtz was greater than $10,000 and so that the total amount of the transactions carried out by Gurtz on any given day was less than $10,000. Gurtz structured transactions by first having businesses and individuals write several checks to her, each check being for an amount less than $10,000, and then she cashed the checks over periods of several days, according to court documents. The transactions were structured so that there would not be a record of Gurtz Auto Salvage or the Gurtzes receiving certain funds from other businesses and individuals, thereby enabling the Gurtzes to under-report their income to the Internal Revenue Service.

From August 2004 through February 2007, Gurtz structured financial transactions totaling approximately $3,252,530, through her check-cashing scheme and received this approximate amount of money in cash from the financial institution where she performed the transactions.

On May 1, 2007, a search warrant issued by a Magistrate-Judge of the U.S. District Court for Southern Indiana was executed by IRS agents. The agents found $217,915 at Gurtz Auto Salvage and $1,625,215 at the couple's residence.

Assistant U.S. Attorney Todd S. Shellenbarger, who is prosecuting the case, indicated both Gurtzes face a maximum possible fine of $100,000. An initial hearing will be scheduled before a U.S. magistrate judge in New Albany.

The Gurtzes own Gurtz's Auto Salvage south of Depauw and formerly owned the Highway 64 Food and Fuel Center in Depauw.

When reached by phone Monday, the Gurtzes had no comment regarding the charges.

fool32696
08-15-2008, 09:45 PM
If you want to be a small timer the rest of your life and never grow, don't worry about it.
I know I wouldn't be dumb enough to let someone like you on my property.

topsites
08-16-2008, 01:07 AM
Normally I wouldn't even bother responding,
but I made an exception.

Have a nice day.

easycareacres
08-16-2008, 01:55 AM
yopu should not start a buss as youre a cheap muckenfuddled one who scrapes through life, dont dare ask quetions to ones that struggle honeslty

Grits
08-16-2008, 02:07 AM
What are the advantages / disadvantages to starting a business. Right now I am a one man operation and make a decent living at it. I cut 6-8 yards per day, all residential. No business license no taxes, all cash/checks. Tell me why I should start a legitimate business.

Why should we tell you the reasons to start a legit biz? You are a lowballing scrub.

coopmaster
08-16-2008, 12:09 PM
I posted the question looking for legitimate responses. I did not mean to imply that I will not make everything legit. Maybe my question should have been what is the process for starting a business. I was looking for advise not hateful replies. I lost my sales job of 11 years and just started cutting grass. Now that I have an established customer base I was curious about the benifits of making everything legal on paper. Sorry to offend, just trying to do the right thing.

Stillwater
08-16-2008, 12:22 PM
I posted the question looking for legitimate responses. I did not mean to imply that I will not make everything legit. Maybe my question should have been what is the process for starting a business. I was looking for advise not hateful replies. I lost my sales job of 11 years and just started cutting grass. Now that I have an established customer base I was curious about the benifits of making everything legal on paper. Sorry to offend, just trying to do the right thing.

you have your answer in post #2

New_Business
08-16-2008, 01:08 PM
I posted the question looking for legitimate responses. I did not mean to imply that I will not make everything legit. Maybe my question should have been what is the process for starting a business. I was looking for advise not hateful replies. I lost my sales job of 11 years and just started cutting grass. Now that I have an established customer base I was curious about the benifits of making everything legal on paper. Sorry to offend, just trying to do the right thing.
you have much to learn...

thelawnboss
08-17-2008, 08:21 PM
Why do you assume he is a lowballing scab? He may charge twice what you do...ever think of that?

This guy already stated he had alot to learn , thats why he is asking questions...i really wish some times that i was as smart as some people on this site and KNEW EVERYTHING before i got in. I didnt know what i was doing, i am all legal and doing stuff the right way, but for years i didnt know that i needed all that stuff.

EVERYONE starts somewhere, dont talk down to this guy because he doesnt know everything right now. Just because you may have more experience does NOT make you any better than anyone else.

ffemtmcd
08-17-2008, 08:47 PM
Lord forbid we actually help someone - I started last year as a DBA (doing business as) it's cheaper to start out that way - got insurance and lic's. As business grows you can inc. or llc. would be my advise. Anything else??

Grits
08-17-2008, 09:04 PM
Why do you assume he is a lowballing scab? He may charge twice what you do...ever think of that?

This guy already stated he had alot to learn , thats why he is asking questions...i really wish some times that i was as smart as some people on this site and KNEW EVERYTHING before i got in. I didnt know what i was doing, i am all legal and doing stuff the right way, but for years i didnt know that i needed all that stuff.

EVERYONE starts somewhere, dont talk down to this guy because he doesnt know everything right now. Just because you may have more experience does NOT make you any better than anyone else.

Whatever. He doesn't have ANY of the expenses that a real biz does. Therefore, he is a lowballing scrub. OK, he may not lowball (i bet he does), but he is still a scrub. His first post sounded very condescending towards becoming a "legit" biz, hence, the lowballing / scrub comments. IMO, he is a scrub until he gets legit.....insurance, taxes, licenses, etc.

atasteofnature
08-17-2008, 09:20 PM
coopmaster good luck with your business. You'll be fine as long as you don't waste your time bad mouthing others but using your time to research and set up your business.

thelawnboss
08-17-2008, 09:45 PM
I guess I missed where he said he didn't pay taxes. The only real problem I see is insurance. What licences do you have for cutting? Jhere we don't have any unless you spay pesticides or herbicides.

Plenty of guys with a DBA and insurance. You get those two and you will open yourself to more work. For the small extra cost it is worth it

And my last bit of advise won't sit well with many here. Don't spend too much time posting on this site looking for actual help. A lot of guys on here are just jerks that like to spout off about everything. Read a lot. But be careful when you post. PM me if you want. I will help you as best I can

grassyfras
08-17-2008, 10:10 PM
It shows that you have an income if you ever need credit for a home, business loan, credit cards(not that they would even care) etc

It keeps the IRS off your back


IF something ever happend to your "business" you would have insurance to help you get back and going

Customers may think your more professional meaning more money

Some people sleep better at night

HOOLIE
08-17-2008, 10:12 PM
The one advantage I can think of is, if you try to buy a house or obtain a business loan, they're gonna want you to produce your business license. So to not have one could be problematic.

browningv308
08-17-2008, 11:29 PM
i lost my job in construction back in march so i did like everyone else and got the mower out of the garage and started cutting grass while i looked for a job started making some money at it and said ill look for a job this winter when things slow down i put adds on craigs list and got some good mowing jobs 1 day i got a call from an old lady asking me to price her lawn after showing up at her house we talked about her lawn care for a while and then she asked if i was licensed i said no mam i just cut a few yards and didn't think i needed a license she then told me that she was the deputy treasurer for my county and that i needed to be in her office first thing the next morning or else well after talking to the judge and paying a large fine and getting a business license it all made sense but now that the grass is not growing very well and with no money for the last 2 months i tried to apply for unemployment but was turned down because i was self employed i feel like Ive been screwed and i still can't find a job life just sucks

browningv308
08-17-2008, 11:37 PM
now that i an a legitimate business it does irritate me when i see some dude with a lowes push mower in his trunk and polan weed eater hanging out of his window driving around the neighborhood that i mow in but at the same time i know that he is probably in the same situation I'm in

ffemtmcd
08-17-2008, 11:42 PM
Whatever. He doesn't have ANY of the expenses that a real biz does. Therefore, he is a lowballing scrub. OK, he may not lowball (i bet he does), but he is still a scrub. His first post sounded very condescending towards becoming a "legit" biz, hence, the lowballing / scrub comments. IMO, he is a scrub until he gets legit.....insurance, taxes, licenses, etc.

So because I don't have all the expenses of a "real" business, I'm a scrub?? And I'm part time so that's probably worse in your book - whatever - I pay cash for all my equipment too so I have no debt - I must be a super scrub!!

Sorry to get off subject!!

Grits
08-18-2008, 12:09 AM
So because I don't have all the expenses of a "real" business, I'm a scrub?? And I'm part time so that's probably worse in your book - whatever - I pay cash for all my equipment too so I have no debt - I must be a super scrub!!

Sorry to get off subject!!

You said it, I didn't. Do you pay taxes with your part-time biz? Do you have insurance for your part time biz? Do you have proper licensing? IF you answer NO to any of these questions, then you are a scrub, IMO.

ffemtmcd
08-18-2008, 12:13 AM
read my earlier post - yes I have all the required lic / insur. -and of course I pay taxes.

Grits
08-18-2008, 02:31 AM
read my earlier post - yes I have all the required lic / insur. -and of course I pay taxes.

Then I don't think you are a scrub!:drinkup:

coopmaster
08-19-2008, 08:23 PM
Thank you to those who posted positive answers and suggestions. Yes I do pay my quarterly taxes. Monday I contacted SBDC - Small Bussiness Developement Concil. I am meeting with a person from there on Friday. I contacted my State Farm rep about insurance and she said they no longer write policys for Lawn Care.Another question, what do you typically pay for insurance?Thanks,

Grits
08-19-2008, 08:26 PM
Thank you to those who posted positive answers and suggestions. Yes I do pay my quarterly taxes. Monday I contacted SBDC - Small Bussiness Developement Concil. I am meeting with a person from there on Friday. I contacted my State Farm rep about insurance and she said they no longer write policys for Lawn Care.Another question, what do you typically pay for insurance?Thanks,

I pay around $600 per year for GL 300,000 / 600,000

browningv308
08-19-2008, 09:26 PM
check with BB&T if they are in your area if you have never heard of them they are a bank anyway they gave me a 1 milion dollar liability for $460 a year not bad at all for a first timer

ffemtmcd
08-21-2008, 10:08 AM
Make sure you talk to your agent - I asked for a 500,000 policy and was told 300 / year then I asked out of curiousity what a 1 mil policy was and was quoted 300/year because I hadn't topped the "magic number" - went with the 1 mil. - if I hadn't asked I wouldn't have known.
Kinda wish they had offered the higher amount in the first place.