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BBallkid42
08-01-2011, 08:38 PM
Curious as to how much I should expect to pay for insurance? Right now I am a solo operation with the help of someone every now and then but 99% of time it is just me. Also got some questions on how to become a legal business. Obviously I will have to register my company and acquire a business license but what else would I need to get and how much cost am I looking at. And as far as taxes go, will the 6% sales tax I add on cover all the state and federal taxes I have to pay or will I have to increase my price as well to cover new taxes? Please don't think I have been a low-baller not paying insurance because I am looking into now so please no hate responses. I know there are a lot of questions but please help answer as much or as little as you can. Thanks

RussellB
08-01-2011, 08:49 PM
I pay $500 for $2 mil insurance. depends on value of your equipment. I went though "My corporation" to set up my LLC. I think I paid $700 for their services. Probably could have set it up myself but they did it and saved me the headache.
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rywnygc
08-01-2011, 08:52 PM
Curious as to how much I should expect to pay for insurance? Right now I am a solo operation with the help of someone every now and then but 99% of time it is just me. Also got some questions on how to become a legal business. Obviously I will have to register my company and acquire a business license but what else would I need to get and how much cost am I looking at. And as far as taxes go, will the 6% sales tax I add on cover all the state and federal taxes I have to pay or will I have to increase my price as well to cover new taxes? Please don't think I have been a low-baller not paying insurance because I am looking into now so please no hate responses. I know there are a lot of questions but please help answer as much or as little as you can. Thanks

You can contact your Department of State (or go online) and they will tell you exactly what you need to become a legal operation. If you go LLC (smart) you will need to file your articles of organization. Here in NY, it cost me 200 dollars. I then had to run an ad in two local papers. The ad is generic and the county clerk will tell you what they need to say. Thats about it for becoming a company as far as I remember. As far as insurance goes, it will vary from area to area. I pay 760 every six months for a million dollar liability policy, but I have coverage for me to leave the ground (roof cleaning, tree trimming, exterior lighting) and for plowing.
As far as taxes go, I just charge the tax rate on the bill and hand everything to my office manager (hot ass wife) and she does the quickbooks and then everything goes to an accountant.

Becoming legal is a process, but it's worth it.

rywnygc
08-01-2011, 08:54 PM
Oh, and you need to go on the IRS website to get your EIN (employer identification number). Kinda like a social security number for your business.

RussellB
08-01-2011, 08:55 PM
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RussellB
08-01-2011, 08:56 PM
You also need to make sure your company name is not already in use. "My corporation" will handle all of the above.
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BBallkid42
08-01-2011, 09:00 PM
I pay $500 for $2 mil insurance. depends on value of your equipment. I went though "My corporation" to set up my LLC. I think I paid $700 for their services. Probably could have set it up myself but they did it and saved me the headache.
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What is the difference between an LLC and a regular business?

RussellB
08-01-2011, 09:03 PM
There are better versed people on this subject but I was advised that the LLC limits my responsibility to the business assets and protects my personel assets.
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BBallkid42
08-01-2011, 09:09 PM
You can contact your Department of State (or go online) and they will tell you exactly what you need to become a legal operation. If you go LLC (smart) you will need to file your articles of organization. Here in NY, it cost me 200 dollars. I then had to run an ad in two local papers. The ad is generic and the county clerk will tell you what they need to say. Thats about it for becoming a company as far as I remember. As far as insurance goes, it will vary from area to area. I pay 760 every six months for a million dollar liability policy, but I have coverage for me to leave the ground (roof cleaning, tree trimming, exterior lighting) and for plowing.
As far as taxes go, I just charge the tax rate on the bill and hand everything to my office manager (hot ass wife) and she does the quickbooks and then everything goes to an accountant.

Becoming legal is a process, but it's worth it.

Based on everything my corporation did for you do you think the money saved by having my corporation do it was worth it? How much do you think you saved? And is it necessary to have an accountant because like I said it does not sound like I am as big as your company.

rywnygc
08-01-2011, 09:24 PM
I am a very small company....running solo right now. I have an accountant because I know crap about business and to be honest, I suck with money. I am currently in school and just switched my major from Biology to business administration and marketing. My wife just enrolled to go for business management and accounting.

My Father owns a business in the service industry and told me that LLC was the way to go. Russell hit it, it separates you from your company. Its a way to protect your business from you and the other way around. I would google it for an in depth explanation though.

BBallkid42
08-01-2011, 11:22 PM
I am a very small company....running solo right now. I have an accountant because I know crap about business and to be honest, I suck with money. I am currently in school and just switched my major from Biology to business administration and marketing. My wife just enrolled to go for business management and accounting.

My Father owns a business in the service industry and told me that LLC was the way to go. Russell hit it, it separates you from your company. Its a way to protect your business from you and the other way around. I would google it for an in depth explanation though.

I'm currently going to school right now with a major in Business Administration and have taken care of my own finances the last few years. Is there something I'm forgetting or not looking into that an accountant would?

rywnygc
08-02-2011, 09:38 AM
Are there things that you do on a property that an accountant might forget?

I'm not saying you need to run out and get an accountant; but it's not a bad idea. In my situation, I prefer to have one.

agrostis
08-02-2011, 06:15 PM
A LLC is a "incorporated" business. It protects you and your private assets - your house,car,bank account. A "regular" business that is not incorporated means you personally and all your assets are on the line if you get sued for whatever reason.

A accountant is a great idea for any size business. You will forget something related to bookeeping. And at tax time these people are worth every penny.

That 6% sales tax is for the state you live in. You still have to pay state and federal income tax.

It is a pain to jump through all these hoops but you will glad you did.

vencops
08-02-2011, 06:19 PM
Agrostis...

How can I get in touch with you. I can't seem to send you a PM.

bohiaa
08-02-2011, 10:45 PM
the laws will be diffrent in your state and sometimes in countys...

I was surprised when you said 500 for insurance...

as far as the LLC/INC. depending on your value. it may be better for you to simply file a DBA....

this is a decission you will have to make. each person is diffrent. read on your states web site and go from there. as far as accountaints. there is really NO reason to jump out there and pay some one to do this right off the bat.

after you GROW this is a good ideal, unless your good at it.
when I started I did everythign. NOW I'm to the point where I do all the taxes, and paper work.

again, do your OWN RESEARCH...... dont take advice from this site.....

I have seen a post where a person took advice and then got called in, and he said....
WELL this guy on the internet said I could claim it as a tax deduction...
DONT LET THIS HAPPEN TO YOU

BEST OF LUCK