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Old 08-01-2011, 08:38 PM
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BBallkid42 BBallkid42 is offline
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Insurance and License Questions

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
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Old 08-01-2011, 08:49 PM
RussellB RussellB is online now
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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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Old 08-01-2011, 09:00 PM
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Quote:
Originally Posted by RussellB View Post
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?
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Old 08-01-2011, 08:52 PM
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Quote:
Originally Posted by BBallkid42 View Post
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.
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Old 08-01-2011, 09:09 PM
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BBallkid42 BBallkid42 is offline
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Originally Posted by rlee View Post
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.
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Old 08-01-2011, 08:54 PM
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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.
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Old 08-01-2011, 08:55 PM
RussellB RussellB is online now
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Old 08-01-2011, 08:56 PM
RussellB RussellB is online now
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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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Old 08-01-2011, 09:03 PM
RussellB RussellB is online now
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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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Old 08-01-2011, 09:24 PM
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rywnygc rywnygc is offline
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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.
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All the places I've been and things I've seen.
A million stories that made up, a million shattered dreams.
The faces of people Ill never see again and I cant seem to find my way home. "5fdp"

RIP SFC Hall, SGT Forest, CPL Pautsch.I will never forget you guys!

I am the Infantry! Follow me!
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