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  #71  
Old 02-11-2014, 04:15 PM
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unkownfl unkownfl is offline
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Quote:
Originally Posted by zabmasonry View Post
Have to pay Self Employment Tax on anything over $400 http://www.irs.gov/taxtopics/tc554.html. minimum deduction will cover the rest.
Yes but why underpay when you would be eligible for EITC?
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  #72  
Old 02-11-2014, 04:23 PM
zabmasonry zabmasonry is offline
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I'm not an accountant. My understanding of the tax code is that you must file a schedule C and a schedule SE if you have business income over $400, regardless of the situation. I would advise the OP to contact an accountant to contact an accountant.
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  #73  
Old 02-11-2014, 04:29 PM
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unkownfl unkownfl is offline
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Quote:
Originally Posted by zabmasonry View Post
I'm not an accountant. My understanding of the tax code is that you must file a schedule C and a schedule SE if you have business income over $400, regardless of the situation. I would advise the OP to contact an accountant to contact an accountant.
Yes you're going to do a profit loss statement. Technically it's deductible. Just at what point do you want to take it or count more as income will depend. You may have to enter in your taxes a few ways and see which is best for you. Making 1500-2000 a year I'd forgo the insurance route or whatever and opt to LLC. don't go S corp taxing on your LLC until you earn enough income to make it worthwhile. The LLC will separate you from your business and the liabilities of either being mixed. Get a good auto policy and make sure you have business use. I think the auto issue will be your biggest risk and you need it anyway.

Going to be an ABET EE I think you should be able to compute a few different return forms. I know it has to be easier than DofE.
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  #74  
Old 02-11-2014, 05:29 PM
zabmasonry zabmasonry is offline
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I don't think that an LLC negates the need for insurance in any way shape or form. In fact, if you had an incident and weren't insured, a plaintiff could probably pierce the LLC by claiming that the owner was negligent in not having insurance. What an LLC does do is protect your personal assets from business losses (other then the bank, they usually get whatever they want)
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  #75  
Old 02-11-2014, 05:38 PM
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unkownfl unkownfl is offline
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Originally Posted by zabmasonry View Post
I don't think that an LLC negates the need for insurance in any way shape or form. In fact, if you had an incident and weren't insured, a plaintiff could probably pierce the LLC by claiming that the owner was negligent in not having insurance. What an LLC does do is protect your personal assets from business losses (other then the bank, they usually get whatever they want)
More talking along the lines of separating himself from his parents. It does offer some level of protection depending on how it was ran.
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  #76  
Old 02-11-2014, 08:08 PM
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Jcl4slc Jcl4slc is offline
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I carry a million dollar liability policy from Nationwide Insurance for 435.00 a year. There is not a huge difference in price for 100k to 200k to a million. Most commercial require a million so why would anyone get 100k liability?
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  #77  
Old 02-11-2014, 08:52 PM
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JonesLawnCareWV JonesLawnCareWV is offline
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All this talk about the various tax forms definitely has me leaning towards NOT filing taxes on my own at the end of this year. At least for the first year I will probably go to a company to have it done to ensure I'm getting the right forms filled out. I've asked a few of the insurance agents about the situation of separating myself from my parents; some of them said they are not sure but the majority said because I'm a legal adult and only live WITH my parents, not UNDER SUPERVISION (as in, younger than 18) of my parents, that there should not be any chance of them being pursued. Regardless, I'm looking at picking up a $1 million dollar General Liability w/ $2 million aggregate. I feel like that should keep me covered in most cases considering something drastic does not occur. And as of right now, I don't see myself doing much damage with a push mower. And when I do pick up a Walk behind, it would be a very rare occurrence for me to use it without the deflector on it; If there isn't a deflector on it, there will be a catcher on it or it will have a mulch kit installed and no chance of discharge regardless. However, I know there's always a chance that something may happen. Situational awareness will be my biggest factor; I'll refrain from cutting around children in general. Last year, I had an client with kids who were always outside. It only took me 30 minutes to do the yard, so when I'd show up I'd kindly ask the kids to take a break and go inside for just a short bit while I took care of the yard, and they usually didn't have an issue (however, I did have to move their bikes out of the yard on multiple occasions!). Will also try to refrain from acquiring clients that have gravel areas (seems like an accident waiting to happen mowing a yard with gravel around or near it).

My biggest setback right now is that I can't put out my advertisements like I had wanted; I don't want to pass out several hundred flyers while still attending this semester at school because I will only have 2 days without class that I can work. I would be able to work from 3pm to dusk on school days. Therefore I have somewhere around 30 to 35 cut hours per week while attending school. Once my semester is over, I'd love to build up enough clients to work 50 hours a week, however I know that will be tough because i'll be trying to pick up clients after the other local LCOs have already passed out their flyers.

The way my season is going to go at this point is completely up in the air. The more I sit and read, and the more I think about it, the more difficult I realize it will be. As I've said multiple times already, I'm going to push the business this season regardless, If I end the season with a poor amount of gross pay, then so be it. As long as I am not in the negatives, I will be satisfied with myself and the determination. At that point I will make the decision to renew the business license or withdraw it.
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  #78  
Old 02-13-2014, 11:18 PM
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JonesLawnCareWV JonesLawnCareWV is offline
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So I have two decent quotes on $1mil/$2mil aggregate. Both around $440 give or take a couple dollars. One has no deductible (Nationwide), while the other has a $250 deductible (Keiger). My assumption would be to go with the Nationwide offer that has no deductible. Especially considering I would easily pocket out $250 before making a claim anyways. I know a claim will make things skyrocket, so if I had the cash to cover it, I'd likely do that anyways. That's with reference to small claims anyways. Thoughts?
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  #79  
Old 02-14-2014, 09:15 PM
mlavin73 mlavin73 is offline
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Here's my advice on the original question about insurance. I would not operate a business without it. A little bit about me. I started my business in 2007. I was fulltime until the end of 2008 and reduced it down to part time when my wife had our daughter. Next year when my daughter starts kindergarten I will be back at it full time. Anyway in 2009 I get a call from a constable in regards to serving me paperwork for an accident I was being sued for. I had never been in an accident so I was a bit confused and forwarded the information to my insurance company. Turns out one morning there was an accident in front of one of my accounts. I was no where near the place at the time. To make the story short, a kid pulled out of a lake community and caused a 3 car accident. The person who was most seriously injured sued the kid who caused the accident and his insurance only covered him to $500k. The injured party decided to sue the development the kid pulled out of as well as 4 or 5 other businesses. They claimed my piece, was the property I maintained partially obstructed the vision of the highway. It was a ridiculous claim since there is a 12 foot wide strip of grass prior to the entrance of the road. I had to go for depositions, etc. It turns out all the other businesses pooled together another 500K to settle it out of court. My insurance company paid out 20K on my businesses behalf. The bottom line is this. I pay roughly 2K a year on my business liability insurance (which covers liability $1 Mil / $2 Mil, all my equipment and my residential snowplow coverage). The insurance company lawyer had worked this case for about 2 years. If you look at what they spent in lawyer fees, plus the settlement amount.....it is more than the 2K I have sent them every year for the last 7 years. In my opinion insurance is too cheap not to have. Protect yourself and get insurance.
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  #80  
Old 02-14-2014, 09:25 PM
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JonesLawnCareWV JonesLawnCareWV is offline
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Quote:
Originally Posted by mlavin73 View Post
Here's my advice on the original question about insurance. I would not operate a business without it. A little bit about me. I started my business in 2007. I was fulltime until the end of 2008 and reduced it down to part time when my wife had our daughter. Next year when my daughter starts kindergarten I will be back at it full time. Anyway in 2009 I get a call from a constable in regards to serving me paperwork for an accident I was being sued for. I had never been in an accident so I was a bit confused and forwarded the information to my insurance company. Turns out one morning there was an accident in front of one of my accounts. I was no where near the place at the time. To make the story short, a kid pulled out of a lake community and caused a 3 car accident. The person who was most seriously injured sued the kid who caused the accident and his insurance only covered him to $500k. The injured party decided to sue the development the kid pulled out of as well as 4 or 5 other businesses. They claimed my piece, was the property I maintained partially obstructed the vision of the highway. It was a ridiculous claim since there is a 12 foot wide strip of grass prior to the entrance of the road. I had to go for depositions, etc. It turns out all the other businesses pooled together another 500K to settle it out of court. My insurance company paid out 20K on my businesses behalf. The bottom line is this. I pay roughly 2K a year on my business liability insurance (which covers liability $1 Mil / $2 Mil, all my equipment and my residential snowplow coverage). The insurance company lawyer had worked this case for about 2 years. If you look at what they spent in lawyer fees, plus the settlement amount.....it is more than the 2K I have sent them every year for the last 7 years. In my opinion insurance is too cheap not to have. Protect yourself and get insurance.
Good example. Thanks for the input. Like hearing the various ways someone can get money out of a company that had no part in an accident! Good to know that I can get sued even when I didn't do it!
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