Originally Posted by dhardin53
Kevin, crawl before you walk or run a marathon. First things first. Going legit is a fine aspiration, ok starting off with a drivers license is good, but jumping to a LLC is a little over the top to me. Not that it will be something for you in the future. For now get a Liability policy and some Commercial Insurance on your dads equipment (truck and trailer) your using.
I love your approach, I was young once too but reallity is your a minor. Minors may buy a car with cash in some places but you cant get a licence tags for the truck or insurance being a minor. You will need your fathers/guardian signature or in his name till you become of age.
A long debated issue here is going legit and everyone has their opinion and approach. But my advice for you is to look into the local laws and regulation for setting up a business. Do you need a business license with your city or state? Make a plane to aid your father in getting a General liability insurance and Commercial insurance on the truck and trailer? Then the hardest of all is structure your IRS/Social Security, Self Employment payments. Basically this means KEEP all your receipt of expenses and to hold back a portion of you income as it comes in for paying your taxes.
Sad but so true today in the eyes of the Government and the Courts today if you have not paid in your not on the record/legit. Like some churches If you don't put money in the collection plate your not a member your passer by. No one want to pay taxes (me included) but the truth is if you don't set up some kind of business tax plan as soon as you have 2 extra nickles to rub together your putting off very large problem from the start.
Regardless if your business venture is for a short term easy cash or something to do till something better comes along, not a problem. But if you don't make some kind of plan to have some thing withheld and paying something to the the Government your just missing out. The tax issue is very controversy among LCO starting out. Many say Ill start paying in later and never do. Its to easy to work hard and just keep it all for yourself. But paying in your fair share is a huge step in going legit in my opinion.
Sorry i don't mean to throw water on you or anyone that has a different approaches to going "Legit". I'm looking at the bigger picture.
Thanks for the great advice. I have decided to become a Sole Proprietorship. I only need to do a Occupational Licence ($75) and a Trade Name ($27) then I will be legit. The only problem is I am more liable then I was earlier. And for taxes, I can just fill out a Schedule C on my 1040. But now I got a new question, can I sell my equipment to my Sole Proprietorship and write it off?