Ready to open a business.

[Comment]

I've been learning all over the place for 3 months, I've designed a website, I've gotten a bunch of supplies, and I think I've gotten mostly everything ready except for opening.

 

My problem is I cant get a final answer from anyone as to rather I need some sort of a license or not. People tell me I need a DBA or an LLC or some sort of business license, but I'm not sure what kind or if I even need one.

 

Anyone? I'm in Florida.

[Odds and Ends]

You will almost certainly need a business license for whatever jurisdiction/county you're in. You'll also want to register a trade name with that same jurisdiction, which will then entitle you to use a DBA name. As far as incorporating, sole proprietor, LLC, etc, that is up to you as to how you want to structure things. There are tax implications as well as liability and insurance things to consider when deciding which business structure to use. Your county government website is a good place to start as I'm sure they have a FAQ about how to setup a new business.

 

- Darryl

[Comment]

This is the first business I've ever started. I'm planning to detail by myself for a while, but maybe in the future hiring other people. I'm pretty sure a sole proprietorship would suit me better than an LLC, for now atleast?

[Marylander]

Consider your goals... while a sole proprietorship may seem right now, if you anticipate having a shop, a receptionist and maybe a few guys working for you, it's better to set up as an LLC or whatever now. It's also worth the time or bucks to talk with a CPA or lawyer to discuss the options -- doing it right can mean big tax advantages and options when it comes to setting up retirement plans, etc. You'll also want to look at insurance since you'll be putting your hands on some expensive cars. Heaven forbid something gets banged up or the paint damaged while in your care. Things happen. And if your business is set up right damages can be limited to the company. If you're set up WRONG, someone could sue you and go after your personal property, your house, your marital assets, ect.

 

All that said, though, don't let it scare you -- being self employed can be hugely satisfying and very rewarding.

[3PedalMINI]

:iagree::iagree::iagree::iagree:

 

Doing cars you want some type of "protection". LLC gives you all the benefits of being a sole proprietor (being able to file business taxes along side of your personal) but gives you alot of the protection being incorporated can (there is liability in "cleaning" cars, probably more then what you think). Being small and possibly wanting to hire people in the future you want a "true" business structure. And, if the local government finds out your not registered/have the proper licensing you are pretty much SOL.

 

There are a ton of websites that post structures/how to start a business. one of the biggest is i suggest you truely sit down and write a business plan (even if its a hobby business for now) You need to have a plan to stick to and gives you something to follow along instead of winging it. Its one of the major hurtles (except for cash) that new businesses face.

 

There are tons of SBA (small Business Association) sponsored events around the country, No offense but being how "clueless" you are it would be very beneficial for you. They will help you tweak your business plan, possibly find funding and explain to you which business structure fits you. Ive been a small business owner for close to 5 years now (im 21) and started off just as clueless as you. A year later I closed shop for three months and reopened with a business plan/incorporated.

 

Seriously, before you even go and find a customer write a business plan. And above all make sure you get the proper licensing, make sure you have no EPA laws etc. I am here to help you out, feel free to shoot me a PM.

 

Click and read in depth each and every one of these. then google some more. Also, you need to make sure you "limit your liability" by getting a contract for your customers to sign so they know exactly what to expect when you finish. This will keep the a$$holes from walking all over you. Also, make sure you get an outlined picture of a car and walk around it before you even get handed the keys. Make sure to point out any dents,dings scratches that you wont be able to fix. (kind of like what enterprise does when you rent a car)

 

http://www.inc.com/guides/write-a-great-business-plan.html

http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/thinking-about-starting

http://www.residual-rewards.com/business-types.html

http://www.irs.gov/businesses/small/index.html

http://www.irs.gov/businesses/small/article/0,,id=98810,00.html

http://www.entrepreneur.com/howto/startyourbiz.html

[Comment]

Alright, I've read all that, but now I have a new problem. In Florida you must be 18 to form an LLC, and I'm 17. So now I have to decide if it's worth it to start a sole proprietorship and hope I dont get sued till I turn 18..

[3PedalMINI]

Haha, yeah i had the same issue in NJ when i started my business, except i was clueless and just chose SP...i was fortunate, as in my line of work I have extremly high liability (i do home theaters, audio video system's Home automation/integration) so you can imigine how vulnerable I was.

 

2 years ago i had a customer/job from hell (none of it my fault) he was an A$$hole and the only thing that kept him from suing me was knowing he couldn't get anything because i was incorporated. I recently found out why he was such a D-Bag, court settled and he was forced to pay 3.2 million to a failed business that him and his previous partners had started, his marriage was failing and his new business was collapsing due to the economy. He used me as a scapegoat, and if he could have would have sued me.

 

I doubt you'll run into someone like i had, as long as you have a waiver/contract you should be fine, just as soon as you turn 18 have the paperwork ready and file it all on your 18th birthday.

 

Or, maybe your parents could "sign" the paperwork as part owners and let you run the company with 95% of the shares. Then kick them out once you turn 18?

[Comment]

Haha, yeah i had the same issue in NJ when i started my business, except i was clueless and just chose SP...i was fortunate, as in my line of work I have extremly high liability (i do home theaters, audio video system's Home automation/integration) so you can imigine how vulnerable I was.

 

2 years ago i had a customer/job from hell (none of it my fault) he was an A$$hole and the only thing that kept him from suing me was knowing he couldn't get anything because i was incorporated. I recently found out why he was such a D-Bag, court settled and he was forced to pay 3.2 million to a failed business that him and his previous partners had started, his marriage was failing and his new business was collapsing due to the economy. He used me as a scapegoat, and if he could have would have sued me.

 

I doubt you'll run into someone like i had, as long as you have a waiver/contract you should be fine, just as soon as you turn 18 have the paperwork ready and file it all on your 18th birthday.

 

Or, maybe your parents could "sign" the paperwork as part owners and let you run the company with 95% of the shares. Then kick them out once you turn 18?

 

That's what I was thinking with the contract, but I cant sign anything without parental consent until I turn 18.. I could as my parents could sign, but then that turns into a huge mess down the road. I think my options are either start an SP and switch to an LLC or wait till I'm 18.

[3PedalMINI]

That's what I was thinking with the contract, but I cant sign anything without parental consent until I turn 18.. I could as my parents could sign, but then that turns into a huge mess down the road. I think my options are either start an SP and switch to an LLC or wait till I'm 18.

 

How much longer until you turn 18?

 

Honestly man, as someone that was in your position if i could do it over i would have started the preliminary parts of the company (saved money, wrote a business plan, attended SBA events etc) I was so overly confident/ ready to start a business i just jumped into it. Had started at 17 in depth researching, writing,saving money etc and opened when i was 18 i would be in a much much better position. Not that i didnt learn and thats what it comes down to but a business is 100,000 times harder then you think it will be.

 

Being over confident cloud's your judgement and can wreak havok for lack of a better word. Make sure your mentally and financially ready to start.

 

You can also use this time as your preparing to start getting the word out IE facebook,Word Of mouth etc. By the time your ready to start you will have people waiting on your doorstep. Get some Before and after pics of friends/family's cars, get your technique down now on people that wont sue you if you mess up, remember time is money so when your out there making money you need to have your technique down that provides the best results while still being able to make a profit while meeting/exceeding your customers expectations. If you do a good job you will have the ball started on your WOM, which is key to any business.

 

Your time is not free once you sign the IRS/Florida paperwork. untill then; it is:D

[Odds and Ends]

Switching from a sole proprietor to anything else is relatively easy. It isn't easy going the other way nor would you ever want to. I was driving home while all of the responses were being posted, but the advice here is sound. It's a huge amount of work, employees are a hassle, taxes suck, insurance is expensive, marketing is constant, and reputation is key, but I love it. Also, my detailing shop isn't my only business, so it really is a labor of love for me since I enjoy both trades that I practice professionally.

 

I think the best thing you have going for you is realizing that you should get it right from the start, ie, starting a legitimate business. There's nothing wrong with starting slow and doing things right. Good luck with everything.

 

- Darryl

[Chris@Adams]

Alright, I've read all that, but now I have a new problem. In Florida you must be 18 to form an LLC, and I'm 17. So now I have to decide if it's worth it to start a sole proprietorship and hope I dont get sued till I turn 18..

Good luck Comment!

[MAYBEN]

lots of luck my friend!

[SIDetailing]

Best of luck. Im in Florida as well. Tampa to be exact. It took me some time to decide what I wanted, so I went with an LLC. Now I started looking for insurance, because one your going to be touching expensive vehicles and 2 most businesses wont let you on private property without insurance. I looked around and the cheapest I found was high. Since im mobile I have no choice to but to pay it. So if I were you wait til your 18 and have money saved. Come up with a business plan. That's gonna help you a lot. Just jumping in and working isn't gonna last long.

 

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