Starting my own business

[eeboater]

After reading through ndemge's thread regarding taxes and small businesses.. I realized there's a bunch of people who actually own their own businesses here. So I have a question for you:<br /><br />My 40-hour-a-week job is being an IT director of a mortgage company. As a result, I have a lot of "street credit" where people are always asking me to do repair work on their computers outside of work. My employer does not care that I do this since it does not conflict with their business.<br /><br />The requests have picked up to a frequency that I think I should make it legit and start my own business to handle the requests. Does anyone in here have their own Sole Proprietorship? Would that be the best way for me to go? Keep in mind I get on average 2 requests a month for computer repair. So it is not as if it is a BOOMING busines, but, there is something there. <br /><br />The main reason driving me to go legit is Uncle Sam. Eventually, he's going to start complaining that I'm generating income that isn't "recorded".<br /><br />Anyone have any advice?<br /><br />Sean

 

[NYMINUTE]

Re: Starting my own business

I have done cash only work for years, it has no paper trail for Uncle Sam to trace. My work is not a tax deductable service to those who use it. What the weasles in DC don't know, won't hurt them.

 

[deputydawg]

Re: Starting my own business

Do you charge for it now?<br />I found with my shop that as long as I did it for free to friends, or cheap I had a lot of work. Once I opened for business my work load dropped. I was no longer the dude out in the country helping people out. Now I was that mechanic that did good work and stood behind my work.

 

[thedude7803]

Re: Starting my own business

My advice to you would be to contact your local CPA/tax provider for advice. Maybe even an attorney. I know it sounds extreme for the amount of business you plan on doing, but their are a few reasons I say this. Tax law is quite complex (I am a CPA myself), and depending on how you set up your business, your tax liability could vary significantly. Also, from a legal standpoint, how you set up your business can greatly effect your personal liability. You must be careful when starting your own business, as people seem to enjoy frivilous lawsuits. You may want to consider getting insurance as well to protect yourself. <br /><br />If all of this sounds like too much work, you can simply keep track of everything yourself and simply fill out one extra tax form (or have your tax preparer do it) and be done with it. My only caution would be that if you plan on writing off any expenses, keep every and all receipts for at least 7 years. <br /><br />Good luck.

 

[ndemge]

Re: Starting my own business

I had thought about doing computer repair as a side business, (but enjoy blowign stuff up more)<br />I would at least do an LLC to help protect your own assets if you were sued...<br /><br />Say you go to someone's house to work on their computer, in the process, you end up deleteing their ONLY copy of the college Thesis, They are stupid for not having a backup, but the lawsuit will probably find you liable... that's how peopel are. Friends are more forgiving that joe-blow

 

[gonfishn]

Re: Starting my own business

Many here know I just started my own Bedding Manufacturing factory and will be selling alot of Amish Furniture..<br /><br />From an Accountants standing LLCs are the way to go. I went this way because of the liabilty and by doing this you don't have to follow the true corporations strict concept..<br /><br />If your business lets say will be doing over 300g a year get an accountant until you get the hang of things..Quickens is a program that will take care of all your business needs..<br /><br />Tax rules change constantly. Thats what gets most folks in deep dodo with Uncle Sam. My accountant gets about 10,000 a year from me..He keeps my PNLs up to date and lets me concentrate on my business..<br /><br />There are alot of write offs that an accountant can help you at the end of the year..<br /><br />Skimming the books with a small business you may get a way with it for a while..Let them bust you and they can go back seven years and then you had better have every receipt..An IRS audit is a night mare..<br /><br />A curve study shows that many new businesses fail because of loose pay records and not doing your home work before you get started..<br /><br />This my second bus. adventure..Make sure you have enough working capital..My store start up is well over 65,000 not counting my factory costs..Have enough backup money so you can pay your bills for at least 3 months. Sorry so winded here.. Email me if you have questions and I probably won't have the answers..lol<br /><br />Serious though if ya have questions i will try and work you through it if possible..My llc docs. are 20 pages long with all the do's and dont's and I spent almost 1500$ on this last one...My first one cost me less than 500..