Bonds, insurance, license

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RecurveTrail214

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Hey all

I got a question. Ive detailed as a hobby for awhile. But this spring im taking to the next level and doing a detailing side business. Im gonna start offering basics then move on from there. Ok to my question. What license, insurance and bonds do I need? Do i need them at first? How do you get them
Thanks
 
Keep it under the radar as a hobbyist.Then a year from now see were you are at.Then invest into all that.make checks payable to you or cash,or talk to a acct.
 
GSKR said:
Keep it under the radar as a hobbyist.Then a year from now see were you are at.Then invest into all that.make checks payable to you or cash,or talk to a acct.
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So basically just so detail for side money. But dont advertise as a business?
 
Yep. That's how I started. Going legit as a business takes some coordination and paying attention to the details. Check with your local county Small Business Administration office. Get some quotes for insurance. You will need at least 1Mil in liability and depending on how expensive the cars you detail, at least 75K in Garage keepers.

Searching the forum helps answer a ton of questions as well. Happy reading.
 
RecurveTrail214 said:
So basically just so detail for side money. But dont advertise as a business?
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you can advertise all you want.once you incorporate the irs now recognizes you.The first year you can show zero for profit.For a 1000 bucks cover yourself not worth it.
 
RecurveTrail214 said:
Hey all

I got a question. Ive detailed as a hobby for awhile. But this spring im taking to the next level and doing a detailing side business. Im gonna start offering basics then move on from there. Ok to my question. What license, insurance and bonds do I need? Do i need them at first? How do you get them
Thanks
Click to expand...

If you're touching someone else's vehicle, insure yourself. One little mistake and you're screwed if you don't have it.

Research doing an LLC. It's super cheap to start up a business(legally).

You need insurance though.
 
You only need a business lic or register with your city.
You should have ins. but it's not necessary and you don't need to be bonded.
 
StangFan25 said:
If you're touching someone else's vehicle, insure yourself. One little mistake and you're screwed if you don't have it.

Research doing an LLC. It's super cheap to start up a business(legally).

You need insurance though.
Click to expand...

What would this insurance actually cover?
 
From other threads ive read on this subject..I'm pretty sure it doesn't cover Strike through/burn through so seems like you're screwed either way? As that's the only real dmg I'd worry about when Detailing
 
Garage keeper insurance would cover you if you make a major mistake like starting a fire at a customer's house but as far as I know, no insurer will cover you for damage on a vehicle while performing detailing tasks like sanding or polishing. Since this is the only real danger I can see, I feel like it's a waste of money. Most on here will tell you that you need it but I think they don't understand the coverage. Either way talk to an insurance broker and see what protection they offer and at what price. If you are just starting out, I think you will find that it will be way too expensive for the profits you are gonna be making. Here in Montreal, the policy they offered me was about 200$ per month on a 2 year contract. So 1200$ per year. I would rather pay from pocket if I screw up than pay that. If you drive your customers cars for some reason, you wanna make sure you are covered for accidents though, but that is separate from a garage keeper insurance.

As far as licences, it really depends where you live. But I would not go without it. Here it's a provincial thing. Need to register the business with the government for the right to operate. That costs like 30$ per year. Then you need to register with the IRS to charge taxes. In the US it's probably different. Here, perceiving taxes allow me to deduct all the taxes I pay. So it would be stupid not to do it considering I pay a lot of taxes on products, equipment, gas, services and everything. Also allows me to make a ton of deductions for my vehicles and operating expenses. In my first years those deductions are paying for all my new equipment and products. That is very likely the same way in the US.
 
Everyone else's advice on licenses is spot on...check with a small business development center (SBDC), SCORE, or the Small business administration for your area. They should be able to walk you through that process.

As far as insurance and bonds, if you go without at first, it is a risk. But business insurance once you get yourself up and running will set you apart from the teenieboopers and other hobbyists detailing in your area. Also, certain high profile customers (corporate businesses, some dealerships, government, etc) require a certain amount of insurance and bonds for your business to even bid on working on their vehicles. If those are clients you want to target in the future, it would be a great investment. However, not having business insurance is not illegal.

ONE THING THAT's VERY IMPORTANT on this subject, is that if you're driving your car with a logo on it and you get into an accident going to or coming from a detail job, your personal car insurance will not cover the damage...even if it's not you're fault. I would suggest either speaking with your insurance company to get the extra coverage.
 
StangFan25 said:
If you're touching someone else's vehicle, insure yourself. One little mistake and you're screwed if you don't have it.

Research doing an LLC. It's super cheap to start up a business(legally).

You need insurance though.
Click to expand...

Tell me more

What would the insurance you are suggesting actually cover?
 
I seen a detailer put the car in reverse instead of drive,he had the drivers door open,stomped on the gas and basically ripped the door off and bent the whole door jam structure on a brand new town car.Not to mention building damage.so you might want to rethink insurance,could of been worse with bodily harm.Even working by yourself stuff happens.
 
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