Diving in head first...

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ev_g35

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Well long story short my car was very neglected and looked terrible, i spent $150 on a hf da polisher and a few things from AGO. Did a with swirl remover, klasse aio polish and sealant, coated with butter wet wax. It looked damn near brand new for a 12 year old neglected car, in a total of maybe 5 hours (first time). Started showing it to all my friends and they want theirs done the same way. I just used the klasse aio on there with a orange or white pad depending on the condition. It just came natural to me when i started detailing, as i am a mechanic from 8am-5pm.

I started digging into part time detailing business and researched the hell out of it for a month and half. Picking up my business license application tomorrow morning. Went ahead and started a facebook page for my business and came up with a simple yet remember-able name, Tullahoma Auto Detailing, which tullahoma is the town of which i will be doing business in. There is currently only one person in my town that has a Detail shop (according to google and Facebook searches).

Anyways back on topic, i am applying for license, ordered 500 business cards which i will post at the bottom, get fein number, order a few products.
In the beginning im thinking about just going to every gas station in town setting out 20 business cards, the 2 country clubs, and driving everywhere with magnets on my car advertising. Once money starts coming in ill pay facebook the bs 20 dollars a day for a month or so. Do i really need google ad service i want majority of my business to be word of mouth, by business card, etc.
I will also plan to use square for sales and everything, but does square have calendar or schedule?

Where i get all confused at is on taxes, i want to do this right and not jeopardize anything while making money. Do i need to sit down with an accountant or what?

 
Price list

Hows my price list looking

Wash - $40-$50
- Wheels Cleaned
- Hand Wash
- Tires Shined
- Exterior Windows Cleaned


Wash & Wax - $65-$75
- Hand Wash
- Wax
- Wheels and Tires Cleaned
- Tires Shined
- Wheel Wells Cleaned


Complete Exterior - $120-$140
- Hand Wash
- Clay Bar
- Polish
- Wax
- Wheel Wells Cleaned
- Wheels and Tires CLeaned and Shined
- All Exterior Windows


Basic Interior - $35-$45
- Vacuum
- Dash Cleaned and Dressed
- Door Jambs Cleaned and Dressed
- Windows Cleaned


OTHER SERVICES
- Engine Clean and Dressed $30
- 3 Step Paint Correction $$Call for Estimate$$
- Leather Cleaned and Conditioned$$Call for Estimate$$
- Headlight Restoration - $20 per light
 
It's never a bad idea to let an accountant give you some advice when starting out. As a CPA, I know the hot water that people with the best intentions can get into. A consultation with a CPA is a cheap investment in your business and they can probably make up more than their fee in additional deductions you haven't though of.
 
JarrettF said:
It's never a bad idea to let an accountant give you some advice when starting out. As a CPA, I know the hot water that people with the best intentions can get into. A consultation with a CPA is a cheap investment in your business and they can probably make up more than their fee in additional deductions you haven't though of.
Click to expand...

Thank you, yes I have a buddy who is an accountant so I set up meeting with him also, I had a meeting today with a lady at the city hall. I went ahead and got my fein #, got applications for city and county license. I think im going to start out with a minimal activity license, the reason why is because I highly doubt I will make 10,000 this year considering I have a 8-5 job already. Plus, it only cost $22 a year for the license.

I really need this meeting with an accountant though to answer my unfulfilled answers lol.
 
Here is my personal take on this.now that you applied for a fed number you are tagged.you should of waited to build up a clientele.Doing this part time will take some time to build.maybe you can sell your services from your full time job.Talk to your acct every state is different.In fla you don't pay tax on car wash only a product that stays on the car such as wax.acct would be wise,however your first year or two you can show a loss when filing check that with acct.skip the the basic interior service and convert it to interior detail and bump up price and stay away from engine washing.also headlights you need more money.
 
I think choosing your business model based on one service being taxable vs another non-taxable is a poor decision. Also, I believe you're talking about sales tax, which isn't a factor for a business owner as the customer covers that portion. Some states do have odd sales tax rules, but most are pretty straight forward. In my state, any of these services would be considered non-taxable unless your main focus is providing a product, which I don't see. Car wash, detail, wax, correction, headlight restoration, all would be a service in my neck of the woods.

Claiming your business income/expenses when you don't have clientele may actually provide tax benefits in the beginning when you're not making much money. And if it's a legitimate business, there shouldn't be any issue with the IRS calling it a hobby and limiting deductions as long as you can show intent to make a profit (business cards, website, facebook, capital expenses, etc).

Just my .02.
 
You don't need a google ad service...BUT just b/c you hand out business cards and put up a website even with google ads doesn't mean customers are going to fall out of the sky.

First things first, you should think about what you're REALLY offering people. Fromt he looks of your cards you go to your customers. Do you ONLY go to their homes? What if someone wants you to come to their office or at the golf course? Your cards only say you come to their homes. I'd change that first.

As far as legalities and taxes, I unofficially suggest (b/c I'm not a lawyer or a CPA) that you register as an LLC...And also consult with a tax guy. If you can't afford to consult with a tax guy, I suggest you visit either a SCORE or SBDC (you can google either one to see if they have someone in your area). They're free small business consultants and can help you navigate the tax space as different states, cities, and counties all have different tax requirements. In the meantime SAVE EVERY RECEIPT, keep track of every sale, and find out if you need to charge sales tax (some states do and don't require such).

Additionally, I suggest you have a customer loyalty and referral program from the start. This helps you retain customers who chose to use your service and get more customers as you grow. This will cut down on your marketing costs down the road.

If you have anymore questions feel free to ask here or send me a PM.
 
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