Yes you want to keep up with the income. There is a chance you *may* get away with it, being as the IRS rules are generally that if someone doesn't pay you more than $600 a year they don't have to file on you. That being said, if you make anything you need to report it. That doesn't mean what you make will ultimately be "taxable income".
If you keep up with all your expenses, all your electric bills, gas bills (for the pressure washer) all your supplies. Then don't worry about actual expenses for your vehicle, just keep up with mileage and claim mileage expenses. Write down on the calendar each day where you go, how far, and total it up.
Once you total up all your income, then subtract all your expenses, whatever is left is "taxable income".
As far as you and your buddy. A good rule of thumb would be the business gets half of everything then you and him split the rest. Take a $100 sale, throw $50 into the business then both of you split the other $50. ALTHOUGH... in the early stages you will have substantial expenses that can be the entire $100.
Also, when starting the business you'll have initial "owner cash contribution". Whether that's real cash from buying supplies, or stuff that you've put on a credit card. The business WILL NEED TO PAY YOU BACK.
Get a bookkeeping system, whether it's something as simple as Quicken or Microsoft Money or as advanced as QuickBooks (which is awesome btw, but REALLY expensive for a start-up, part-time business). You really need to have software keep up with your business though as that's just something else you don't have to do. Do a quick log on and it'll download all the latest data from your bank.
Speaking of banking, go to the IRS website and file for a EIN, Employer Identification Number. That's the TAX ID you'll need for vendors and your bank. If your family has been banking with the same bank for a long time they MAY be willing to let you open a business checking account without a business license, as long as you have the EIN. Just explain to them that it's a part-time, summer business and you're a student. Banks generally will work with you on stuff like that. (I hate paying cities and counties their predatory fees for licenses, but that's just me.)
Insurance has been mentioned. YES it's a good idea, but many have said they'll work without it. Depends on who you're working for, and IF you NEVER have anyone come back to you wanting you to pay for damages.
For instance; Last weekend (Mothers Day weekend) my wife and I worked on one of my doctors vehicles, a Lexus LX470. We spent 7 hours together (14 man hours) just on the interior, plus I had another 7+ washing and doing an AIO (Megs D151) on the exterior. Overall that's about 22 total hours into the vehicle.
When we picked it up, the left rear roof rail cover piece was missing, and I noted it on the Mike Phillips Vehicle Inspection Form, along with all the other assorted items on the exterior. When we delivered it back to the doctor he wasn't at home, but his wife was (it's her truck). That was Monday... and he called me when he got home asking if perhaps we had *misplaced* the part at our shop. I told him we would have never removed it, and I noted it on the inspection form. Thought that was that.
Come Friday he called me and asked if I had INSURANCE because his wife is "very upset about the missing part". I told him that insurance would not cover that anyhow because it is less than the deductible. And he was of the mind that he'd just call his next door neighbor (his State Farm Agent) and file a claim. I told him that he would still pay for the part because unless he had a ZERO deductible that he would indeed be out of pocket.
At that point I could tell he was somewhat frustrated, although more at how to get his wife to STFU rather than at us.
And I told him I'd check into it and get back to him as I have accounts at several car dealerships and would be more than happy to pass on my discount to him.
With just a little searching it was VERY EASY TO DETERMINE that the roof rail covers fall off those trucks, ESPECIALLY WHEN YOU DRIVE THEM THROUGH CAR WASHES! (As that black Lexus had been done over and over again.) It was also easy to find the part, part number, and a price. So I called him and told him I could get it at the Lexus dealership (it had to be ordered) and what the price was and asked how he would like to proceed. At that point if he wanted me to order it (on my dime) then I'd need his card number to charge him for it. He said he would pay for it and pick it up so I said I'll call him right back with a delivery date. Quick call to the Lexus parts counter (because I needed to setup ANOTHER wholesale account with them, just for that part) and told the guy the situation and that my customer, (the Doctor) would be coming by to pay for it. Very easy to handle at that point, and he ordered it without needing my business card.
The moral of that story however is had I needed to file an insurance claim to satisfy the guy, and not had insurance then it'd been a problem. Even though insurance would never have been involved due to the price at less than $70. Yet if a customer pushes it, they'll insist on your insurance information. One way to protect yourself there is don't have anything business related in your name. No cars, no property, nothing. This is where a LLC pays for itself then thousand fold. They have to file suit against the company, not you personally, (although at some point they may try to come after you, but if you own nothing any decent attorney would tell them it's not worth it to come after you as an individual).
Insurance can run from a few hundred a year to several thousand. Just depends on what coverage, and what deductibles. :dunno: This is something you'll have to weigh out your risk and odds and figure if you're willing to foot the bill should something come up. Like I said, some go without it and do just fine. I know there was NO FREAKING WAY I'd ever had let that turn into an insurance claim, NOT AT ALL!!! Would be very safe to set aside $500 and not touch it as your "self insured" account. When and if someone comes up with something it's often easier to just pay them than let it escalate to something that could cost you down the road.
Pricing for jobs....
My lowest price (other than the "Basic Wash & Wax" which is as basic as it comes, and starts at $40, when they COME TO ME) is what I call an "Basic Exterior Only" starts at $150. It is a fairly thorough exterior job (although not the most extreme) and includes claying or Nanoskin-ing but DOES NOT include any buffing. There are options that can be added, such as a single stage AIO buffing or even a dual-stage package ($75~$125). The thing is, by the time you add the AIO ($50~$75) and just one more 'add-on' its more cost effective to step up to the Level 2 Interior Exterior Detail, (starting at $275) which does include an AIO buffing and a sealant or wax of customers choice.
Or they can, if they want interior and exterior (but still no buffing) opt for the Level 1 which starts at $220.
Be careful about your wording and DO NOT tell people they are getting a "Full Detail" as they'll come back at you expecting a full buff or paint correction and sealant, waxes, you freaking name it.
rops:
How's that for an "away at college experience"? Now he wishes he'd applied to UCLA and he's been AT HOME! 
