Just purchased my LLC

B&B Tennessee said:
Congrats man! It is a big step...... I originally wanted an LLC - but my accountant talked me into getting incorporated (cheaper in the long run and easier to set up other entities under an inc.) You must definitely be serious cause it definitely isn't cheap! All I can say is to stay organized - with all paperwork and numbers, then get your taxes done by a pro! I knew a guy that tried doing his own business taxes and he said he messed them all up! But seriously, a big congrats bro!
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Your right that it's not cheap. But I bit the bullet and I'm willing to drop the money right now. We'll see how things go from here. But with a legit business now it opens up more ways for me to advertise without having to worry about getting myself into any type of trouble with the IRS or the state of MA.

Thanks to everyone for the congrats! It's a big step and I'm actually a little nervous but excited at the same time.
 
You are right about it opening doors man - now you can confidently go to companies with packages and get a steady amount of solid business if you prefer. When they ask "Are you licensed and insured?" You can say, "Absolutely, wouldn't do it any other way!" Good stuff man, very happy for you!
 
Yow that is expensive! I got an LLC setup for network consulting for free under an Intuit promotion. Not sure if they still run those promotions but they would take care of all the state filing, and all you had to do is get a tax ID from the IRS.
 
Thanks for the reply SeaJay. I am trying to stay out of trouble w/ the irs, and just get experience detailing other people's vehicles; it's one thing doing your own and not being on a schedule or worrying about damaging a 10 year old truck. Sorry I didn't congratulate you early. A lot on my mind as you can tell from my post. Anyway, congrats!:dblthumb2: I helped my dad when starting a small biz years ago, and helped him start an LLC about six years ago(doing performance engine work/heads). It is all tough and very stressful, so way to take the leap. Stay focused and like you plan and everyone is saying, use professionals for you taxes and whatnot. Just focus on making through the first two years and then you know you are established. AG is like one big personal advisor for a detail biz.:props:
 
Congrats, just wanted to let you know going to see your Sox in action on 3/8 here in Jupiter Fl.
 
ShaunD - you should join the social group, "Lets Help Each Other Succeed" - good stuff there if you want to build your business - SeaJay is officially a head honcho there now lol!!!
 
Congrats SeaJay, sounds like a solid year ahead of you. Smart moves take time.

And to help answer a question asked above that may not have been answered, you can run your business as a sole proprieter with a license and insurance without filing for an LLC. The LLC status just takes some of the liability off of your personal assets in the event that you are sued. If you have other employees working for you the LLC or Inc is a must.
 
VR8 said:
Congrats SeaJay, sounds like a solid year ahead of you. Smart moves take time.

And to help answer a question asked above that may not have been answered, you can run your business as a sole proprieter with a license and insurance without filing for an LLC. The LLC status just takes some of the liability off of your personal assets in the event that you are sued. If you have other employees working for you the LLC or Inc is a must.
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:iagree: This is how I had been doing it - but if you want employees or need employees a 1099 is in order to make any kind of profit........ say you have a month where you "made" 10,000 (to make it simple) and payed employees *cash* of 5,000 dollars...... in the end - you will get taxed 30 to 50 percent on the full 10,000 as if it was all profit to you. Which could very well mean that you pay all of your profit to the government.

Say you make 10,000 and pay 5,000 in employee *legal wages* - you still have to pay the normal taxes that associate with having employees, but you or your company only get taxed on the 5,000 as profit...... giving you 2500 + in Profit (before expenses other than wages). These are VERY rough estimates but you can see the difference here right?
 
Shiny Lil Detlr said:
Then how do you explain doctors with malpractice insurance? No insurance agent is going to look at them and say "here's your malpractice insurance, but remember if you cause damage/injury during the course of practicing medicine, it's not covered because you're running a business to practice medicine."

What good would any business insurance whatsoever be if it didn't cover you while you're doing what you're in business to do?
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My liability wouldn't cover paint burns, just personal injury or actual property damage to the client or their property. It's the additional garage keeper's insurance rider that covers any mistakes I might make like paint burns or me crashing the customer's car etc.
 
Thanks again for the congrats!

The reason I went with the LLC was to to indeed protect my personal assets (mainly my house!). I can't risk getting sued and looking everything I own. By having the LLC I can ensure that my personal assets are separate from my business.
 
SeaJay's said:
Paint correction - removing swirls, minor scratches, wet sanding, polishing etc. There is a risk that you can burn through the paint with a rotary or DA. Basically, any time I'm working with my polisher.

I'm working on getting insurance quotes right now and I will ensure that any mistake I make I'll have my butt covered. I'm very cautious when I work, but you never know. We are only human and mistakes happen. So, when and if that mistake happens I want to ensure that I have the insurance to fix my mistake.
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burn through with a DA? I don't think so.

congrats on the LLC though.
 
gofast908z said:
burn through with a DA? I don't think so.

congrats on the LLC though.
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I agree..... just kiddin, totally disagree - anything is possible man. You take a DA with some cutting pads and an aggressive compound on a thinned clear and pretty sure you can burn through it. So I will have to disagree with your disagreement and agree with Seajay..... Congrats again bro! Happy for ya :dblthumb2:
 
B&B Tennessee said:
I agree..... just kiddin, totally disagree - anything is possible man. You take a DA with some cutting pads and an aggressive compound on a thinned clear and pretty sure you can burn through it. So I will have to disagree with your disagreement and agree with Seajay..... Congrats again bro! Happy for ya :dblthumb2:
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That's how I look at it. It's unlikely to burn through with a DA, however it is possible. Just like Anthony said...a thinned clear and the wrong pad and compound could result in a burn through.
 
SeaJay's said:
That's how I look at it. It's unlikely to burn through with a DA, however it is possible. Just like Anthony said...a thinned clear and the wrong pad and compound could result in a burn through.
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I agree Jason..

The question of burning through the clear coat has come up in the past but I think it needs some clarification.

Burning through the paint is a term that comes from the days of the rotary polishers. Wool pads + compound + rotation = friction.

When surfaces in contact move relative to each other, the friction between the two surfaces converts kinetic energy into heat. This property can have dramatic consequences, as illustrated by the use of friction between pieces of wood to start a fire. Another important consequence of many types of friction can be wear, which may lead to performance degradation and/or damage to components.


Dual Action Polishers


In my opinion a dual action polisher will not generate enough friction to burn through paint. What it will do with an aggressive pad combined with a heavy compound and held in one position is sand the thin clear-coat film enough so that it breaks through leaving the color coat exposed.


Just my opinion of course..
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BobbyG said:
I agree Jason..

The question of burning through the clear coat has come up in the past but I think it needs some clarification.

Burning through the paint is a term that comes from the days of the rotary polishers. Wool pads + compound + rotation = friction.

When surfaces in contact move relative to each other, the friction between the two surfaces converts kinetic energy into heat. This property can have dramatic consequences, as illustrated by the use of friction between pieces of wood to start a fire. Another important consequence of many types of friction can be wear, which may lead to performance degradation and/or damage to components.


Dual Action Polishers


In my opinion a dual action polisher will not generate enough friction to burn through paint. What it will do with an aggressive pad combined with a heavy compound and held in one position is sand the thin clear-coat film enough so that it breaks through leaving the color coat exposed.


Just my opinion of course..
​
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Thats what I was thinking... you said it MUCH better lol.
 
Congrats Seajay! After reading couple pages, I'm getting a bit worried. I'm going be doing a lot of side job detailing and I do not have insurance. I know that sometimes there might be an accident and don't know what to do if someone tries to sue me. I'm only using DA for now until I have little more cash flow to buy a rotary. Using DA shouldn't be too much of a problem because its much more gentle then a rotary. Its a good thing I have a aunt who does taxes, I got one less thing to worry. :)
 
Hey SeaJay,
Congratulations on your success!! Now the opportunities are endless with LLC in your corner. It will pay itself seven fold with all the new clients/business you'll accumulate in the coming years. Again Congrats! :xyxthumbs:
 
Did you hire an attorney to help set up your LLC or did just take care of it yourself?
 
I went to LegalZoom and did it through them. I'm still waiting on all my final paper work. It's suppose to be finished by the end of this week. I do plan on speaking to a tax attorney in order to ensure I'm keeping track of the right things, and what I need to show in order to deduct business expenses.
 
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