Just purchased my LLC

SeaJay's

SeaJay's

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Well, I decided to take the plunge and get my LLC for my part time company. I figured that I needed to do it since I'm now offering paint corrections. In the event that I make a mistake I want to ensure I have some insurance to cover my butt. I am only human!

So I have to wait 10 business days for everything to be filed and to get all my numbers and info.

I'm pretty excited about it since this is the first step in getting my business up and running full time.

All I can say is that Mass is a complete rip off for getting this stuff done. Any other state it would have cost me almost $500 less than it did here.
 
Jason,

Congratulations and Welcome to the Communist Republic of Massachusetts..
 
Could you guys expand on what you mean when you say insurance and you are getting into paint correction? The guy I'm talking to is saying it would only cover if say I dropped something on the hood and made a dent......
 
jonn127 said:
Could you guys expand on what you mean when you say insurance and you are getting into paint correction? The guy I'm talking to is saying it would only cover if say I dropped something on the hood and made a dent......
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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.
 
Well see thats what I thought. my insurance guys remark is

"The reason it’s not covered is because you are running a business to detail cars. so if you damage them in the course of that work, no one would want to insure you. Make sense?!"
 
Congrats man. Ive been thinking about doing a LLC too this would be the last step for me to be official. I'm only doing it part time too. How many cars a week are you detailing to justify going LLC.
 
jonn127 said:
Well see thats what I thought. my insurance guys remark is

"The reason it’s not covered is because you are running a business to detail cars. so if you damage them in the course of that work, no one would want to insure you. Make sense?!"
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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?
 
rbss said:
Congrats man. Ive been thinking about doing a LLC too this would be the last step for me to be official. I'm only doing it part time too. How many cars a week are you detailing to justify going LLC.
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Right now I'm fairly slow. But once spring comes I'm doing any where from 3-8 cars a week. But I plan on doing a lot more advertising this year so hopefully I can increase that number. Being part time is going to hurt me a little on that, but I'm willing to work 7 days a week and whatever hours I need to do it.

My main reason for doing it is I have the extra money right now. I want to advertise and I want to get a website going. Instead of doing all of this with a business that isn't licensed or insured and risk getting myself into trouble with either a client or the IRS, I figured just do it! I've been holding off on doing it for quiet some time but decided that I needed to do it if I am going to really try to ramp up my business to make it full time.
 
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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Exactly!
 
Sounds like your off to a great start! congrats agian.
 
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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LOL, perfect comeback. Thanks, maybe he misunderstood me or something, although I'm not sure how.
 
Congrats! I got mine actually one year ago from Thursday. Big step right there.
 
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.
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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:doh:I wish I had insurance right now, as I just went through a spot on my neighbors bumper(through the thin clear and started getting red paint on my pad). I am not even established as anything yet and already making a bad name for myself. Thinking I should hold off using any power tools:nomore: around other people's vehicle until I establish a business and/or get insurance. Find out if he wants it fixed tomorrow. Guess I won't be getting any money from this job.:dunno::(
SeaJay. How where operating your detail biz before this LLC? Just curious of the options with starting a detail business and the legalities of operating at first before filing for a business license or LLC. Is a business license all you need to start legally operating as a detail biz? I know all this is probably answered in the thread "How to make money detailing". Just thought I would snag any info you can give me since you(SeaJay) are in the middle of doing it. Thanks in advance.
 
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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!
 
Congrats SeeJay!

You're right, it's only a matter of time when something goes wrong. I'm sure you're more than a professional at this but as you stated, we are all human and things go South when we least expect it.

BTW: Welcome back, your contributions to AG forum were missed. I'm sure you never thought much about AG though :laughing:.
 
congrats on pulling that trigger. i am still gun shy. just can not seem to pull the trigger
 
ShaunD said:
:doh:I wish I had insurance right now, as I just went through a spot on my neighbors bumper(through the thin clear and started getting red paint on my pad). I am not even established as anything yet and already making a bad name for myself. Thinking I should hold off using any power tools:nomore: around other people's vehicle until I establish a business and/or get insurance. Find out if he wants it fixed tomorrow. Guess I won't be getting any money from this job.:dunno::(
SeaJay. How where operating your detail biz before this LLC? Just curious of the options with starting a detail business and the legalities of operating at first before filing for a business license or LLC. Is a business license all you need to start legally operating as a detail biz? I know all this is probably answered in the thread "How to make money detailing". Just thought I would snag any info you can give me since you(SeaJay) are in the middle of doing it. Thanks in advance.
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Prior to doing the LLC I was just operating under the table. Cash and a few checks here and there. I did pretty well last year just doing it part time. Basically getting my detailing legs under me and getting a feel for the market. I don't get a lot of paint corrections, last year I did 4 or 5 for barely a profit. More just to get some experience. I really started off by doing my friends cars at a cheap price. I put an ad on craigslist and printed up some flyers that I left at the local sub shops, local convenient stores, etc. If you do good work and are reasonably priced word of mouth spreads fast.

You'll need to check your local laws to see if you can just get a license. Mass we have laws against everything and everything is really expensive. I just paid $1,000 to have to get the LLC. I searched around for different companies and ended up going with LegalZoom. Since I just did everything today we'll see how much more money I'm going to need to drop in order to get everything squared away. I know my insurance is going to run me roughly around $1,000 for the year. At least that's the quotes I've gotten so far. I'm also going to talk to a tax attorney to see how much they are going to charge to keep my taxes in line. I don't want to screw anything up when it comes to that. My first year I'm not really expecting to make too much after putting down all this money, but it gets my foot in the door and with my work ethic and knowledge (of course I'm always learning more from everyone here at AG) I know I can make it work.
 
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