Part time detailing from home question

Coopers ST

Coopers ST

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Hey all,
I would love some input or a what would you do...I detail part time, a couple cars a month from my house. This year (2017) I have done 4 cars, though it's winter now. I do claim what I make on my taxes (well I started for my 2016 fiscal l year). Should I go to my city and get a business license? Would I be just opening up a can of worms for inspections, and the need for water reclamation, and extra insurance? Right now I just use a hose in my driveway, though today I did a car that wasn't terribly dirty and did a rinseless wash first.

So...what would you do?
thanks
 
Coopers ST said:
Hey all,
I would love some input or a what would you do...I detail part time, a couple cars a month from my house. This year (2017) I have done 4 cars, though it's winter now. I do claim what I make on my taxes (well I started for my 2016 fiscal l year). Should I go to my city and get a business license? Would I be just opening up a can of worms for inspections, and the need for water reclamation, and extra insurance? Right now I just use a hose in my driveway, though today I did a car that wasn't terribly dirty and did a rinseless wash first.

So...what would you do?
thanks
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I would say don't bother if your doing this partime but that's me.
 
Not familiar with the tax laws where you're located........I'm in D.C. I claim what I make detailing from home (part time) and I also claim my loses, supplies bought etc. I have a general business license but it's for rental property only.
 
I would at least look at getting an LLC and business insurance in case something happens. That way you can write off expenses as well. As every state differs, consult an accountant.
 
I went ahead and did the city license and registered with the state as well. It only cost about $20 total and was pretty simple. Each state and city are different but I honestly doubt that in Colorado they will have you do water reclamation. I'd check the city and state sites and you should be able to find the needed info fairly easy. I think I t is always best to do things legally and you'll probably not be charged anything extra. Some cities charge a tax on services but I think a lot only charge a tax on goods sold rather than services performed.

Do you currently have garagekeepers insurance as well?

I'd say either way just look into it first and see what the ramifications are, but I'd hate to get a few years in and end up having to pay fines on top of back taxes or get sued for not having a license. Best case scenario, your city doesn't require one or does but has no tax on services :).
 
Not sure if it is required or not. City license is $50. My accountant is filing a tax return on my business with my expenses and losses, I of course lost money this year with all my expenses. Talking with other mobile detailers they are not allowed to let water drip on the ground. They either have a reclamation system, or pit towels under the car and do a rinseless. I am using a hose in the driveway like anyone else would to wash their own car.
 
Coopers ST said:
Not sure if it is required or not. City license is $50. My accountant is filing a tax return on my business with my expenses and losses, I of course lost money this year with all my expenses. Talking with other mobile detailers they are not allowed to let water drip on the ground. They either have a reclamation system, or pit towels under the car and do a rinseless. I am using a hose in the driveway like anyone else would to wash their own car.
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That makes sense. I think if you aren't doing too many cars it probably isn't a big deal. The only part that worries me is when you claim and pay taxes it "could" come back to haunt you. I sure hope not, though! Has your accountant weighed in at all?

I'm really surprised that they would have you do reclamation in your state but then again each city is and can be very different. Overall, I'd still look and weigh up the pros and cons to make an educated and informed decision my friend.
 
Most cities zoning laws do not allow professional auto detailing (and many other businesses) performed at your personal residence. Mine does not. You can do mobile and go to the customer's home.
 
Scottie Brown said:
That makes sense. I think if you aren't doing too many cars it probably isn't a big deal. The only part that worries me is when you claim and pay taxes it "could" come back to haunt you. I sure hope not, though! Has your accountant weighed in at all?

I'm really surprised that they would have you do reclamation in your state but then again each city is and can be very different. Overall, I'd still look and weigh up the pros and cons to make an educated and informed decision my friend.
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Talked to my accountant tonight even after I posted this thread. She asked if I had a license so she could deduct the expense. I told her I do not, I was thinking about it for this year. She said ok, I asked what she thought and she said for her it wouldn't make any difference.
On that note, my accountant is my mother in law, if there was anything at all shady, or not on the up and up she won't do it. She isn't going to do anything to put her daughter in jeopardy, or allow me to get us into trouble. She will let me deduct water, electricity, internet, phones, miles on the car, but not the house. She says that is almost guaranteed to get you audited on something like this.
 
Coopers ST said:
Talked to my accountant tonight even after I posted this thread. She asked if I had a license so she could deduct the expense. I told her I do not, I was thinking about it for this year. She said ok, I asked what she thought and she said for her it wouldn't make any difference.
On that note, my accountant is my mother in law, if there was anything at all shady, or not on the up and up she won't do it. She isn't going to do anything to put her daughter in jeopardy, or allow me to get us into trouble. She will let me deduct water, electricity, internet, phones, miles on the car, but not the house. She says that is almost guaranteed to get you audited on something like this.
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Your small very small and you will not get audited.make 160000 a year partite than I would agree your going to get audited.Start making money first,then after 2 or 3 years seek into all that.once your registered as a company the irs is notified and you will have to file.In fla you charge tax on whatever product is applied to the car such as wax or tire dressing.car washing is not taxable in fla.It's weird but hey I'm not complaining. .
 
Hello Brad. I'm currently going through a move from Illinois to Wisconsin. The new house is in a normal neighborhood with an extra freestanding garage/shop with heat and a/c. I have to figure out the water next. I'm in the same boat as you, except I would like to start doing more cars, nothing crazy, maybe 10-15 per month. I will be looking into a sole proprietorship, and insurance to more or less legitimize myself. I will update this thread as I go through the process.
 
Good luck with your move Billy. Where in Wisconsin are you going? My first move was from Illinois to Minnesota, I lived in Winona right on the river. If there were jobs there we wouldn't have left.
 
Lol. I love Winona/LaCrosse. My stepdaughter went to Winona. We are going to Johnson Creek. In between Milwaukee and Madison. I still plan on working in N Illinois. We are pretty excited about the move.
 
To get legal for my mobile detailing business, I needed the following licenses and paid taxes/fees:

fed tax id - federal
Llc - state
DBA - county
Insurance - local
city business license - local
state tax registration - state

I think that was everything.


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First research the tax laws in your area.
Typically there is a dollar amount limit you can make, or a specified number of vehicles you can detail, and not be required to report.
These numbers are typically very low, as in 2 - 4 cars / $400.00 earned income, type of thing.
If this is something you intend to do part time, and have steady volume, you need to fully commit to registering your business and getting proper insurance.

Home Owners Association (HOA):
If you live in a place that is under the governance of an HOA, you won't be in business very long.
You may get by for a while, but someone will say something, they will complain, and you will most likely be fined.
Once in a while, you are probably ok.
Consistent new vehicles in the neighborhood, at your place being worked on, is noticeable, and difficult to fly under the radar.

Water Reclamation:
There is pretty much 100% chance that your house/property will not be zoned for detailing.
It might, but is doubtful.
Most principalities look at detailing as car washing, and will subject you to the same water and sewer filtration systems that fixed location car washes have to.
If you are somehow able to get zoning, it would have to be a dedicated rinseless/waterless wash approch, and most likely anything to touch the ground would have to be reclaimed.
 
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