Starting a Detailing Shop

I don't take a paycheck from mine I work out of my garage and I pay bills with my income rather than taking a paycheck. My wife makes 6 figures so do need to take a paycheck. It makes filing taxes easier if you only file on return. I still get to right off the same things because I'm sole proprietorship LLC you only have to file separately if you have employees.

Purpose
An LLC offers the benefit of a corporation in that it provides personal protection from all business debts incurred by the company. This is what is meant by "limited liability."

Benefits
Due to its structure, the LLC is a pass-through tax entity. This allows all profits and losses to pass through to the owner, who then reports them on personal tax returns just as in a sole proprietorship or a partnership.



Read more: What Is the Purpose of an LLC? | eHow.com What Is the Purpose of an LLC? | eHow.com
 
Pureshine said:
I don't take a paycheck from mine I work out of my garage and I pay bills with my income rather than taking a paycheck. My wife makes 6 figures so do need to take a paycheck. It makes filing taxes easier if you only file on return. I still get to right off the same things because I'm sole proprietorship LLC you only have to file separately if you have employees.

????? How is your business structured? You have an LLC and nobody at the corporation claims any income? Your wife and you could file a joint tax return for income but your business would also need to file. Right?
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Yes I have any LLC and I don't claim an income for my business and yes I filled my business return with my joint return with my wife. If I have 40k in my business account I still have to pay taxes on the wether I take a paycheck out of the business or not.
 
Pureshine said:
Yes I have any LLC and I don't claim an income for my business and yes I filled my business return with my joint return with my wife. If I have 40k in my business account I still have to pay taxes on the wether I take a paycheck out of the business or not.
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You don't claim an income? I'd hate to be you if they audit your business.
 
lps5053 said:
I must have misread then! Obviously we each would file our own but I didn't know if the business was included with that. Guess it really doesn't make sense that it would be. If you don't mind me asking, do you file your taxes for your business yourself or do you have an accountant?
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I have an accountant do all my taxes he files my business with my normal taxes.
 
ProDetail said:
You don't claim an income? I'd hate to be you if they audit your business.
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Why would I? I haven't taken any money form the company and its in the bank nothing they can do cause I pay taxes on all the money in the bank. I use quick books for all my business and my wife makes way over 6 figures.
 
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For tax purposes, a single-member LLC is a 'disregarded entity' for federal tax purposes. You report the income and the expenses of the business using Schedule C and carry that information over to your personal Form 1040.


A sole proprietorship is not a taxable entity. All of the business's assets and liabilities are treated as belonging directly to you, the business owner. In the same way, all the business income and expenses are considered to be your income and your expenses.
 
I like the idea of the sole proprietorship for starting out but we would be two people acting as partners to open. From my research a general partnership acts just about the same as a sole proprietorship with the difference being that there is two or more people. Anyone know for sure?

By the way, all of this advice is great and much appreciated!
 
I'm not sure if there are two owners how that works if its a husband and wife it works the same.
 
Well it will be me and my buddy so no husband wife there. We're gonna look into a couple things first before we jump the gun but we are still very serious about doing this.
 
If I were to start all over again with detailing as a business I would start with reading as much as possible, like Renny Doyle's book, and a multitude of resources at the library and online. Keep pulling info from the forums but you need to speak to professionals in the specific fields that you have questions on. Like insurance agents, tax advisors/professionals, city hall/treasurer, etc. Also, look into the SBA(small business administration) and all it has to offer, like SCORE. SBA online will give you more accurate info than what most people on forums can or will. What I mean is, there is professional advice and guides, as well as the ability to look up specifics for your area. Another great place to get guidance and info is your credit union or bank. My CU has CPAs and business advisors available; it's like a little SBA where I can get money. You and your partner need to be doing all your research with one another. That keeps you both on the same page and equally vested.
If you don't have a client base right now then I recommend detailing as a hobby/side business until you have your system set, and know that you will consistently being bringing in profit every week. Like Renny, and many others say, don't quote your day job yet. You need to physically see the business taking over and covering all your expenses before even thinking about quitting a steady job. The last thing you want to do is rely on savings to get you through times with no steady income. One of the first expenses I would look into is insurance. I mean all of it; business, health/medical, disability insurance, Aflac, etc. I know you are young and invincible, but if something happens to you or your partner, you need to have everything covered.
The best place to look for insurance of any kind is a local/state wide agency. Here in VA I deal with G. F. Walls, and the got me biz insurance through ALFA Insurance. My biz insurance is cheaper than any vehicle/home insurance I've carried to date.
Hope this all helps and points you in the right direction.

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