Starting LLC process today

whavens

whavens

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Starting LLC process today

Met with a CPA to begin the process of turning the hobby into a business. He will be filing the initial request for the LLC and for my Federal Tax ID this week.

I am eager to get started and will be finding a graphic artist to help me begin the process of creating a logo. Once that process is complete I will look for a web designer to help with a web site.

I have a Flex 3401, a GG6, a GG3, a McCulloch 1385 steamer, a Master Blaster, and a decent assortment of compounds, polishes and waxes. I was leaning toward adding the following equipment:

Flex PE-14 rotary
Flex PE-8 Kompakt
Mytee HP-100 Grand Prix extractor
Metro Sidekick
HighLine PTG
Tornador Black
Possibly a long throw DA

Does anyone notice any glaring omissions from the list of additional equipment? Thanks for taking the time to read this.

Walter

P.S. Will be doing business as Havens Auto Detailing.

:buffing:
 
Maybe a long throw. I love my Boss G21. I have done 1 AIO, and a full correction with it so far, I understand why a lot of detailers use their long throws almost exclusively.
 
whavens said:
Starting LLC process today

Met with a CPA to begin the process of turning the hobby into a business. He will be filing the initial request for the LLC and for my Federal Tax ID this week.

:buffing:
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Walt big CONGRATS MAN! I'm in the same boat as you currently.

How about some more foam pads and microfiber towels in an assortment of colors. Then some more microfiber towels, foam pads and maybe couple, two, tree wool pads. Little humor there I might be over doing it.

What about a 3" DA.

What did you think of the Griots BOSS 21 long throw DA?

Hey maybe Bob has some stuff??

Don't forget Microfiber towels!

All the best Sr!
 
Billy Baldone said:
Maybe a long throw. I love my Boss G21. I have done 1 AIO, and a full correction with it so far, I understand why a lot of detailers use their long throws almost exclusively.
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Yeah had it listed as a possible, and the more I think about it, the more sense it makes. Might grab the Rupes Mini. I think it is a more versatile machine than the GG3.

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High Caliber said:
Walt big CONGRATS MAN! I'm in the same boat as you currently.

How about some more foam pads and microfiber towels in an assortment of colors. Then some more microfiber towels, foam pads and maybe couple, two, tree wool pads. Little humor there I might be over doing it.

What about a 3" DA.

What did you think of the Griots BOSS 21 long throw DA?

Hey maybe Bob has some stuff??

Don't forget Microfiber towels!

All the best Sr!
Click to expand...

More pads and towels will be added as needed. I will probably add a few to each order. I will probably stock up on some coatings and sealants as well.

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If you are doing alot of correction a PTG is a must for peace and mind. Customers like to see you are taking all precautions before putting a machine to the paint. Also a Flex PE-8 Kompakt would be very useful for those tight areas.
 
You will most certainly want/need insurance. Call around and seek the quotes from different agencies, as I assure you, each one will be different. When you get it, make sure you have all of your bases covered. You can PM me and we can go over all of that, I'm in the same process, but my dad's an agency owner, so he's really helping me out with it. Take care, and GOOD LUCK!
 
SKorch630 said:
You will most certainly want/need insurance. Call around and seek the quotes from different agencies, as I assure you, each one will be different. When you get it, make sure you have all of your bases covered. You can PM me and we can go over all of that, I'm in the same process, but my dad's an agency owner, so he's really helping me out with it. Take care, and GOOD LUCK!
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Thanks for the information. I will pm you when I get to that point.

Walter

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Insurance is interesting in how much it can range from company to company, some time and effort at the beginning is definitely worth it in the long run.

Are you gonna be working out of a shop or doing it mobile? When do you plan on starting?

Just out of curiosity, how come you decided to go with an LLC over a simple sole proprietorship?
 
jarred767 said:
Just out of curiosity, how come you decided to go with an LLC over a simple sole proprietorship?
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"Under the sole proprietorship, you and your business are viewed as one in the same. Therefore, you have unlimited personal liability for all of the debts and legal liabilities of your sole proprietorship. Your personal assets, such as your home or personal bank account, could be at risk to satisfy unpaid debts, legal judgments, and other legal obligations of your start-up. On the other hand, an LLC is a separate legal entity and an LLC member is normally not personally liable for the LLC’s debts or legal liabilities. As an LLC owner, you are mainly putting your financial contribution to your LLC, not your other personal assets, on the line."

This is exactly why I would go LLC or an S-Corp over anything. It completely eliminates you from most liability within the business.

The last thing you want is to cover cost of resprays, the cost of the vehicle if the garage burns down, etc. All of that comes out of YOUR pocket as a sole proprietor. With an LLC, it's covered by the insurance and kept completely separate from you.
 
SKorch630 said:
"Under the sole proprietorship, you and your business are viewed as one in the same. Therefore, you have unlimited personal liability for all of the debts and legal liabilities of your sole proprietorship. Your personal assets, such as your home or personal bank account, could be at risk to satisfy unpaid debts, legal judgments, and other legal obligations of your start-up. On the other hand, an LLC is a separate legal entity and an LLC member is normally not personally liable for the LLC’s debts or legal liabilities. As an LLC owner, you are mainly putting your financial contribution to your LLC, not your other personal assets, on the line."

This is exactly why I would go LLC or an S-Corp over anything. It completely eliminates you from most liability within the business.

The last thing you want is to cover cost of resprays, the cost of the vehicle if the garage burns down, etc. All of that comes out of YOUR pocket as a sole proprietor. With an LLC, it's covered by the insurance and kept completely separate from you.
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Well explained, saved me the time posting it 😀. LLC is what I have for my photography business as well. The name basically explains itself....Limited Liability Corporation.
 
SKorch630 said:
"Under the sole proprietorship, you and your business are viewed as one in the same. Therefore, you have unlimited personal liability for all of the debts and legal liabilities of your sole proprietorship. Your personal assets, such as your home or personal bank account, could be at risk to satisfy unpaid debts, legal judgments, and other legal obligations of your start-up. On the other hand, an LLC is a separate legal entity and an LLC member is normally not personally liable for the LLC’s debts or legal liabilities. As an LLC owner, you are mainly putting your financial contribution to your LLC, not your other personal assets, on the line."

This is exactly why I would go LLC or an S-Corp over anything. It completely eliminates you from most liability within the business.

The last thing you want is to cover cost of resprays, the cost of the vehicle if the garage burns down, etc. All of that comes out of YOUR pocket as a sole proprietor. With an LLC, it's covered by the insurance and kept completely separate from you.
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If you have insurance on the business, that covers all of that as well. No?
 
If you're insurance policy is $100,000 and there's $400,000 in damage, who covers that? You :) That's where the LLC comes into play. They can no longer take ANY of your personal assets. It's all covered by the LLC's insurance.
 
There are corporate and LLC (limited liability company) formalities that you need to make sure you are following in order to preserve its abilities to protect your assets. Sole shareholders and managing members of single member LLC's get sued frequently for actions taken by their companies. Have your annual meetings, create written minutes, file taxes, and make sure you timely file all state required renewals, etc. If you don't know what all those things are and what is needed in your state, find out.
 
My CPA called Friday and had all my IRS and LLC paperwork. I stopped in to see him, then off to the bank to open my business account. It's official, I am now Havens Auto Detailing Services LLC.

Walter

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AZ Mike said:
Congratulations.
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Thank you. Need time find Aaron graphic artist for a logo, then I'll get business cards made and we're on our way.

Walter

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