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Business Questions

Discussion in 'Introduce Yourself to the Community' started by mxjake387, Oct 26, 2009.

  1. mxjake387

    mxjake387 Junior Member
    Messages: 26

    Hey guys, im new to the site and plowing in general. This is going to be my first year plowing and i just had a few questions.
    How do i go about creating my own business? What is the process of being able to write off all my business expenses etc.
    Any tips to managing my own business would be greatly appreciated!
    Thanks, Jake
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Couldn't your 1st post be,I need help bidding this place?

    But anyway, first you need to decide what type of business you want to be ,LLC ,DBA,INC. Most you can do yourself,but if you have a lawyer all the better.After you figure out what you are ,you need a EIN to be able to set up a bank account. Do not mix business and personal money! Then find an insurance broker to get Commercial truck insurance ,then get GL insurance make sure it includes snowplowing. Then get a accounting program like Quickbooks.
    Hows that for a start?
     
  3. mxjake387

    mxjake387 Junior Member
    Messages: 26

    Awsome! thats exactly what i was looking for. Thanks alot.
     
  4. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    my friend you need a mentor, lol, what you are asking is a pretty long winded conversation, short version -talk to you banker/accountant (if you don't have one, talk to someone with good money skills)
    -municipal rules (buisness licenses, hours of operations, noise bylaws etc)
    -insurance
    -write everything down and never throw away a receipt

    for the first couple of years you can handle all the paperwork etc yourself, and just talk to a accountant when you file income tax. this is also when you write off expenses, when you file your taxes you file under a propriotership (pretty sure the spelling is wrong there) and list all expenses/receipts you have, this is where a accountant becomes handy, he can tell you what you can and can't claim or if it is just a portion. example your house can only be claimed for a certain amount because you also incure expense living there too, so they work a caluclation on the square footage and frequency you use the area for work and they allow you to deduct that, be honest, if you get audited and you claim lets say 90% of your house expenses as work, you are probably in a lot of trouble, i hope that gives you a bit to think on. GOOD LUCK
     
  5. mxjake387

    mxjake387 Junior Member
    Messages: 26

    Alright thanks guys. So basically in a short short version 1). get insurance 2).advertise 3).get customers 4).make money 5).open business account for money 6).save all receipts spent for company.
     
  6. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    boy, oh boy, SURE, if you believe it is that simple good luck. building a buisness is something that takes many years, plan your first two years to make little to no money,
     
  7. mxjake387

    mxjake387 Junior Member
    Messages: 26

    oh no i understand its very hard. i was just trying to get the basic steps to follow just to get started. like i said this is my first year plowing and needed some guidance. we all had to start somehow someday.
     
  8. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    for sure, well if you have any other questions feel free to ask, also don't take the guys gibbing to hard, everyone on here is a comedian
     
  9. CMU07

    CMU07 Member
    Messages: 68

    And when you start making a little money be prepared to give most of it to the government!
    A lot of guys will hide money where they can, and I dont fault them. ALMOST everyone does it a little here and there. But my suggestion for you, beacuse a lot of people dont think of this right off the bat, is to decide what you want to do with your business. IE pay the bills, or grow it large.
    To pay the bills, you can be a little more loose with what I mentioned above, not reporting everything. However, if you want to grow, the bank needs to see that, so you need to report everything. Now the exception would be if you're fortunate enough to be able to pay cash for things.
    Catch 22. Show more earnings, pay more taxes. Write a bunch off/hide money, your income looks small when you do something personal, mortgage/car loans/etc.
    Just something that peeves me every year come tax season! Sorry about the rant.
     
  10. CMU07

    CMU07 Member
    Messages: 68

    And you've got time before you think about that, but it came to mind!
     
  11. mxjake387

    mxjake387 Junior Member
    Messages: 26

    haha no its fine, as long as you guys help out which so far you are. But yea CMU i understand what you are saying and i dont blame you for the rant. Thanks for all the help guys!
     
  12. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    AND DON'T LOWBALL!!!.... your starting this business to make $... make sure the accounts you bid on are givin' a fair price... you need extra $ to grow your biz just not to pay bills
     
  13. hydro_37

    hydro_37 PlowSite Veteran
    from iowa
    Messages: 3,790

    I hope you have a few customores already lined up.
    Put some signs with your name and number on your truck.
    It is getting a little late to book full time customers but you will surely get flagged down by people if you get a big storm.