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New to the game

Discussion in 'Introduce Yourself to the Community' started by sammyboi22, Dec 15, 2011.

  1. sammyboi22

    sammyboi22 Junior Member
    from IL
    Messages: 2

    Hello,

    I have done a few searches on the forum as well as google to try and find these answers so I decided to register and see if any of you have any advice/information on a few things.

    1. If I was looking to get into plowing would I need to start a private company that is contracted out to make sure the IRS is not unhappy with unreported income.

    2. If I were to start a company is there insurance for a company that covers vehicles as well as accidental damage that might come out of hitting cars, homes, etc.

    3. If it is a company could I write off depreciation on my equipment each year?

    I know that this is a completely random thing but my friend has a neighbor who is looking to sell a few trucks with plows on them (no his neighbor is not a plow guy he just buys and sells vehicles)

    Edit. I am located in Illinois.
     
    Last edited: Dec 15, 2011
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

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  3. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    Grandview- Why you say 3 yrs. ???
     
  4. sammyboi22

    sammyboi22 Junior Member
    from IL
    Messages: 2

    Thanks for the information. Would a company like Geico have the insurance option or is it just under most vehicle insurance and you just tack on an extra to the policy for plowing.
     
  5. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    Most Personal Vehical insurance-at least here in NY Tops out at 500,000 Liability. This is probably too low for a business. Thats why Geico, Allstate Nationwide Wouldn't cut it unless they sell you commercial Insurance. State Farm goes up to 1 million for Liability on a business vehicle at a resonable rate its not commercial Ins but if your the only one driving your vehicle it might suit your situation. Beyond this you need Business Insurance- General Liability. This starts out at 300,000 and can go to 1 or 2 Million for better coverage. I don't know all the details on this yet but hope to nail down some better rates and coverage soon.
     
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I was going with the IRS thing.They don't like to see a business with more then 3 yrs of losses.If so they may consider it a hobby as apposed to a business. But deprecation you can do over 7 yrs or 10yrs on equipment or all at once.
     
  7. jklawn&Plow

    jklawn&Plow Senior Member
    Messages: 469

    Got it, thought for a second I slipped up since I'm depreciating till the full cost is retained.
    I just ran some numbers on section 179 ing my new plow. It came up better to do it all at once but with the payroll tax possibly not staying at 13.3 % (instead of 15.3) for the next 3 years I think I might do it over 7 yrs.
     
  8. pushingsnow

    pushingsnow Member
    Messages: 54

    going along with this i am looking to start out gonna just do a few drives this year for cash next year id like to start up a legit buisness doing snow removal landscaping and the works maybe towing too but that would be a higher initial investment what am i looking at for initial investment for the main part plowing and landscaping just starting it insurance buisness name all of that stuff not including equipment i can figure that stuff out