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Open new company?? PLease help

Discussion in 'Business Fundamentals' started by Sal150, Feb 1, 2009.

  1. Sal150

    Sal150 Junior Member
    Messages: 5

    Whats up guys i have a few questions, Ive been pushin snow since i was about 15 and im 19 now. Ive turned my 4 accounts to about 16 to 22(depending on inches) houses and started using invoices. Since im using invoices people have been sending me checks in the mail with the company name on them. Now i dont have a buisness nor a business account in the company name.

    Im worried that im doing the wrong thing in taking the checks in the company name, IRS wise. So should i spend the money to open the company or go back to cash or make the checks payable to my name.

    My pops really flipped me out about what the irs could do and i dont want to start on the wrong foot.
    Thanks for the help
    -Sal
     
  2. YPLLLC

    YPLLLC Senior Member
    Messages: 144

    Unless your depositing 10k at a time the IRS is not even going to be notified about your bank transactions. However, you may want to become a company for two reasons, name recognition, and you need to get insurance!!! Hope this helps, it should only cost you a few hundred to get everything taken care of.
     
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I think you should go back to cash only ,and let the IRS know to.






















    If you want to be a business run it like a business. Get your company in order and either sign up as a DBA,LLC, or Corp.Don't for get to collect sales tax to Gov. Patterson needs the money.
     
  4. BigDave12768

    BigDave12768 PlowSite.com Addict
    Messages: 1,446

    make friends with a guy at a check cashing place. Then change your invoices to say "Make check Payable too"
     
  5. Team_Arctic

    Team_Arctic Senior Member
    Messages: 176

    my bank wont put checks in my personal account with my company name, i have about 4 account now but i had to open an account with my company name on it so that i could even deposit them
     
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Just hope you don't get in an accident because youe insurance company won't cover you.
     
  7. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,878

  8. Sal150

    Sal150 Junior Member
    Messages: 5

    Thanks alot this is the type of answer i was looking for. Im going to do this tomorrow.

    I contacted my insurance company last week about a policy. They are supposed to get back to me sometime this week.

    Thanks for the help guys
    -Sal

     
  9. Krieger91

    Krieger91 Senior Member
    Messages: 353

    I certainly would get the company. Avoid any of the possible legal headache that could come up.
     
  10. blk90s13

    blk90s13 PlowSite.com Addict
    Messages: 1,157

    yea starta a company its the way to go
     
  11. jgoetter1

    jgoetter1 Senior Member
    Messages: 278

    Change you company name to your name. For example, Nick's snow plowing. This way you can endorse the check with your name.
     
  12. Oasis

    Oasis Senior Member
    Messages: 273


    your a hoot!!! do you look good in vertical stripes? I hear its quite the fasion statement.
     
  13. Brant'sLawnCare

    Brant'sLawnCare PlowSite.com Addict
    Messages: 1,754

    I made sure I had some good solid accounts before I became legit. I also waited until I was 18. It's expensive to start a business up. Make sure you have some good accounts, and make sure you can afford it. Also when I set up my business, I talked to 3 people. 1. A lawyer 2. An accountant 3. My insurance agent. You should probably do this too. They all deal with this stuff on a daily basis.
     
  14. calhoun

    calhoun Senior Member
    Messages: 165

    All good advise. I think you are realizing that starting a business is more than just putting your name on some invoices. As well as the above advise don't forget the taxes. You will need to file quarterly with estimated payments to the feds and state. Also if your state charges sales tax you will need to keep record of this and deposit it quarterly. On the good side of taxes (oxymoron) you will be able to deduct all your expenses and depreciate your equipment. I keep a credit card in every truck and it is used just for expenses. This makes record keeping a lot easier.
    Were did you find a bank to cash a check made out to a business when there is no business account?
     
  15. Ipushsnow

    Ipushsnow Senior Member
    Messages: 314

    The thing to remember is this; If you don't have a company and if you have an accident or damage something they can sue YOU. You can lose all you have, house, vehicles, savings, and all you may acquire for a LOOOOOONG time.

    If you have a business, they can only get up to what the business is insured for, and what the business is worth. It's a barrier of protection for your personal finances.

    As far as protecting your business, here is a a little nugget for you: A friend of mine actually keeps all vehicles and expensive equipment in his own name, and then "leases" them to his business. He writes up receipts and everything. That way even if the business does get sued, on paper its only worth a fraction of what it really is.

    The point is you, and your business are two totally separate entities in the eyes of the courts. YOU can't be sued for what your business does. If they do name you the judge will throw the case out.

    Hope that makes sense.
     
    Last edited: Feb 2, 2009
  16. Puddlejumper

    Puddlejumper Member
    Messages: 74


    Most of the time that is correct. However the owners or shareholders of a Corporation can be held personally liable for the actions of the business in the case of outright fraud. An S-Corporation provides the same limited liability protection as a regular C-Corporation and fraud is still a big no no. For as small as you are a Lawyer and accountant may recommend an LLC.
     
  17. Deckscapes

    Deckscapes Senior Member
    Messages: 241

    PuddleJumper is correct! Just because you protect yourself under a limited liability protection entity, it is very easy to be held personally liable for actions of your business. Keep all personal things personal, and all business things business! Do not, under any circumstances, mix them or your corporate veil will be an easy target in a courtroom! Pay yourself a salary, do not use your personal credit for your business, etc., and by all means hire an accountant and attorney in the beginning to help establish a healthy business!!!
     
  18. twinman326

    twinman326 PlowSite.com Addict
    Messages: 1,683

    Also I would make the company a "S corp". This way it will separate you and your company. Also find a insurance company that only deals with insurance for companies. Last but leat, find a payroll company. This way you can call your payroll company and have them pay you..they will take all the necessary taxes out for you and they will send it to the IRS. Being an "S Corp", you become an "Employee" of the comapny..
     
  19. twinman326

    twinman326 PlowSite.com Addict
    Messages: 1,683

    sorry for the misspelling.(Being an "S Corp", you become an "Employee" of the company )
     
  20. holleys

    holleys Junior Member
    Messages: 3

    I didnt set up my company till I was 18. I set mine up as a dba for now and have 2mil insurance. But make sure you have the accounts to pay for insurance and everything else that comes with owning a company.