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Question about starting a plowing business

Discussion in 'Introduce Yourself to the Community' started by ss502gmc, Sep 18, 2008.

  1. ss502gmc

    ss502gmc Senior Member
    Messages: 473

    I am curious to know exactly what i need to get started with my plowing business, i have businesses calling me left and right for quotes but they are saying that they require a 1,000,000 liability ploicy which i usually carry a 500,000 policy on my passenger plates that includes snowplowing. Do i need commercial plates and insurance?
    and they also told me i needed workers compensation insurance is this typical? And one other thing should i get a Fed Tax ID#? Any help would be appreciated.
  2. hydro_37

    hydro_37 PlowSite Veteran
    from iowa
    Messages: 3,790

    Go talk to your insurance man first. The insurance may be so high you will re-consider plowing. Whatever you do make sure you have insurance. No idea on why the workers comp if you are a 1 man show. If you are running it as a business you should already have a Fed ID #. IMO
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    The insurance bump shouldn't be that bad.Yes you should have a tax id number all ready you need one if your filing taxes and opening up a bank account and collecting sales tax.
  4. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    commercial auto ins may be cheaper

    they want workers comp because they dont know that even if you are a one man show that you are actually doing it yourself and not hiring aa buddy on the side for cash, this isnt hard to get either

    i dont know that commercial plates mean anything they dont here its just a different weight bracket
  5. justwheelit

    justwheelit Member
    Messages: 46

    yes insurance is a must, most places usually want 1,000,000/2,000,000 commercial liability around here bfore they will even consider you, and plates shoudnt matter all it is here is a different weight limit
  6. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162

    when they said i million liability they meant general business liability nothing to do with your auto but some will spec how much auto ins
  7. rofoth6

    rofoth6 Member
    from iowa
    Messages: 67

    Most States if you are a one man operation your ss# is your federal tax number.
    At least in my state it is.
  8. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Those are 2 different types of numbers.Business have a tax id number and your ss number is for your personal use.