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Started business

MJ

Senior Member
I went in to do some research to start a snowplow business today. My idea was to establish a business plan this winter, spend the the next several months learning from you guys and then I could start the lawn care portion of my plan in the summer, then plow next winter. I'd bought a new Fisher last August and it's sitting in the garage. I'd intended on using it to plow my own driveway and the drive of the house I rent out that connects to ours for exerience. Home owner's insurance would cover that. Went to the insurance co, they liked my plan and got figures for vehicle and business ins. Plus Workman Comp ins (8% of payroll). Bank liked my plan. SBA/SCORE liked my plan. THEN - I went to IRS for tax advise and the lady there did not like my plan - at all. Can't be a business this year without income. If I collect money from the renters, then it's a business. If I agreed with her to call it a business, then she said it couldn't be a business for tax purposes because there's not enough income ($400). The fact that its only snowed once this season isn't good enough. I finally said that's fine - I'll get my insurance policy now instead of waiting for next season - then there's no arguement of being in business of plowing. She agreed with that. Long live the IRS. Now I need: 1) snow and 2)people who want it moved. I'll learn under fire. I have been lurking around every day for a month or so. Really learned a lot - thanks to you all. And Digger, Dino, Storm etc... keep it coming, there's a lot to be learned from your remarks. Makes for interesting reading. Now I have an appt with SCORE next Tuesday. Next step-join SIMA once I get over shock of insurance costs.

Mick

[Edited by MJ on 12-08-2000 at 03:51 AM]
 

diggerman

Senior Member
Location
Ames
Never wanted to go see them, they always seem to want to come see us though. Try to avoid intentional contact if at all possible!
 

landscaper3

Senior Member
Location
S. Maine
Go with M&J Maintenance and stay far-far away from IRS. And on workers comp is for employees i persume if its only a seasonal business tell them that.
 
OP
M

MJ

Senior Member
Thanks, everyone. I'm getting the same advice from everyone, even my wife and insurance agent - stay away from the IRS and ask an accontant instead. Just irritates me that they automatically assume (when you "assume", it makes an A** out of YOU an ME) that you're trying to cheat.

Still sitting around waiting for snow.


Mick
 

John DiMartino

PlowSite.com Veteran
Location
Walden,NY
what would posses you to go to the IRS on your own free will and ask business advice?If they ahd to run like a business they would have been out of business long ago.Do not ever go to them,only when you absolutely have to,and never ever take the business advice of a federal employee.
 
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