start up ?

[Dennis Harbin 14]

trying to get everything legal

i live in maryland do i need to pay sales tax on all my residential jobs?

as a llc company am i being double taxed business tax plus personal tax?

i am looking at 1Mill liability ins. does anyone recomend more or less just doing residential?

to get everthing rolling do you recomend a tax guy(account) or lawyer to set everthing up?

and last i am finding out that my employee is going to cost alot more with all the exta taxes i will have to match is better to list him as a sub and have him pay his taxes with a 1099?

i would apreciate any help thank you!

[Paul B. 523]

No, as an LLC everything is combined and you pay taxes once.

Remember, liability will not cover the substrate or surface you are working on or cleaning. For example, if you damage a deck you are cleaning, the insurance will not cover it. However, if someone slips on a wet sidewalk that you cleaned, the liability ins. will protect you. Make sure you keep all your personal activities separate from business activities such as banking, travel, etc. and be safety conscious - The advantage of the LLC is that your personal property and personal holdings can not be subjected to actions thru your businesses liability. There are of course always exceptions - especially if your actions are careless or flagrant.

For liability, $1M is never too much.

A good CPA will help you in regards to business and tax basics more than an attorney. Personally, I would only look at an attorney if you have partnership or setting up a contract, etc.

If you are considering a sub, make sure you read up on the requirements. Any sub you pay over $600 per year, you have to submit a 1099 on. You also have to make sure you follow the guidelines on supervision as you can't direct them on their detailed activities, only on the outcome of the work.

Check out IRS site:

www.irs.gov/businesses/small/article/0,,id=115041,00.html

www.irs.gov/businesses/small/article/0,,id=99921,00.html

You should also have a contract with the sub outlining each job or general and individual specification sheets should be issued before any work is assigned.

Your workers comp will not cover subs.

Also, make sure your liability insurance covers sub-contractors

or require your sub to have: General Liability, Auto Liability

Property Damage, Worker’s Comp - (determined on a per state basis). If it's their insurance, make sure that you have proof and check at 6 month intervals to ensure it hasn't expired.

All contractor licenses, required by your state, must be current and on file.

Your CPA can generally help with this issue also.

[Ron Musgraves 240]

I like LLC, does anyone else

[Paul B. 523]

Yep, I like LLC / Ltd. for certain businesses. It does have it's limitations.

I was pleasantly surprised to see that a local Ford transmission plant partnered with a German company and formed a LLC rather than Incorporating.