Insurance and LLC

[cwenbass 14]

I am very small potatoes and that is fine by me. I started a few years ago. First year I paid off all my equipment. Last year, made a few $$$ before shoulder surgery cut my season short. This year will be my first full season on the job. I only want to do vinyl houses and make a few thousand $$ for the year. If I made $6000 that would be an amazing year for me. I teach full-time and coach football in the fall. I like powerwashing. It's a great spring job. All that being said, is insurtance and an LLC a great idea for someone in my shoes? I am not out there blowing siding off of houses. I am very careful about what i am doing and the products I use. Any suggestions?

Thanks,

Chris

Edited January 8, 2013 by cwenbass

[Adrian 155]

Insurance, yes, definately.

LLC = you might as well stay sole proprieter if only part time.

6000.00 can be tripled on a part time basis.

If you only do vinyl finishes , then yes 6000.00 is realistic at part time.

But you will get bored fast with vinyl only, when there are so many other areas to tap into.

Flat work, Hardi, EIFS, wood, roofs, window cleaning. All can be done part time.

If a customer calls your company and asks you to clean a brick finish, are you going to turn them down because it's not vinyl?

Not trying to be a smartie or anything but if you limit yourself to vinyl only, you'll go under quick.

Hope that helps but thats my 2 cents.

[Beth n Rod 1,279]

Insurance? Never work without it.

LLC? You should talk to a CPA about that. My sense is either form a Corporation in either C or S, or go with an LLC. I would NOT remain a Sole Proprietor. If something goes wrong, you are leaving yourself wide open.

Beth

[Adrian 155]

Iknew my statement would come back and bite me on the arse.

Oh well. Best of luck.

[cwenbass 14]

Anyone give me an idea on cost for LLC and insurance?

[Jason Reider 25]

You can convert you business to a LLC on legalzoom.com for around $400-$600. Insurance varies. Being a solo operation, you may be able to get insurance in the $800-$1200 range for the year, but I'm not positive on that.

[Jack Kramer 15]

Chris,

In New Jersey you can create a LLC online for about $125.00. You also should get a NJ Contractor license number from the state (about $100.00 per year). Your insurance cost will start around $1200.00 per year, that will go up fast if you add a company auto.

If you would like to talk about it give me a call.

[John T 744]

Hey Chris-- if your around March 14-16 Jack above and Matt Johnson are doing there yearly now Albany event upstate NY. Great place for Powerwashing contractors with 18 or more years like myself or someone just starting out to be able to learn and network. You'll get to see some cool machinery and demo's as well. You'll learn a ton even about the questions you have here.

Also for you there are guys not far from you that will attend this event. These guys you want to seek out because networking is paramount in growing your business..

Something to think about and it's good to have choices with opportunities:)

[brian22 14]

Yea what John said,,,,,I went last year. I had never run a pressure washer before or had anything to with running a business. We had a good year for 2012, and that would not of happened if it wasn't for the class and seminar....Matt and Jack also spent countless hours on the phone helping us through some jobs. That's were it's good to network and make some connections. I'm sure we will be calling Matt and Jack for years to come with questions and advice on power washing.

Brian Condon

Maine

[Littlefield 65]

Both of the things you asked about protect you even more than the homeowner. In my mind, it wouldn't be worth the risk to myself if I was just making a few thousand bucks.

Consider, you're washing a house, and someone trips on one of your hoses while you are around the back of the house, pitches forward, and burns their face on your equipment. (extreme, I know, but I'm trying to make a point here).

First, after the screaming stops, you need to know how you are going to pay for their plastic surgery. What, you don't have that in savings? Even if you do, you should be protecting it with insurance.

Second, the corporation is supposed to protect you from being sued personally for something you did while in the operation of business. Even if you have insurance, and they are taken care of medically, they are going to come after you for everything you own for the pain and suffering, negligence, etc. If you have a valid corporation, they can sue the corporation, not you. Of course, the first thing their lawyer will try to do in court is "pierce the corporate veil", and try to show the judge that its not really a corporation, its just you with some paperwork, and you never had a corporate meeting, never kept minutes of those meetings, etc. Do your homework and find out what you need to keep up to date on!!

Hope this helps!