NEWB question

[sparklingclean 14]

Greetings all.

I just joined this forum a couple of days ago. I have read quite a bit of the threads and must say I am impressed with what I see. Quite a bit of proffesionalism here and certainly a plethora of knowledge.

I started a pw biz a couple of months ago. Nothing really formal. Just myself and my father in law and hanging some flyers around the neighborhood type deal.

I am now ready to move forward and make this a "legitimate" Biz.

I have a nice pw 12hp 4gpm 3400 psi. I also have a trailer and a s16" whirlaway.

My questions:

What type of company do you folks reccommend and why? IE corporation / sole proprietership etc etc.

Why type of insurance and how much of it do you recomend.

Any other suggestions?

[Scott Stone 604]

It all depends. Since you are doing it with someone else, I would have a corporation, with a buy sell agreement. That way, even though it is your sainted father-in-law, you both will know what to expect. For what it is worth, going into business with a friend, is a good way to lose a friend.

For insurance, I do commercial and governemnt work. It is a very good market to me. I have to carry a minimum of 1 million/2million liability. I also do the full workmens comp thing, etc. We run our business straight and above board, with no shenanigans. I sleep better that way.

Stuff I wish I would have known when I started? Quickbooks is a life saver, and will keep your books straight for you. Set aside a set amount for advertising, every month. Just consider it one of your most important bills, especially for residential. People will lie to you to get a better price, and seldom does what you are promised work out. What you are starting out doing now, might be very well be 100% different from what you end up making money at. I started detailing cars. Last year, detailing made up .05% of my business. The only reason that I do it is because it is good therapy for me.

I am sure that there are others.

Scott Stone

[tropical wave 22]

Sparklin, Welcome aboard !!!! we are a corporation ,for a couple of reasons, but the main one is that our full time jobs promote many opprotunities for us to be sued...... the Inc. protects "company" assets and are therefore untouchable by a lawsuit.........

use the search feature for insurance, look for Joe Walters, he'll hook you up.. I think the minimum liability he offers is 300K.....but im not sure..

I see you are in Riverview Fl, I just (last fall) got my dad set up in a subdivision called Panther Trace off of 301......Im sure you know where it is..... lots of new construction going on all over the place down there.....Im trying to get down for more visits, (golf and beers) maybe we can hook up sooner or later and compare "notes"....PM me or email if you would like.......good luck !!!

[ROBGIO 14]

I am the sole owner of my company and prefer not to do business with friends or family....as said before....doing business with them, it's a good way to lose them.

I chose to become a Limited Liability Corporation from Sole Proprietor that I was before, because it protects my personal assets. The same with a Corporation.

A Corporation however, is a little more complex: there are attorneys involved, minutes to keep, and different people to title (President, VP, Secretary, etc.).

I'm not sure if most States give you the choice to become an L.L.C. but look into the Pro's and Con's for your specific needs.

[newlook 265]

We are a S corporation.

[Celeste 341]

We're an LLC :)