Hey DB Does anyone know how to get a mobile detailing business started? Where should you go to get like a permit or license to perform detailing services at dealerships or at clients homes. I want to be legit. Any help will be appreciated! Thanks
your local Chambers of Commerce should get you the information required for your state. You will have to register your business name for use in your state (Nationwide is prob extra $$$) then you need to get a business permit depending where you're working out of (fees vary depending on what you do) then insurance is extra from insurance companies. and thats all I know from my local chambers of commerce when I was looking at business startups
Most of the information you are looking for can be found online. There are a lot of things to consider. -What is the structure going to be--sole-proprietorship, partnership, LLC, s-corp? Generally it isn't a cut and dry decision. Consider where you are now, but also where you would like to be in the future. Your decision will also determine how you are taxed. -Business registration/licensing: local, state and federal. Some cities and municipalities do not allow a business to be based out of a home. In that case you may need an office. Do you plan on pay yourself/having employees? You may need UC insurance. Depending on your state laws, you may need a sales tax license. -You need insurance. How much is dependent on what you plan on doing. I know detailers that carry $50,000 in general liability, and I know detailers that carry closer to $1m. I recommend talking to an insurance agent As you can see, it becomes quite complicated, very fast. I have started and own a few businesses, and I have helped a few detailers get going--it can be a lot more work than most people realize. I highly recommended you do some research and know what you're getting yourself into before you get in too deep. My best advice would be to look around your area for a small business development center. Most universities have them. They often offer free/very cheap seminars to help people get started. Many of them offer free consulting if you attend their seminars.
I agree with everything said already. When I opened my detailing business, I had to register with the City and the State of Washington, to get the licenses and then had to show proof of $1m dollar Liability policy, and follow the guidelines the City set forth as to where I could work. If I wanted to work at home in my garage, I had to allow them to do a "Study" of the area in and around my garage, to make sure I wasnt breaking any other rules/laws, etc... I also bought my Domain Name and pay for that yearly, and made up a Website using Webs.com, Some of the pre-requisites to set up a shop are inexpensive, some are not. I believe my Liability policy costs around $1200 a year. And then Quarterly, the State of WA. pings me to remember to file my Taxes I collected during that previous quarter, and send them the money.. Once you figure all that out, you can then move around Legit, and not have to worry about someone complaining, or the City/County Inspector dropping by to see if you have a License/Permit, etc., or not.. Good Luck, I hope it works out for you ! Dan F
so today I went to a lawyer to setup a LLC, the fees are $500.....does that seem right? or can I do that myself....and do I have to pay sales tax for detailing services??
There is a sales tax on everything you sell, be it an item or service. The government wants your money.
anyone know how many times a year do I have to file my earnings? sorry but I have no idea whats its like, last thing I want is IRS coming after me...
$500 to have a lawyer setup a LLC is not worth it and can be done own your own very easily! Do some some research on your own but you will need to form your entity (LLC, Corp., whichever you choose) with the state of NJ. Next you will need to File for an Federal Employer Identification Number (FEIN) and register your business with the state of NJ. Honestly, if you are needing someone to help, I think it might be a better idea to speak with an Accountant. A lawyer will file the papers and forms, but an accountant can do that plus help you with any questions concerning taxes, filing schedule, etc. Heres a quick link to some info that can answer a lot of questions. Starting a Business info from IRS website Starting a Business
Thanks wheelz25, I told my lawyer to go ahead just today, maybe I should call him tomorrow to cancel this transaction
I certainly dont want to be the deciding factor in what you decide, but it might make sense to seek the advice of an account first to see what kind of help they might be able to offer! Obviously, they will have their own costs so it really comes down to if you feel comfortable doing it yourself and if not, who can offer best service/advice in the long run. you can always check out LegalZoom: Online Legal Document Services: LLC,Wills,Incorporation,Divorce & More as well. i believe we met by the way at phil's over the summer at the open house, I had the quartz grey a4 and we talked for a couple minutes
Phil and I exchange email before about this subject, He said he had accountant done his paper work. Today the lawyer wasn't able to answer all my questions and he directed me to a accountant for those questions. so from what you're saying a accountant can file the papers and prepare for my future taxes. Thats helped me decided not to go the lawyer route. Thank You!!! Yes we met I believe, you brought gallons of stuff, mostly optimum...... ?
I just went to the link wheelz sent me. IRS.Gov and I got my EIN ( employer id number ) so thats what I was paying the lawyer to do.......I think
Well you are still gonna need to create your business by choosing your business type and name with the state of nj here https://www.state.nj.us/cgi-bin/treasury/revenue/dcr/filing/page1.cgi . When you put in your business name it will tell you if it is still available and it will take you through the process. Make sure you read everything carefully and don't rush through it. This is what I think you were going to pay the lawyer for. Really if your still unsure, consult an accountant. and yes that was me.
There are some major advantages and disadvantages to being a Sole Proprietorship. The main advantage is the massive amount of freedom with your earnings. There are also large disadvantages like higher taxes, a very blurry line between personal and business finances, and any liability both debts, and care custody, and control is %100 on your shoulders. If you own a house, a car or any other assets they can be seized by debt collectors, the government, or in a law suit. I would certainly speak to an accountant about your states tax laws and what may or may not benefit you. Here in New York being an S-type corporation was what I thought to be the best option. I would personally recommend spending the first two years as a sole proprietor and making sure this is what you want to do and more importantly that you can succeed at it. This was the advice I was given by my accountant and we were a sole proprietorship for our first 3 years. When it comes to insurance you can pretty much figure out what you need by speaking to an insurance agent. If you do pick up and delivery like we do here you will want $1million in coverage. The reason for this is because you can not control other people and if some one rear ends you in a customers car you can be sued by the customer. Insurance is not a huge expense so there is no reason to cheap out. I am not sure about New Jersey's insurance laws and requirements but expect a range of $150-$250 a month for a good policy.
This ^^^ I wish you the best of luck, but if one area needs more attention than any other its totally understanding all your options (in and out, front to back, top to bottom, etc..) when it comes to business type.
