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General Business Discussions A place to talk about general business discussions.

Average Startup costs?


General Business Discussions

A place to talk about general business discussions.
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  #11  
Old 02-18-2010, 08:10 PM
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Unhappy Sadly

Quote:
Originally Posted by ProCut TM View Post
how many of you guys are riding dirty? (no license & insurance) seems foolish as they are very cheap.
Sadly I must admit Im riding dirty cant justify the expence with so few customers give me a month or 2 when season is in full swing and I will. I am ashamed of the fact but just cant do it now. Will probly lose a few customers from not having it so that alone justifies getting it as soon as possible. I digress.....
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  #12  
Old 02-18-2010, 09:15 PM
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Originally Posted by MountainViewGreenskeeper View Post
Sadly I must admit Im riding dirty cant justify the expence with so few customers give me a month or 2 when season is in full swing and I will. I am ashamed of the fact but just cant do it now. Will probly lose a few customers from not having it so that alone justifies getting it as soon as possible. I digress.....
yearly
license $65
1 million in liability $491

it will get you better accounts, as the higher end customers will ask about it.
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  #13  
Old 02-18-2010, 11:09 PM
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alot more is involved in my state. I need a state tax id, fed tax id, a enterprise or llc which ever i decide to do. DBA (doing business as) is pointless and a waste of money and has very little tax advantages. Liability insurance, Equipment insurance. Off the top of my head. I need between 300-600 to cover all that. 90% of my customers are townhomes or small small single family dwellings and all they care about is their lawns being cut. once i get into commericial accounts is when i'll need the above alot more. just my opinion on it.
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  #14  
Old 02-18-2010, 11:43 PM
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federal employer id # is FREE

fictitious name registration is required in FL $50 LINK

check with your local SBA they can help
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Old 02-19-2010, 09:00 AM
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Quote:
DBA (doing business as) is pointless and a waste of money and has very little tax advantages.
Can you tell us more why you feel this way? I think a lot of members are either doing this or looking into starting a DBA.

Quote:
i use the trunk for my lawn care. Sucks but its better than nothing.
Could you take a picture of your setup? I'd love to see it and think it would inspire others who dont have a truck to start with.
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  #16  
Old 02-19-2010, 10:21 AM
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ok here is what i found on why i would choose an llc or corporation verses a dba.

http://www.businessnameusa.com/info/dba_vs_corp.htm

all information is copied from here. these are not my own words.

WHAT IS A DBA

A dba is just a certificate you are legally required to file. It helps you open a bank account and be legal but it does not protect your personal assets because the business entity is still a sole owner. A sole owner is liable for all civil or financial liability that the business incurs.

WHAT IS A CORPORATION OR LLC

A corporation or LLC is a separate and distinct business entity - separate from its shareholders / owners. Thus, a shareholder's / owner's assets, such as a home, personal bank account, or automobile, are not at stake if the corporation is sued and a court judgment is entered against it for civil or financial liability.

Only the corporate assets are at state. If the corporation has one computer and $1,000 in a corporate bank account, that is all that can be seized. If you file a dba and you are sued, you are liable for all business liability.

Should you file a dba, Incorporate, or Form an LLC

In general, if you are one person, and have a lot of personal assets, incorporate or form an llc. You will be protected. If you don't have a lot of assets ( such as a home and an expensive car ), you may want to just file a dba to start. A corporation, depending on the state you want to incorporate, or form an LLC, may cost $100 to $200 more than a dba but it protects your personal assets. A dba does not protect you. If you file a corporation or an LLC, you don't need a dba.

Note: If you incorporate, the default type of incorporation is a "C" corporation. Then, you can change it to an "S". So, just go ahead and incorporate or file an LLC, you don't have to worry a lot about the type of corporation or LLC.


goto the link for the rest of the info.

in my personal opinion. i'd rather spend the extra money for an llc so if i ever were sued. they couldnt touch my personal assets. just the business assets.
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  #17  
Old 02-19-2010, 11:12 AM
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Lawn Mower: $1,500.00
Trimmer: $500.00
Blower: $200.00

Marketing Material: $250.00
Cell Phone: $100.00
Gas Can: $20.00
Mix Can: $20.00
Trimmer Cord: $30.00

Eye Protection: $15.00
Grass Can: $40.00
Garbage Bags: $30.00
Rake: $30.00
Tarp: $15.00
Garden tools: $50.00


Total: $2,800.00

Does not include Truck payments, Gas, or Oil.
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  #18  
Old 02-19-2010, 11:21 AM
JP Landscaping JP Landscaping is offline
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An LLC is a popular choice for those just starting out. I started out with as a sole proprietorship and got a dba that didn't cost me anything. But I also registered my business name so no one could take it. that cost me $100 for a filing fee. If I remember correctly I get to have that name for 10 years and no one in the state can use it even if i go out of business within that time.

But in this state, you are not required to have a DBA or register your name or basically anything. Except licenses for spraying but that's about it. As far as banking, you could have the checks made out to you personally.

The disadvantage of not having all this is that you can't open a banking account under your business name and your business won't have a banking history so you won't be able to get loans under the business. some banks require you to be in business for a few years before they consider lending your business money. So it is a good idea to at least get a DBA so you can open up a business accoutnt.

As far as being protected from getting sued... Well the person can sue you as well as your company. so It doesn't really protect you if they decide to sue you personally. But i would say most would sue the company if that were to happen.
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  #19  
Old 02-19-2010, 12:15 PM
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Something to think about that most of us have probably skip, is a written business plan; no time like the present to get it done or at least started.
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Old 02-20-2010, 09:49 AM
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When deciding between the llc and the dba, how much does insurance come into play? If you have insurance, wouldn't that protect your assets?
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