Limited Liability Corp.

rayoto

rayoto

Nice and Cool
I had a friend tell me that I should consider setting up an LLC. Don't know if I want to deal with all that is involved in it or not. I am a weekender detailing no more than 3 cars per week. I suppose the biggest benefit would be the protection an LLC offers. What are your opinions?;)
 
you probably don't need to set up as an LLC but getting some liability insurance would be a better idea.
The only advantage of a LLC would be if you were making a lot of money, taking on a partner, or it was affecting your taxes, in which case you should contact your accountant.:)
 
If it's just you working and you don't plan on having any employees just get a DBA(doing business as) or sole proprietor and a fictitious name. This is what I have done as I don't plan on having any employees, I sometimes call on a helper for some bigger jobs like boats or if I just don't have a lot of time to finish a job. It's very cheap, easy, and fast to get these two things.
 
musicawal said:
If it's just you working and you don't plan on having any employees just get a DBA(doing business as) or sole proprietor and a fictitious name. This is what I have done as I don't plan on having any employees, I sometimes call on a helper for some bigger jobs like boats or if I just don't have a lot of time to finish a job. It's very cheap, easy, and fast to get these two things.
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My main concern is the possiblilty of lawsuit for a damaged vehicle (wreck, paint). I'm not sure the DBA would provide the protection I need. So far the cars I have done have involved me p/u their car and detailing it at my home.
 
rayoto said:
My main concern is the possiblilty of lawsuit for a damaged vehicle (wreck, paint). I'm not sure the DBA would provide the protection I need. So far the cars I have done have involved me p/u their car and detailing it at my home.
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that's why you need liability insurance;)
 
LLCs do help seperate your personal assets from your business assets. If you wreck a car or burn down someone's house and your insurance isn't enough, then you don't want them coming after your personal assets. An LLC helps keep your home seperate from your business. I lease myself my vehicle, garage space, office, everything. The only thing the business owns are the products and tools of the trade.

Here is my favorite resource for this kind of stuff. As a paralegal I reference nolo all the time. They have some of the best books on this kind of stuff. Most of what I do is in intellectual property, trademarks, and patents, but this kind of information still comes in handy. :)

Barnes and Noble should come in handy if you are looking for a good book. There are many "LLC in a box" type things out there that give you all the forms and everything you need. They supply everything you need on a disc and explain how taxes and that stuff works. I've got a couple of them. When I started my business I bought "The Complete Limited Liability Comapny Kit" by Mark Warda. It is published by Sphinx Publishing and was the most complete resource I found. I also bought "Accounting for Dummies" which helps with the tax part of the business. Those are two resources I can definitely recommend. I paid $25 for the first one and $20 for the second one. That is much cheaper than a lawyer. ;)

There are offices like We The People :: Main page that would be able to help prepare your business without the cost of attorneys. I actually interviewed with them a year or so ago for a director of training position. They have a really smooth operation and it would be someplace that I would suggest for people wanting to avoid the cost of attorneys for things that don't really require them. I wasn't in a position to accept the job offer at the time, but I still keep in touch with them for future opportunites. That would still be my dream job I think...

Bottom line is that if you are going to start a business then it should start with forming the structure. Once you have formed your LLC and your business name is registered with the state and your business license is secured, then you can look into liability insurance and all that fun stuff. It is best to start out with a real legal entity first so that you can legitimize your business. You'll get a lot more business when you have the LLC behind your name and it is obvious you aren't some 16 year old detailing out of the back of his Mom's station wagon. :bigups
 
This may be a topic for a new thread, I was wondering who if anyone does every aspect of there business? For example customer service, accounting, scheduling, and the detailing I am finding myself very overwhelmed by all of this. I currently have two vehicles able to work ,with one part-time employee, I definitely have the client base to keep the vans busy but feel I can't keep up with them will doing everything else. Detailing is my Passion so I never want to cut that out but I could go without having to deal with answering the phone during an intense detail. Ultametly I feel I am running at 65% efficiency and missing out on some good $.
 
I do 80% of the detailing. I've got flunkies who handle the other 20%. My wife's education is in business and accounting, so she handles the taxes and all that fun stuff for me. It isn't that complicated really. She puts 20% of the money aside to pay taxes with and 20% aside to reinvest into the business. The rest of it pays the bills of the business. I don't turn much of a profit as a business, but as an employee I do rather well. ;)

I've learned that while I'm detailing it is more important to focus on the customer at hand than it is to answer the phone. That is why God invented voice mail. ;) I schedule time once a day to follow up with voice mail and email messages and then once a week to follow up with appointments for the following week and with past customers. This week I'm sending out an email to my customers about the dangers of acid rain and the current conditions we are going through. There have been a lot of fires and we haven't been able to see the sky or mountains for a week. When it rains through that stuff it can really mess up your car if it isn't protected. Make sure you schedule time for marketing from time to time. Once a month is good enough for me usually.

Anyway, it is all in how you manage your tasks with the time you have. Time can't really be managed, but you can manage yourself. :) Daily planning is how I keep my schedule straight. You don't need to be a technogeek to plan properly. Just having a paper calendar works for me most of the time. I've got one at home on the wall and one on my Blackberry. Now, I'm not a full time detailer, but I do manage a full time job, a family, and 20 - 30 hours a week as a detailer. If I didn't take time to plan then I would be a wreck.
 
Yoy sound like a very smart man, the way you have it set up is ideal for your situation. My problem is that I have been building this business for the purpose to be a reputable and recognized detailing Co. in Charlotte. My only problem is finding talent and time with a 1 1/2 year old and one on the way.
 
I use 'flunky' as a term of endearment for my guys. I only have two or three people that I ever farm work out to when I'm not able to get to it. They are detailers of the highest skill level and I love having them work with me. :bigups
 
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