Starting a business

[onebaddmaxxx]

So it seems as if I have taken on a few truck accounts, and I am always getting side work for parts installs, and built a few engines etc. I have tons of background on all GM's as I use to work at the dealer as their top duramax mechanic. I use to work at a big time for shop so I know the ins and outs of power strokes and can pull cabs super easy on them all use an IDS to diag them. I also know dodges well as iv worked on tons of them. Im a mechanic by trade now, have a huge 3bay box with every drawer loaded with tools. I have separate cabinets with service tools as well. I understand its going to take probably all of my time at first. There isn't any real good duramax shops around in my area. The closest one about 4 hrs away up north in the next state. plus i figure having the experience of the others is a plus. I just want to go out on my own. Iv found a shop already thats 3 bay, and has a 2 post and drive on lift and a flat stall. I already have accounts lined up for dealer pricing on parts. Besides getting a business license, a DBA, and a tax id, what else do I need? I think i will need insurance as well. Just curious how the other owners here operate. Do you pay for everything of yours through the business? or do you pay yourself a check every week? How much money do you recommend having on tap to be able to sit on to survive? 10k? 20k? I don't think id have to spend a whole lot to get started except maybe buy a welder, and some other small things. I have some sitting here, but assuming the business account likely will have a business credit card with it, I can use it and pay it off as work goes out and stay on top of it until the business has enough income to get it going. Just curious how some of you guys started out.

I will try to do it by myself at first, because I think if you don't have any employees you don't need and EIN for taxes.

Any help is appreciated.

 

[ToyhaulerTom]

WOW,
I don't know anything about setting up a business, but I'm pulling for you. If I wasn't on the left coast I'd send my business your way. Need a set of new VR LBZ headbolts?
Tom

 

[NJ_LLY]

Stay as small as you can for as long as you can. There have been a ton of fly by night shops since I first got into this that got way in over their heads fast then just disappeared. (Trent) Hell, there was even a guy that faked his own death by burning the shop down with a body inside. Only employ people you would let work on your stuff because if you don't trust them to do that you shouldn't let them touch a customers vehicle.

 

[thunder550]

Liability insurance and a separate business entity are the two most important things IMO. Insurance is really important so you don't have to pay out of pocket in case you damage a vehicle or in case someone gets hurt on your property. Operating as a LLC or some separate entity where you can't be held personally liable for business operations is important too, you don't want to get sued for working on something and end up losing your house or personal property as a result.

You could make tons of money and have a great name and tons of happy customers, but all it would take is one disgruntled customer and a million dollar lawsuit to ruin it all. Protect yourself first.

 

[onebaddmaxxx]

That's true. How do you set up an LLC? Who do you talk to about setting it up.

I'd like to stay small, as in only maybe having a trusty person up front ordering parts and answering phones so I can keep working.

 

[NinjaMax]

That's true. How do you set up an LLC? Who do you talk to about setting it up.

I'd like to stay small, as in only maybe having a trusty person up front ordering parts and answering phones so I can keep working.

We just set up a llc last year, the best thing you can do at this point is go find a GOOD CPA, they will point you in the right direction, and they will also act as your agent for the whole process

 

[thunder550]

That's true. How do you set up an LLC? Who do you talk to about setting it up.

I'd like to stay small, as in only maybe having a trusty person up front ordering parts and answering phones so I can keep working.

Every state is different. In AZ it's a one time $35 fee and there's a form you have to fill out and send to the Corporation Commission. Your state will probably be different.

 

[onebaddmaxxx]

I just looked online. Seems that maryland has a 1 time fee of $25. I think that I need to talk around here locally and see who is a GOOD CPA. Id like to do it on my own, but seems that they do it for a living, and usually they also do taxes. So if all the paper work is going to one spot and I drop everything off weekly, it shouldn't be too bad.

 

[NinjaMax]

I just looked online. Seems that maryland has a 1 time fee of $25. I think that I need to talk around here locally and see who is a GOOD CPA. Id like to do it on my own, but seems that they do it for a living, and usually they also do taxes. So if all the paper work is going to one spot and I drop everything off weekly, it shouldn't be too bad.

Ya that sounds right, we were 34$ I believe for a license here in co. Look into doing an S Corp classification. I'm not sure if it will benefit in your application, but its worth a look, your CPA can tell you.

As for doing it on your own, the only thing you'll use them for is payroll taxes, and all the correct fillings..they are well worth the money

 

[jacobdewey]

X100 on the cpa. Alot of successful businesses get caught with their pants down when they start making good money. We pay alot for our cpa, and he is worth every penny.

 

[DetailsUnlimited]

Get a good CPA. But also do quickbooks so you personally know what's going on with your books.

 

[NinjaMax]

Get a good CPA. But also do quickbooks so you personally know what's going on with your books.

X2, our CPA coded our quickbooks for us.:thumb:

 

[onebaddmaxxx]

X2, our CPA coded our quickbooks for us.:thumb:

What do you mean coded?

 

[meshanic]

Aside from being set of as a wholesaler with the dealership I would also recommend getting an account with a performance parts dealer. I spend 10x more on performance parts than dealer parts.

 

[DetailsUnlimited]

Never do anything on credit for anyone. Meaning IOU's.

 

[NinjaMax]

Its the coding system QuickBooks pro uses for all your expenses, tax's, accounts, etc..gave him our business plan and told him exactly what it is we do. Then he gave a very detailed breakdown by code..so every possible expense or income that's specific to our company had a place to go.

 

[onebaddmaxxx]

Its the coding system QuickBooks pro uses for all your expenses, tax's, accounts, etc..gave him our business plan and told him exactly what it is we do. Then he gave a very detailed breakdown by code..so every possible expense or income that's specific to our company had a place to go.

So how do you do it? Sit down once a week and enter the expenses and income into the correct folder it belongs? Or what...?

Also, already have all the accounts lined up on the performance parts places. Already a dealer for PPE, and likely gonna try to get hooked up with premier. There is a shop about 1.5hrs north that is a wholesaler for performance parts and they have smoking deals. They are also an Alliant power dealer, which will be good for the ford trucks I will be working on. Considering everything they usually have in stock and free next day shipping

 

[NinjaMax]

So how do you do it? Sit down once a week and enter the expenses and income into the correct folder it belongs? Or what...?

Exactly, every Friday if I can I reconcile my accounts. Run my bank statements against my QuickBooks, (only works if your bank is tied to your account) as you go you'll add the code with whatever the bank statement item is, ei fluids, rents, 3rd party, etc...that code will automatically put it in its correct place,

 

[onebaddmaxxx]

Sounds pricey to get setup but i think it will def be worth it and make it easier.

 

[NinjaMax]

Sounds pricey to get setup but i think it will def be worth it and make it easier.

Not at all, it was a little over 250$ to get the QuickBooks set up. I think I paid 500 for the actual software. To tie in the bank its like 17$ or 25$ a monthly. Just have to give it your banking info.