Question about starting a cash only small business (licenses, credit card, owner)

[Lou Gehrig]

I am currently a stay at home dad. I have some spare time and wondered about doing some Rent-a-hubby type thing. Nothing major like electrical repair but I am handy with basic tools.

Wondered whether it would be worth the hassle to incorporate or do anything like that or just go out on my own and work?

Obviously, the two big issues are tax implications and liability.

[pvande55]

I have known a few who had mostly cash businesses, and they got audited almost every year. So keep good records.

[Thursday007]

Don't get Incorporated you WILL get screwed tax wise. You can still have yourself bonded and insured for injury and liability.

[texdav]

I would to help protect your person assets from liability problems . Liability is a serious issue now days as well as insurance/bond.Pay your taxes and no problems.

[Thursday007]

There are a number of websites devoted to the pros and cons of doing this. Here are a couple.

The Pros and Cons of Different Business Structures | Company Activities & Management > Company Structures & Ownership from AllBusiness.com

Thoughts on Going Cash Only- The Benefits and Drawbacks of Not Using Credit Cards

[bustaduke]

Originally Posted by Macanudo

I am currently a stay at home dad. I have some spare time and wondered about doing some Rent-a-hubby type thing. Nothing major like electrical repair but I am handy with basic tools.

Wondered whether it would be worth the hassle to incorporate or do anything like that or just go out on my own and work?

Obviously, the two big issues are tax implications and liability.

Depends on how large you're planing on getting. Incorporating will protect your personal assets and long as you don't pierce the corporate vale..

One thing to remember if you're going to purchase general liability insurance and workmens comp, or if you're going to get credit cards they will make you sign personally so if you fail your corporation wont protect you.

Same with a truck, trailer, tools, etc., they will all require you to personally guarantee any loan you make.

Also you need to check your States licensing laws for handymen. Some don't require one at all, some require one if you're doing jobs over a fixed amount. Anyone that requires a licenses will also require that you carry insurance.

So States like Louisiana require that you have $10K in assets for you business and have three licensed contractors sponsor you before you can take the test. Plus each local Parish (you most likely have county's) requires that I carry a licenses through them also.

In Louisiana it's all about the State, Parishes getting there licenses fee and tax cut before you see one red cent.

It was even worse when I had my restaurant. I had to pay every month a tax to the city, plus a tax to the parish, plus a tax to the state , plus a tax to the feds. And on top of that I had to pay an accountant just to figure out what I needed to pay. And you wonder why a lot of business go out of business. I was doing over $5K a day and after all was accounted for I was lucky to put $500 in my pocket.


Anyway some States only require that you pay a fee with no test at all.

Check with your State to get the answers that you're looking for.

busta