Starting your own Business?

[sinwagon]

Good advice, Thank You.

Its very easy to obtain a tax ID for the Fed's, just go to www.irs.gov and I think you can do a search on there for tax ID number. That is how I did it and they gave me a temporary and then sent the permanant in the mail. You can also pay your quarterly taxes, payroll taxes etc. online at www.eftps.com

For the state of MD, I am not sure if you can obtain a tax ID # online or not but you probably can. You can also pay and file the taxes online. You can go to the department of Labor and licensing website at (I think) www.dllr.md.state.us and you can google search (don't know the addy) Comptroller of MD website and go there for other info.

If you are going to take care of this yourself, the making payments etc. May I suggest using Quickbooks. It will cost you about $300 or so to buy the program but in the end it is sooooo worth it! It is the most user friendly software and once you set these accounts up on Quickbooks, it will calculate them for you. You just simply go in and click "Pay quarterly taxes" or something to that effect every 3 months.

I hope this is helpful! I do the bookkeeping, payroll, accounts payable, accounts receivable and the list goes on for MANY companies within one parent company and Quickbooks is the easiest! I had no experience when I started 5 years ago an taught myself w/in a few months how to use it.

 

[sinwagon]

Also, find out if a business name is taken by contacting the Maryland department of assessment and taxation or by going to www.dat.state.md.us

 

[Ken King]

A location, unless you are operating mobile or out of your home/garage/shop.

What are you getting into, electronics repair (I hope) it is truly needed in this area?

If you need help doing a business plan I wrote one for the wife that obtained her a state grant through DOR before she degraded to the point of not being able to work at all. I still have it and could email it to you to use as a guide.

 

[Danzig]

Do you have allot of personal assets that you don't want to lose in a lawsuit or if you just want to make sure you don’t piss off MS. What when you tell her someone is suing you for the “What Estate” you may want to look into becoming a LLP or a LLC. If you are serious about this feel free to PM me. I am in the middle of redoing my small business (new LLP, new name, all new tax id, everything new) and may be able to help.

 

[marianne]

But I hate school.

I hate to fail classses.
Wanna see my college transcript?

No TY.
CSM works with the MD Small Business Development Center. Their "classes" are just one or two days, not a normal semester long college course. You only take the class(es) you feel you need to take and they're relatively inexpensive. Mentors at CSM will meet with you one on one after you put together a business plan even if you don't want to take classes. It's nice because they're a one-stop-shop pointing you directly to everything you need.

I didn't go through all the hoopla they offered but simply took a one-day class at CSM for $70 where they taught you about contracting with the federal gov't. They gave out a list of 10 steps you need to go through with links/direct contacts for each step and talked about grants & loans to help get started. Previously, I had heard that it was impossible to do work with the Fed -- that you needed DCAA audited rates and it was a logistical nightmare. Not the case at all. In one weekend can you do everything you need to have your business ready to go. Take a look at http://www.sbdchelp.com/. I promise it's not that bad.

I suggest you start by developing your business plan. That's where you figure out what you're selling/servicing, financials and break even points, etc. After you have a business plan drafted you then go onto the next steps. The link above has guidance on writing business plans.

 

[crabcake]

Try SCORE ... they help with developing business plans, advice, etc. and are a partner with the SBA.

 

[jazz lady]

We need to talk Young Lady.

Any time. I have a few years experience, both good and bad, with running a small business. You've gotten some very good advice in this thread.

 

[DoWhat]

Any time. I have a few years experience, both good and bad, with running a small business. You've gotten some very good advice in this thread.

I would like to start a small repair (electronics) shop, out of the house.

Don't know if I should do it under the table or go the legal route.

But then again, I need customers first.

 

[crabcake]

I would like to start a small repair (electronics) shop, out of the house.

Honestly speaking (don't mean to dash your idea), but nowadays, most 'electronics' are cheaper to just replace than pay someone to fix them. TVs (unless it's something like a plasma, dlp, etc.); dvd players; small appliances; etc. I think that's why you don't see many of those stores today like you did years ago.

 

[jazz lady]

I would like to start a small repair (electronics) shop, out of the house.

Don't know if I should do it under the table or go the legal route.

But then again, I need customers first.

I wouldn't advise going under the table. The penalties are pretty severe if you're caught and you're risking your personal assets as well.

 

[DoWhat]

Honestly speaking (don't mean to dash your idea), but nowadays, most 'electronics' are cheaper to just replace than pay someone to fix them. TVs (unless it's something like a plasma, dlp, etc.); dvd players; small appliances; etc. I think that's why you don't see many of those stores today like you did years ago.

I agree with you.
I actually got hired from Samsung (through a contractor) to fix my TV that was under warranty.


Thought I would try something that I enjoy.
If I can't fix it, no charge.

 

[Kain99]

Got any experience with PS2's? My son already opened the unit so we cant send it in for warranty work.

 

[DoWhat]

Got any experience with PS2's? My son already opened the unit so we cant send it in for warranty work.

No, but I can look at it if you like.

What's the problem?

 

[penguin6]

It really doesn't take all that much to go legit. Form a MD LLC, which costs like $200, get a Tax ID number, and then get a business bank account. By the way, those are all necessary steps, a tax id = a business bank account. You won't get a business bank account with out it, unless you use your personal account for that (which is bad).

An LLC allows for "pass through" taxation (i.e. the profits of the company are treated simply as 'income' for the partners in the LLC (i.e. you). If you form a full out corporation, then you have to pay corporate tax + your own personal income tax (i.e. double tax).

"Can't I just do this myself without an LLC or Corp or all that paper?"

Well, the thing about an LLC is it is a 'limited liability corporation' which gives you tremendous protection should things go bad. Say you fix a tv and it blows up and blinds someone. If you do this under the table or just as a non-registered company, they will sue, and they will take all you own. But if you do this as an LLC, they can only go after the assets of the LLC (i.e. whatever you put in the business bank account). If you mix everything between your business and yourself, you are setting yourself up for a mess down the road.

If you were mowing lawns or making gift baskets, then maybe something on the side wouldn't hurt, but for the rather low price of forming an LLC (do a google search on LLC formation Maryland) you'll get tremendous protection, and make things a lot easier.

Just my two thoughts. If you have further questions, spend 30 minutes on google or consult a lawyer friend.

 

[Kain99]

No, but I can look at it if you like.

What's the problem?

I'll ask Jared and let ya know...

 

[DoWhat]

Just my two thoughts. If you have further questions, spend 30 minutes on google or consult a lawyer friend.

Thank You Penguin.
Great advice.

 

[DoWhat]

I'll ask Jared and let ya know...

Is that the Subway Dude?

 

[Kain99]

Is that the Subway Dude?

Nope and just for the record I named my Jared before Subway even dreamed of the ploy!

 

[willie]

Maryland hates small business. It better be very profitable just to pay the taxes. Even if you don't have personal property, like an oscilloscope, you'll still pay $300 filing fee. The Feds will want 15.3% self employment tax. Lord help you if you get an employee but IWIF will drive you nuts even if you don't. Setting up the business is the easy part. I don't remember what it cost to form your LLC but doing it yourself is cheap and easy as is getting your tax ID #. If you're looking to starting a business you enjoy, you better enjoy accounting.

 

[DoWhat]

If you're looking to starting a business you enjoy, you better enjoy accounting.

Now I'm scared.

My business:

Customer: I got a broke TV
Me: I'll try and fix it.
Customer: How much

Me: Whatever it costs in parts and another $50?
Customer: That would be nice.

Me: I will look at it, but I don't guarantee that I will be able to fix it. I will call you before I order any parts, and get your approval.
Customer: I will wait for your call. DoWhat you got a great side business and provide great customer service.
Me: Well, Thank You. See you next time and please let your friends (if you got any) know. Now get the “F” off my property.