Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > General Issues > General Small Business Issues
Register Search Today's Posts Mark Forums Read

Reply
 
Thread Tools
Old 20th June 2007, 10:20 PM   #1
MOWERMAN
Member
 

Join Date: Jun 2007
Location: Connecticut
Posts: 5
Default New Business Questions......

Hello everyone....

I recently started a PART-TIME business I run out of my home. I have converted my 3 car garage into a shop area. I repair lawn mowers, lawn tractors, snow blowers, tillers....ect.

During the day I work 8 hours for a company....At night I turn into MOWERMAN! lol

Over the past two months of doing this I have generated enough extra income to purchase some needed equipment and tools without having too take the monies from my personal bank account.

Presently this is a CASH business. Customers either hand me cash or write out a check with my name on it. I AM NOT registered with any local or state offices at this time. I buy my parts from a local power equipment dealer at a discounted rate.

My workload comes in to me via appointment only so I don't have people showing up at my home all hours of the day. This helps keep the neighbors happy!

My question is....should I LEGALIZE my business now or wait until it grows some more to the point that I need to relocate to a commercial piece of property?

I'm in the conception stage of my business at this time and DO want to see it grow into a FULL-TIME operation with multiple employee's but not sure if I should register my business now or wait.

What are some pro's and con's of my present business operation?

Thanks!

Tom

MOWERMAN is offline   Reply With Quote
Register or log in to remove this ad.
Old 21st June 2007, 07:32 AM   #2
pete
VIP Contributor
 
pete's Avatar
 

Join Date: Jul 2005
Location: Hampton Roads, VA
Posts: 488
Default

Going legal may put you out of business at your home.

Many localities include a zoning inspection when applying for a business license and having a business such as yours might not be accepted in your area. Limiting traffic is good, but they don't care, it's only the potential for abuse that they look at. Plus, in your case, I would think noise would be a big concern.

I am a strong advocate of start legal, stay legal, but in your situation you might do well to stay under the radar as long as possible. Unless you're ready to find a small shop to rent for your still part-time operation.

pete is offline   Reply With Quote
Old 21st June 2007, 09:28 PM   #3
MOWERMAN
Member
 

Join Date: Jun 2007
Location: Connecticut
Posts: 5
Default

Those were my thoughts as well.....

I would like to find a small shop CHEAP but there is no such thing in my area!

No big deal...gonna keep doing what I'm doing until I'm ready to take the next big step and lease a building!

MOWERMAN is offline   Reply With Quote
Old 25th June 2007, 10:57 AM   #4
Raise Capital
VIP Contributor
 
Raise Capital's Avatar
 

Join Date: Oct 2006
Location: Houston, TX
Posts: 165
Default

Pete,

I agree. There are many businesses that do not legalize their operations until they move out into the commercial world (Office or retail locations). Since this is an extra income, do you claim it on your taxes?

Raise Capital is offline   Reply With Quote
Old 26th June 2007, 06:11 AM   #5
MOWERMAN
Member
 

Join Date: Jun 2007
Location: Connecticut
Posts: 5
Default

Quote:
Originally Posted by Raise Capital View Post
Pete,

I agree. There are many businesses that do not legalize their operations until they move out into the commercial world (Office or retail locations). Since this is an extra income, do you claim it on your taxes?
If I'm going to CLAIM this as income I would also have to CLAIM all my expenses as well (marketing materials, $1000 worth of specialty tools, gave up our garage area for my shop-900 square feet and so on). In order to claim my expenses I would have to be a REGISTERED BUSINESS.

I'm not making thousands of dollars a week doing this. It is sorta like when you sell an old car you have...do YOU claim that as income?

MOWERMAN is offline   Reply With Quote
Old 26th June 2007, 06:57 AM   #6
mktgbiz
Moderator
 
mktgbiz's Avatar
 

Join Date: Dec 2004
Location: New Port Richey, FL
Posts: 1,523

Default

Legalize?

Who says it's not legal.

Personally I'd keep operating as you are. Do things on your time, in your time and for however much you'd like to charge.

Claim what as income? If you are walking down the street and find a $20.00 bill do you claim that as income? If you find a $50.00 or a $100.00 bill do you claim that as income? Naw.

Just keep doin' what you are doin'.........

-

__________________
10 years and running....still the most-loved promotional product!
www.TheJavelinPen.com
Holiday Greeting Cards:
www.holidaycardwebiste.com/getmorebiznow
mktgbiz is offline   Reply With Quote
Old 26th June 2007, 07:03 AM   #7
pete
VIP Contributor
 
pete's Avatar
 

Join Date: Jul 2005
Location: Hampton Roads, VA
Posts: 488
Default

I don't think you have to have a registered business to claim the income. The IRS is interested in their share of what you made, not much concerned about enforcing local zoning and licensing laws. In 40 years of being in business, I have never been asked by the IRS to produce a business license.

And tghe car deal is not the same. It is an incidental sale of assets, not a form of normal income. And it was bought with after tax income, so it would not be taxed again.

pete is offline   Reply With Quote
Reply   

Bookmarks




Thread Tools

Get Updates
RSS Feeds:
RSS Feed for General Small Business Issues RSS for this Category Only: General Small Business Issues

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


Small Business Ideas Forum


 
At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
 
Search Engine Guide
Small business guide to search marketing

 
Small Business Brief
Fetching the Best Small Business Info


Free Links - Free Advertising
Free Guide - Online Directory



Advertise your business here
Contact us for more details!


Semantic Juice
Register now to access free Quick SEO service!


Rocket Lawyer
Sign up for free 7 day trial. Boost your biz!


Buy UPC Codes
Get your products listed online!




All times are GMT -5. The time now is 08:05 PM.


Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy