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Working from home questions
- Thread starter Chris...
- Start date
Gino
Premium Subscriber
I don't know how you can wrap vehicles in your basement, but let's address your question.
Once you have those answered, then we can give you information on how to conduct a business down there including tax benefits.
- Does your basement have an entranceway from outside, besides the one going down from a door inside your home ??
- Not a sloped steel cellar door
- Do you have a bathroom in your basement, that is not connected to the wash room or furnace area ??
- Do you have some sorta waiting room or area for customers to congregate ??
- Do you have a parking area other than in the street for customers ??
- Are you allowed to operate a business out of your home legally ??
- Do you have proper licenses and permits to operate a business in your home ??
- Are you properly insured for a business down in your basement ??
Once you have those answered, then we can give you information on how to conduct a business down there including tax benefits.
Jester1167
Premium Subscriber
1. Create at least an LLC for some personal protections.
2. Get an EIN to safeguard your SSN.
3. Appropriate licensing and General Liability Insurance is a must.
4. Separate bank and savings account for your business. Comingled funds make it easier for lawyers to pierce the corporate veil.
5. Schedule client meetings at their location or other meeting places like Starbucks or a business incubator.
6. If you need an install bay, rent a storage facility.
7. Outsource until you build the volume to support space and equipment.
8. Charge enough to rent space whether you have it or not, as well as licensing and insurance. If you don't charge now you'll never be able to afford the space and your cheap customers won't stick with you when you have to raise your prices.
2. Get an EIN to safeguard your SSN.
3. Appropriate licensing and General Liability Insurance is a must.
4. Separate bank and savings account for your business. Comingled funds make it easier for lawyers to pierce the corporate veil.
5. Schedule client meetings at their location or other meeting places like Starbucks or a business incubator.
6. If you need an install bay, rent a storage facility.
7. Outsource until you build the volume to support space and equipment.
8. Charge enough to rent space whether you have it or not, as well as licensing and insurance. If you don't charge now you'll never be able to afford the space and your cheap customers won't stick with you when you have to raise your prices.
signbrad
New Member
Chris,
I worked out of a house and garage for 8 years in Illinois, then 26 years in Arkansas.
Easily, my biggest mistake was not talking to an accountant at the very beginning. When I finally did, he helped me in many ways. Tax deductions for a home business was just one of many areas. Incorporating, setting up payroll, even just figuring an hourly rate so that I made a profit, not just wages. I didn't know how clueless I was.
Point No.8 above in Jester1167's post was one of many things my accountant helped me understand. If you start out cheap because you work out of your home, you will have a harder time later when you start paying rent for a shop. And cheap prices will attract a certain number of cheapskate customers that you will have to dump later.
When I was ready to borrow SBA money, my accountant even steered me toward the best bank to go to.
He became my business's best friend.
Brad in Kansas City
I worked out of a house and garage for 8 years in Illinois, then 26 years in Arkansas.
Easily, my biggest mistake was not talking to an accountant at the very beginning. When I finally did, he helped me in many ways. Tax deductions for a home business was just one of many areas. Incorporating, setting up payroll, even just figuring an hourly rate so that I made a profit, not just wages. I didn't know how clueless I was.
Point No.8 above in Jester1167's post was one of many things my accountant helped me understand. If you start out cheap because you work out of your home, you will have a harder time later when you start paying rent for a shop. And cheap prices will attract a certain number of cheapskate customers that you will have to dump later.
When I was ready to borrow SBA money, my accountant even steered me toward the best bank to go to.
He became my business's best friend.
Brad in Kansas City
I called my accountant last week. She asked a few questions that have been asked here. Right now I'm not doing vehicle wraps and don't plan on getting back in to them. I am working with a company that outsources it's cut vinyl decal business. I had a meeting with them before I had even decided to give it a go. They sell retail and I am supplying them. I'm at a time in my life where I just want to do something up until I retire, 10 years tops.
visual800
Active Member
ive been homebased for a looooong time. My CPA writes off a percentage of all utilities, insurances for the home and writes a off a percentage of the space I take up working here. I do not entertain clients at the house I always go to them. Im not bothered by pop-ins which I am very thankful. I can do everything at home that a normal sign shop can within reason except 18 wheelers, of course.
My advice is lern to seperate home from work, which is very easy to do after a few years, it will wear you down having such easy access to work
My advice is lern to seperate home from work, which is very easy to do after a few years, it will wear you down having such easy access to work
ams
New Member
This is going to be a touche' thread. Some people prefer brick and mortar shops and others prefer home based. I am the kind of person who prefers brick and mortar. However I started out from my home as a mobile business.
Issues I found with Residential shop:
#1. The county restricted any customers from coming to my house. It was residential only.
#2. I lived out in the woods, even being 4 miles from town, most people wouldn't come find me, it was out of their way.
#3. No advertising, no signs for anyone to see, had to rely on other methods.
#4. Phone calls from customers but also telemarketers, vendors, web hosting companies, etc, all day and night.
#5. Too small no room to grow unless you have a 5,000 sq. ft. shop.
Brick and Mortar is the opposite, except phone calls but they come to the shop and not my house number or cell phone. It is a professional setting. If you were going to buy your weekly groceries, would you go to a grocery store or to a side of the road, hole in the wall convenience store? If you want car repairs, do you go to a trusted shop or to the redneck down the street that doesn't have any signs or business cards and someone referred you to him.
When it comes to signs, I feel the need to be as professional as possible. From polo shirts with my name and logo stitched in them, to a nice showroom with samples. When customers walk in they think, wow this guy knows what he is doing. Granted some people don't care about what you did, what the quality is or how cheap. But that is just my opinion. There are good and bad to both sides.
Workers comp is expensive and you don't have to deal with that home based. (At least in VA you have to have a minimum of 3 employees not including yourself).
You have insurance on everything, taxes, extra taxes for me being within city limits, etc.
Phone and internet is cheaper in residential.
You can work all day in your pajamas.
But anyways, I feel brick and mortar is the way to go if you want to continue growing and make it a career. If you are happy at staying at a small level and not growing, that is fine. Whichever way you go, just don't try to undercut other shops, it's a bad idea.
*Almost forgot to mention, with brick and mortar prepare to work 40 - 50 hour weeks. If you randomly close early or don't open, you will lose a ton of business. Home based you can work when you want to, unless you are zoned both and have a storefront. So brick and mortar for full time, residential is okay for part time.
Issues I found with Residential shop:
#1. The county restricted any customers from coming to my house. It was residential only.
#2. I lived out in the woods, even being 4 miles from town, most people wouldn't come find me, it was out of their way.
#3. No advertising, no signs for anyone to see, had to rely on other methods.
#4. Phone calls from customers but also telemarketers, vendors, web hosting companies, etc, all day and night.
#5. Too small no room to grow unless you have a 5,000 sq. ft. shop.
Brick and Mortar is the opposite, except phone calls but they come to the shop and not my house number or cell phone. It is a professional setting. If you were going to buy your weekly groceries, would you go to a grocery store or to a side of the road, hole in the wall convenience store? If you want car repairs, do you go to a trusted shop or to the redneck down the street that doesn't have any signs or business cards and someone referred you to him.
When it comes to signs, I feel the need to be as professional as possible. From polo shirts with my name and logo stitched in them, to a nice showroom with samples. When customers walk in they think, wow this guy knows what he is doing. Granted some people don't care about what you did, what the quality is or how cheap. But that is just my opinion. There are good and bad to both sides.
Workers comp is expensive and you don't have to deal with that home based. (At least in VA you have to have a minimum of 3 employees not including yourself).
You have insurance on everything, taxes, extra taxes for me being within city limits, etc.
Phone and internet is cheaper in residential.
You can work all day in your pajamas.
But anyways, I feel brick and mortar is the way to go if you want to continue growing and make it a career. If you are happy at staying at a small level and not growing, that is fine. Whichever way you go, just don't try to undercut other shops, it's a bad idea.
*Almost forgot to mention, with brick and mortar prepare to work 40 - 50 hour weeks. If you randomly close early or don't open, you will lose a ton of business. Home based you can work when you want to, unless you are zoned both and have a storefront. So brick and mortar for full time, residential is okay for part time.
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Go visit a CPA. Get your business setup right. If you're actually making some money (not a few hundred bucks every few weeks) you're going to want to have your company setup right. Part of this will be getting an accounting software setup. Some people can do it themselves and others get a book keeper to take care of things about once a month. It's whatever you're comfortable with.
ddarlak
Go Bills!
1. Setting up an LLC is not necessary, if you are properly insured, then you are covered. If your ever sued, lawyers go after insurance policies, not people.
2. getting a EIN is so easy it's not worth not getting one.
3. Insurance is a must, licensing - get the least you can get away with. most is government bullchit
4. get a separate bank account only if you don't pay any fee's. If you are paying fee's then your wasting money.
5. meetings in your basement is probably not a great idea unless you have a really cool setup and your confident.
6. make friends with anyone who has a space you can install in if you need it, doing cheap work for them is better than paying for storage.
7. outsource when you have to
8. understand that a sign is worth what you can sell it for. sometimes you make $8 and hour sometimes you make $200 an hour. pricing things high and sitting there twittering your thumbs isn't good and charging too little and working your *** off isn't good, find your happy medium.
9. ignore gino
Chris, It sounds like you and are in in similar situations. Last February I quit my print sales job and went BACK out on my own. I was looking for something to do for the next 10 - 12 years as well. However in the past (1990 to 2010) I had owned a commercial printing business with 15 to 20 employees, 20,000 sq feet of shop, 2 unions and about $2,000,000 in sales. So far this year I have about $220,000 YTD in sales, no employees, working out of my basement with my own equipment. I've never been happier. I know every dollar I make is for me, not for some landlord, employee, etc.
Key things to make sure you do, not necessarily in this order:
Insurance man is your friend. Explain what you do so he can make sure you are covered for that plate glass window you break while installing graphics and your ladder falls into it.
Form a LLC. Get a EIN. It's foolish not to and covers your *** if you ever go belly up.
Form separate banks accounts, phone numbers (even if you use google voice to forward to your cell, you can at least have that go to vm during off hours.)
Get appropriate permits. Most places allow small business out of their homes as long as it doesn't generate traffic or pollution.
Form good relationships with outer graphics guys. You never know when you will need help or to outsource. Have good relationships with others in the trade is a great insurance policy.
Don't under value your work, regardless of your expenses.
Plan how you address your work place with customers. I have had no issues from mine about working from home and I have several national accounts as well as local. But if asked have a reply and act professional.
I do not miss walk ups/ins. More times than not they are more hassle than they are worth.
While I am pretty sure I could have my shop off sight, I have no interest. I like the idea that if I need to run 100 feet of banner material, I can set it up in the basement in the evening and go check on it as needed while being around my family.
Good Luck!
Key things to make sure you do, not necessarily in this order:
Insurance man is your friend. Explain what you do so he can make sure you are covered for that plate glass window you break while installing graphics and your ladder falls into it.
Form a LLC. Get a EIN. It's foolish not to and covers your *** if you ever go belly up.
Form separate banks accounts, phone numbers (even if you use google voice to forward to your cell, you can at least have that go to vm during off hours.)
Get appropriate permits. Most places allow small business out of their homes as long as it doesn't generate traffic or pollution.
Form good relationships with outer graphics guys. You never know when you will need help or to outsource. Have good relationships with others in the trade is a great insurance policy.
Don't under value your work, regardless of your expenses.
Plan how you address your work place with customers. I have had no issues from mine about working from home and I have several national accounts as well as local. But if asked have a reply and act professional.
I do not miss walk ups/ins. More times than not they are more hassle than they are worth.
While I am pretty sure I could have my shop off sight, I have no interest. I like the idea that if I need to run 100 feet of banner material, I can set it up in the basement in the evening and go check on it as needed while being around my family.
Good Luck!
so, gino, i guess the first thing he should do is hire a compliance officer?
you sound like one of those guys that has a 6 year old arrested for selling lemonade at the end of his parent's driveway.
of course he has to comply with local regulations, but these should not be his FIRST concerns.
he obviously should not have a stream of clients in and out of the house all day long, but, i doubt this would be the case.
you sound like one of those guys that has a 6 year old arrested for selling lemonade at the end of his parent's driveway.
of course he has to comply with local regulations, but these should not be his FIRST concerns.
he obviously should not have a stream of clients in and out of the house all day long, but, i doubt this would be the case.
Gino
Premium Subscriber
Seems we have another thread in which most of you can't comprehend what the OP asked. He didn't ask about how to set up a business in his basement and attract customers...... he didn't ask how to run a business out of his basement.......... he didn't ask how to go full-time..... He asked what's needed for tax purposes in his situation. When you people learn to answer what is asked, maybe this place will stop having so many arguments. However, that requires certain reading skills and judging by your written skills, that's a scarcity, also.
How does a 6-year old selling lemonade even get into a conversation like this ?? Do you always go to emotional levels to make a dumb point ?? :ROFLMAO:
How does a 6-year old selling lemonade even get into a conversation like this ?? Do you always go to emotional levels to make a dumb point ?? :ROFLMAO:
