Making Scrapping a side business

Also anything I can to do help

How to keep my books in order
Can I claim mileage?
Can I claim part of my house/shop?

What are the cons?

Will I be taxed to death?

Originally Posted by Mick

Check your State laws. You may need a license and insurance. Here, you simply say you are in the business of XXX. It's not necessary to actually do anything. For instance, I was insured as a Landscaper although I have never had any associated equipment, tools and have never ANY work as such. For the curious, it was because of insurance as a snowplower. I only needed insurance for it for six months although they required a full-year policy. So I put down "Landscaper" with cheaper rates. Technically, I was in business as a Landscaper and Snowplower.

If you dont mind how much is insurance.
Also did you have people sign contracts?

Im more afraid of someone wanting a pile of scrap taken out of there yard and then accusing me of tearing up there yard.
Maybe someone getting hurt that is helping me ect ect.
If I would land a contact job I would need help. If someone who was helping me where to get hurt I dont want to be liable.

Originally Posted by Mick

Quckbooks SimpleStart and TurboTax is what I have used for five years.

Duh, Ive used quickbooks before haha

Thanks

Originally Posted by Russell

Before you use an assumed name you must file it within any state and then you must file with each state you do business in. If you incorporate within the state you operate and are using a ficticious name like: Big joshes scrap metal, inc. You can have a lawyer file for you, you can use an online service, or file yourself. You cannot use a ficticious name unless it registered. Think of your business filing as like its social security #. It keeps track of your operations that is separate from you as a person. Which also helps eliminate a lot of liability from your personal assets.

If you choose to operate as a sole proprietor you hold personal responsibility for damages, you have to use your full name before your title: Josh smith scrap metal. your social security # acts as your business id#. Each state has different variations I would check out exactly the state you choose to file in and operate in. State filing fees vary greatly I would recommend filing in the state you are operating in for simplification purposes. Illinois (my operating state) is by far the most expensive state. $500 filing fee +filing expenses ie: lawyer, service fees, etc. Indiana is far cheaper at around $70 filing fee + expenses.

Good luck do a lot of research before you take action. %90 of business fails within 2 years.

Thanks for the information. I have been doing lots of research.

I am still on the fence about what I want to do.

Insurance for my business runs about $ 100 per month. I have it mostly for liability if something were to fly off the trailer or the trailer cut free and hit another vehicle. The other concern is starting a fire, since I am cutting in fields and shelter belts. My insurance covers a farm restoration business, probably a little more expensive than Mick's. I could not find insurance to cover scrapping as a business. I would like to know if others on the site have insurance to cover scrapping.

I avoid liability for others by contracting with them. I just offer them a percentage of the take, therefore they are working for themselves. 99% of the time I work on my own so this is seldom a concern. Good Luck

Originally Posted by ffjosh

If you dont mind how much is insurance.
Also did you have people sign contracts?

Im more afraid of someone wanting a pile of scrap taken out of there yard and then accusing me of tearing up there yard.
Maybe someone getting hurt that is helping me ect ect.
If I would land a contact job I would need help. If someone who was helping me where to get hurt I dont want to be liable.

I pay roughly $1000 per year (thats about $90 a month) for 500k business liability insurance, but it should be lower if you only have one "area" of occupation. I have five (lawncare, landscaping, pressure washing, debris removal, and....something else, lol). I wouldn't suggest putting anybody on your "books" until you have cash saved up. If they screw up, it could be everything for you. Just work for yourself and try to pay under the counter if you have to, or barter for labor.