The business end of things...

[BigUglySquirrel]

Hey guys, I read through the archives and didn't turn anything up that really fits my situation completely. Hopefully I can get some advice here.

I have a pretty good job...good security, insurance, decent wages. I've got 13+ years going toward my pension. For the last 10 years or so, I've been working my way up through the ranks in the tree business. I'm now at a crossroads. I have as much work available to me as I want as a freelance climber working for other companies, I personally own a very considerable amount of gear, and I'm considering purchasing my own chipper and truck and getting a crew working for me a few days a week while I'm out workin for the man...the ultimate goal being growing the business to the point that leaving my employer to run my own business will actually make me more money.

The "why" behind it all: I love doing tree work and I'm actively looking into some sort of ISA certification, and hope to become an ISA Arborist at some point. Also, my son is 14 and has a very strong interest in tree work that has been evident since he was about 9 years old....it would be great to be able to leave him a legacy if he wants it. I know the hours and work involved in running a business...it's a ton of sacrifice, 5 tons of headaches, and 10 tons of stress. I have helped run the operations for a couple owners and I can do this.

So--my questions:

1.) In my current position, what's the best business structure for me? LLC, S-corp, Sole Proprietorship? I need to FULLY separate my business from my personal finances before I go any further. (po box, bank account, merchant accounts, line of credit, business cards, invoices etc.)

2.) I've looked into TCIA membership...Opinions on this?

3.) Where should I be looking for insurance? Currently I work under the insurance of whoever I'm working for, but I need to move forward.

4.) In my position, am I better to 1099 "contractors", or to payroll "employees"?

5.) What's the best place to start on my ISA arborist ventures?


Thanks so much for any input...my plan is to organize/train through the winter, canvas in the early spring, and work like a dog for the rest of my life.

 

[CNBTreeTrimming]

If you want to separate personal and business the LLC will be the easiest. Also it is much easier to use contract labor than payroll. The catch being they have to show proof that they are insured to do the work you hire them for. Otherwise they will be considered an employee and you will need to pay work comp and payroll taxes.

 

[lxt]

#1. before you go INC. or LLC get your EIN number & stay in sole prop. mode for awhile.........easier to disolve if you dont want to continue!

#2 TCIA is good, but honestly not neccessary!! dont waste your money yet, Often these membership & credentialing agencies only care about selling you educational materials with promise that you will earn more money..........a complete lie!! Were im @ currently they just laid off some people with several credentials & alot of road time & years........to keep a 26 yr old with less than 8mnths in this trade & no credentials at all.................so untill it matters? save your money!

#3 the 1099 & payroll thing is a better question for your CPA!

#4 if you are contract climbing you`re not insured by the employer, you should already have liability insurance & would need to provide whoever contracts you a copy of your certificate of insurance........you should already have this info! if not.........you are not operating legitamately!

#5 ISA certified arborist??? buy the study manual, there are a few other books, climbers companion being one that you should also get!

Good Luck!!!



LXT..................

 

[BigUglySquirrel]

Hey guys...sincere thanks for the input. It sounds like I need to start thinking differently about how I'm using my "tax lady". ...or maybe who I'm using.

So I can apply for an ein as a sole proprietorship? I think I'll start with that and move along as needed.

I had the same ideas about the tcia affiliation. Probably not a bad thing, but not an investment that is going to show a real return right now that I can't accomplish on my own without them.

Any recommendations for gen. lia. insurance companies? Any do's/don'ts about shopping for it? Do I need to carry a $1m policy for myself and what should I consider for my "contractors"? it's there a rider i need to carry to protect myself from their possible mistakes?

Thanks guys..i really do aporeciate it.