Computer-type Business Owners Please Help

[volfan]

Hey, guys. I am wanting to start my own computer upgrade, repair, consultation, and web-design business very soon. What I am needing to know is how I should set it up. Should I be a LLC, DBA, or other type of business. Should I apply for a Tax ID#? I'm just trying to figure out the best way, and get an idea of where to start. Any information from other people doing it would be great!

Now, don't get me wrong, I know these type business seem to be a dime a dozen these days, especially with the out of work IT people around. However, I've got a good full-time job, I'm just looking at this for extra income. There shouldn't be any overhead and anything I get will be money in my pocket. Also, I am trying to figure out a way to get my name out there with minimal cost. Should I just do little classified ads in our major newspaper? I will be gratefull of any answers or help.

Thanks!

 

[volfan]

Come on guys, I know there's some people out there running small computer shops or web-design businesses. Anyone?

 

[db]

On the paperwork side of things, Sam's often sells a notebook for the state you live in which has everything you need for most types of business you will start up, including tear-out postcards to fill out and send to the state for things like advising of your business name, getting ID #s, etc.

 

[Transition]

<< Hey, guys. I am wanting to start my own computer upgrade, repair, consultation, and web-design business very soon. What I am needing to know is how I should set it up. Should I be a LLC, DBA, or other type of business. Should I apply for a Tax ID#? I'm just trying to figure out the best way, and get an idea of where to start. Any information from other people doing it would be great!

Now, don't get me wrong, I know these type business seem to be a dime a dozen these days, especially with the out of work IT people around. However, I've got a good full-time job, I'm just looking at this for extra income. There shouldn't be any overhead and anything I get will be money in my pocket. Also, I am trying to figure out a way to get my name out there with minimal cost. Should I just do little classified ads in our major newspaper? I will be gratefull of any answers or help.

Thanks! >>



It all depends on the amount of liability and risk in your line of work. It's very cheap and easy to go with a sole-proprietorship if you feel you're going to be a low-risk low-liability type business. For myself, i have an established LLC due to higher risk. As a sole proprietor, you'll personally be responsible for any debt, lawsuits, or damage you cause. As an LLC, my personal belongings and such are protected as the LLC operates individually much like a corporation. Taxes are a little more complicated for the LLC - but not that bad. Plus i believe it was a hundred sixty bucks or so to form the LLC. I believe you'll need to first apply for the federal tax ID then you can go ahead and receive your state tax ID (you have to have the federal before you get the state).

BTW - You can see my business online here...

 

[volfan]

Thank you both! Very helpful info. I think I will go to Sam's to see if they have that notebook. Yeah, I was thinking about the legal risk. I don't think I would incur much debt, so I wouldn't be concerned too much about my assets, except for that lawsuit factor. I wonder what the likelihood would be of getting sued for lost data, claims of me "breaking" their computer or other such claims. Any other personal experience with this type of business that can lend some other advice?

BTW, Transition, you're site looks great man! What company did you go with for your Shopping Cart and Credit Card processing? Loos like Miva merchant? How expensive is it? Is it difficult to setup? Sorry for so many questions, but I've also wanted to setup a storefront too. Thanks again!

 

[db]

If you don't want to worry about if someone will get your belonginings due to a judgement, then go with a more limited liability business setup, like Transition said. It's cheap "insurance" (peace of mind) considering the one-time fee.
Just remember, even if you're right, if someone's screaming that you ruined whatever even tho you didn't , you still have to deal with it--you can't say: "Talk to my boss" and just blow it off.