Questions for those who have set up comp consult firm.

[GoodRevrnd]

I just had a few q's for those who have set up their own single employee computer consulting firms. I plan to service mostly home people and small businesses that don't require cable drops. As far as location goes I'll be working from my apartment or will rent part of a building my roommate's boyfriend is leasing for a recording studio.

How hard is it to go about getting business license? Cost?
How hard is it to then get a resellers license? Cost?
What are typical business insurance costs for this type of operation?
What are the realistic personal liabilities of running a proprietorship?
If I operate from home how much stuff can I do tax write-offs on?
Is it possible and how would I go about outsourcing warranty service? Cost?

Answers, personal experiences, horror stories, success stories and the like are much appreciated! I ask the last question because it is particularly important to my situation since I may move and/or go back to school after some time and close/relocate/scale back the business and I don't wnat to leave customers out to dry. I know it would probably be easier just to post a few fliers saying "I'll fix your computer for cheap $$" around the local campus, but I really enjoy building them and the reseller benefits would make it much more profitable. Plus running my own business is really something I'd like to do. Thanks in advance for all replies!

 

[GoodRevrnd]

Bump?

 

[PsychoAndy]

well your first four vary state to state. AFAIK if you go sole proprietorship and for whatever reason, you get sued, all your personal assets are tangible assets that can be seized.

you can write off damn near anything.

 

[HappyPuppy]

Join 246,846 other people who are trying to do the same thing.

Good luck.

 

[PsychoAndy]

oh, and BTW if you think wholesale prices are cheap, there not. the last time i called my distributor on some parts, including freight it was the same price i could buy it for at OD or staples

 

[Evadman]

Incorporate yourself or form an LLC. Do it now!! ( or as soon as you start up ) then your personal property remains yours, and you can use the company as a tax haven of sorts ( no I did not just say that ) with stocks and such.

Something I learned: When you incorporate, do not give yourself a dividend. You will be taxed to hell and back.

 

[GoodRevrnd]

I'm in SoCal if that helps any... Yes I realize everyone and their brother is doing this, but it's a side thing (I have a real job). I even have access to a client base through my real job . Yes I realize wholesale prices aren't as cheap as you think I think they are, but they should be cheaper than what I'm getting now. It'll at least be cheaper than advertised mwave place and there's some other major wholesaler in Anaheim a friend goes through that he says is pretty good, along w/ everything in Industry. I think maybe I have too many assets to risk to do proprietorship. What exactly do you have to do to incorporate, or what's an LLC?