Hello, I’m currently in the process of starting a junk removal company and I’m trying to figure out a few things.
1. Should it be under an LLC?
I would like to not risk being sued personally due to owning a home and other assets.
Should the vehicle and trailer be in the company name or under my own?
I keep hearing in the podcast how he wrote off 55 cents per mile but don’t understand if you can’t do that if it’s in the companies name.
What expenses am I likely forgetting?
I’ve written out vehicle cost, trailer cost, maintenance, fuel, insurance, website, using an app like Jobber, and accountant.
Honestly any insight would be fantastic, this is the first business I’ll be opening and the overhead seems minimal compared to other businesses due to the majority of the money being for a truck and trailer.
@hatterharry As a sole proprietor LLC, your taxes from the business will all flow through your personal tax return. If it's a company car or your personal car, you get to deduct the mileage. I would think if you're trying to avoid personal liability, then you would look into putting the car under your LLC, but you should also talk with an insurance agent to see if there are any issues that arise from that.
@douglofgren The one I spoke to said business insurance would cost significantly more than insuring it through my personal insurance but I may just need to call my current company and see if they have a way to bundle the policies or what they would recommend. And thank you for letting me know that taxes would flow through my personal tax return.
@hatterharry I would keep it in your name and personal insurance for as long as possible. The moment you switch your insurance will 2.5x. From my experience
@hatterharry For 3, you may need a dump permit and waste hauling permit. Looking to do this as well and my local dump requires you to get a permit to dump there, and you must also have a waste hauler permit from the state
