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Tammy Said:

Small (family) Business taxes and payroll help!?

We Answered:

You have admitted that you are clueless here and half of smart is knowing what you are dumb at. Check out a local bookkeeping service and retain their services for what you can't do yourself and spend your time doing what you are good at. The price you pay will buy peace of mind and save your sanity.

Victor Said:

Liability Insurance Cost for Babysitting, House-sitting, etc.?

We Answered:

You're going to have a hard time blanketing those three risks together.

If you were trying, EXCLUDING molestation and abuse, you're probably looking at $2000 a year.

If you're transporting others for a fee - like the kids, to school - you'd need a commercial auto policy, which would at least triple what you pay. It's excluded on EVERY personal auto policy.

Billy Said:

I own a small paint company. Do I need workman's comp in Colorado?

We Answered:

You need workers comp. Your husband needs to sign an exemption form if he doesn't want to cover himself, and file it with the state of Colorado.

Your "basically a subcontractor" probably is NOT a subcontractor. Just because you don't withhold taxes from what you pay him, does NOT make him a sub. If you tell him when to show up, and what to do, he's an employee. If you provide the majority of his "employment", he's an employee. If he is "on call" when you need him, he's an employee.

If he's allowed to send someone else, and you do not provide materials or supplies, if you give him a time frame (like two weeks) and any time his person shows up is fine, if you pay him by the job, not the hour, THEN he's a subcontractor.

AND, even if you do decide he's a subcontractor, if he doesn't carry his own general liability and workers compensation, he's an employee as far as the insurance companies are concerned - and any uninsured sub, for workers comp, YOU, the general contractor, are on the hook for all the benefits.

Here are a couple of links you should probably read, about subcontractors vs. employees. They're not for COLORADO, but the information still applies.

http://labor.vermont.gov/Default.aspx?ta…


http://www.peakconsultinginc.com/Article…

**Just to clarify on someone else's answer - if you hire a "subcontractor" who does NOT carry workers comp insurance, you need to carry it for them.**

Ethel Said:

Which is the best business entity for my home based business?

We Answered:

The choice between the Sole Proprietor and the LLC comes down to your comfort for liability.

Starting an LLC can be done for around $500 (the actual cost will depend on your state and who files the papers for you), and protects your personal assets in the event of a lawsuit that does not go your way.

So I guess the question is what are your personal assets worth, and how much is $500 to you?

Having been on the startup side of a few businesses, I know $500 goes a long way in the early days. If you do not have a lot of personal assets, and plan to deal primarily with people you know at first, you're probably OK starting out as an SP, then moving on to LLC as the business grows.

On the other hand, forming and LLC is not that complicated; search "forming an LLC" and research the websites that will do it for you.

Good luck!
www.emeriox.com

Dave Said:

Considering setting up garden maintenance/grass cutting business ned help?

We Answered:

That's the way to go young one start from now and you will go with it well the first thing you need is to get a name for yourself then check on www.sunbiz.org to see if anyone have it then you need a county license that's where your going to start your biz then a state license you don't really need to have any insurance as yet on till you get on your feet or the customer request it and they rarely do, other then that have some good equipment and prepare to work hard.

Dianne Said:

In Gwinnett, cnty. GA. what are the laws re: insurance for janitorial services?

We Answered:

Workers comp: if you are not a corporation, the owner does not need wc coverage, but you do need it for the employees. The rate is about 19% of payroll. If you are a corporation, the owner needs it as well. GL is based either on payroll, or receipts, depending on the company you use. Most of 'em base it on payroll.

Most commercial clients won't hire you unless you have general liability and workers comp for your employees. Most residential clients don't care. If you're not a corporation, you're nuts if you have employees working for you - if one of them is killed in a car accident going from job a to job b, YOU PERSONALLY are responsible for the damages - you'll lose your house, your bank accounts, your car, and have your wages attached forever.

Josephine Said:

Small Business insurance...?

We Answered:

Last one I did, with about $25,000 in inventory, was $4,000 a year. Don't forget the workers comp coverage.