Advice
- Thread starter GG
- Start date
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jeff43222
Senior Member
- Location
- Minneapolis, Minnesota
Re: Advice
Perhaps, but that's a road I'm not ready or willing to go down just yet. Maybe someday.
tx2step
Senior Member
- Location
- North Texas, DFW area
Re: Advice
Unless you are filming a western, take the word "Partner" out of your vocabulary!
Don't make me smack you!
In the event you want to join forces with another individual, the safest way is to make them your employee. That way you can fire them if it isn't working out. Pay them bonuses if they are making you big money.
If that isn't good enough for you or for them or if you plan on joining up with another Contractor, then make CERTAIN that you get competent legal and accounting advice and form the proper business entity to do the work under -- like a Corporation or an equivalent entity in your state. A competent CPA can tell you if a "C-Corp." or an "S-Corp." is right for you, or if there is another form of entity that has more tax advantages. Retain control by keeping at least 51% of the stock. Do NOT go 50-50 or no one is really steering the ship.
If this is the route you decide to go, do NOT continue to operate as a Sole Proprietor -- form a Corporation or its equivalent. Your competent attorney and CPA will explain why this is VITAL!
This need not be expensive. In Texas, you can form a corporation for about $150 or less. But there is some extra work involved and there are different tax implications - so find out the pros and cons.
But the protections that it provides to you are absolutely worth it!
Don't think that you are too small to do this -- you're not. I believe that EVERY small Electrical Contractor should, as a minimum, be operating as a "S-Corporation".
Don't think that you can't afford to get competent legal, accounting and insurance advice -- YOU CAN'T AFFORD NOT TO!
[ June 16, 2005, 02:45 AM: Message edited by: tx2step ]
Unless you are filming a western, take the word "Partner" out of your vocabulary!
Don't make me smack you!
In the event you want to join forces with another individual, the safest way is to make them your employee. That way you can fire them if it isn't working out. Pay them bonuses if they are making you big money.
If that isn't good enough for you or for them or if you plan on joining up with another Contractor, then make CERTAIN that you get competent legal and accounting advice and form the proper business entity to do the work under -- like a Corporation or an equivalent entity in your state. A competent CPA can tell you if a "C-Corp." or an "S-Corp." is right for you, or if there is another form of entity that has more tax advantages. Retain control by keeping at least 51% of the stock. Do NOT go 50-50 or no one is really steering the ship.
If this is the route you decide to go, do NOT continue to operate as a Sole Proprietor -- form a Corporation or its equivalent. Your competent attorney and CPA will explain why this is VITAL!
This need not be expensive. In Texas, you can form a corporation for about $150 or less. But there is some extra work involved and there are different tax implications - so find out the pros and cons.
But the protections that it provides to you are absolutely worth it!
Don't think that you are too small to do this -- you're not. I believe that EVERY small Electrical Contractor should, as a minimum, be operating as a "S-Corporation".
Don't think that you can't afford to get competent legal, accounting and insurance advice -- YOU CAN'T AFFORD NOT TO!
[ June 16, 2005, 02:45 AM: Message edited by: tx2step ]
hardworkingstiff
Senior Member
- Location
- Wilmington, NC
Re: Advice
Good advice tx!
Good advice tx!
luckyshadow
Senior Member
- Location
- Maryland
Re: Advice
When I first started in this wonderful adventure of being an electrician, I worked for a company that was owned by 3 partners. They were a husband and wife and brother in law partnership all equal 33 1/3 owners. Company was growing fast. I left them in '86 and they had 35 trucks on the road with 2 men in each. In 89 they had 50 trucks with 2 men in each, Then the bottom fell out. The husband and wife grew tired of running a big outfit and wanted a small 10 man company. They packed up took the money, charged materials, took 10 men and about 12 contractors .
Left the brother in law with the bills and his best contractors gone and no money. He now works for the same company I am with. Partner with some body " ain't no way in hell "
When I first started in this wonderful adventure of being an electrician, I worked for a company that was owned by 3 partners. They were a husband and wife and brother in law partnership all equal 33 1/3 owners. Company was growing fast. I left them in '86 and they had 35 trucks on the road with 2 men in each. In 89 they had 50 trucks with 2 men in each, Then the bottom fell out. The husband and wife grew tired of running a big outfit and wanted a small 10 man company. They packed up took the money, charged materials, took 10 men and about 12 contractors .
Left the brother in law with the bills and his best contractors gone and no money. He now works for the same company I am with. Partner with some body " ain't no way in hell "
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