new business plan. Need advice.

[benlee]

Hi all. Thought i get some insight from you. I had the idea of starting a small (very small) part-time tech service company. Basically I want to make a little extra money while being my own boss. but not too crazy because im working full time and starting law school part time in the fall. I may have too much on my plate but hypothetically..... I would be available for home visits or can pick up peoples equipment and service at my house. would be fairly cheap so that would be the draw. would service macs (with a discount)and pcs and also help with other technological needs people may have. (Some people can't even program their remote controls). Do you think its worth it? what initial steps should i take? anything to look out for? Any thoughts.

Thanks,
Benlee

 

[pianodude123]

While it is a good idea, and I'm sure your qualified... the hardest part is finding customers.

It pangs my heart everytime i see a geeksquad mobile outside someone's home, when i could "Integrate a Wireless solution for you" meaning set up a linksys router in your house, for much less than the $320 they charge!

 

[jeremy.king]

You have several options including (but not limited to):

1) Just do it under your own name, and pay self employment tax on the extra income
2) Do it the right way - http://www.sba.gov/smallbusinessplanner/index.html

I don't think its hard to find customers. Keep in mind, nothing beats word of mouth and consider lower rates as you get started to build up a base of "regulars"

 

[RojoLeo]

Ultimately, the difference between different entities is taxation and litigation. Certain types are taxed differently and some protect your personal assets.

By far the easiest way to setup your own business is by filing a DBA (Doing Business As) with your county. It usually costs about $10 and allows you to use your company name, accept checks, etc. legally. However, if you're sued, it is you as an individual being sued and provides zero protection.

LLC is generally considered the next step up and provides some minimal tax benefits. A little (and I do mean little) known fact is that you can actually have an LLC taxed as an S-Corp to avoid double taxation. You may have to ask around a bit, but it can be done and is very advantageous.

For what it's worth, I paid my tax person about $100 to setup everything for me. I did not pay lawyer fees, and for a company of your size, I wouldn't in your shoes either.


To directly answer your question, yes I think it's worth it if you provide good service. There's always enough room for good service in any industry.

 

[djbrickhouse]

Ultimately, the difference between different entities is taxation and litigation. Certain types are taxed differently and some protect your personal assets.

By far the easiest way to setup your own business is by filing a DBA (Doing Business As) with your county. It usually costs about $10 and allows you to use your company name, accept checks, etc. legally. However, if you're sued, it is you as an individual being sued and provides zero protection.

LLC is generally considered the next step up and provides some minimal tax benefits. A little (and I do mean little) known fact is that you can actually have an LLC taxed as an S-Corp to avoid double taxation. You may have to ask around a bit, but it can be done and is very advantageous.

You will find all of this out in law school, which as a lawyer, will take up a lot of your time.....