I am doing the very same thing that you are getting ready to do. The fellow
that said get a good CPA was absolutely correct.
The one thing that no one mentioned , at least that I saw was the
big insurance problem, or should I say the wrong insurance. Home insurance
will not cover
your tools, or building, If you use your vehicle to do business, most
likely that vehicle can be denied when in an accident. The insurance
company will not pay if
they suspect that you are running a business out or your garage., in the
case that you have a fire. Also the real big one is the liabililty
insurance, that covers you if
something that you build causes an accident, years down the road. My
insurance policy does not allow me to build a baby crib. This may sound
crazy, but for
those of you that have not talked to an insurance agent about this kind of
coverage, are clueless.
My insurance,liability, shop coverage for $15,000.00 of tools and
that is low, and the commerical insurance for my 2000 chevy, comes to
$300.00 per mo.
They base your insurance rate from past coverage, since I had no
past coveraged, mine will start high for the first 5 years, then after I
have a sort of track
record , it will either go up or down accordingly.
It is base on dollar amount earned.
been there done that,
also get incorporated, to protect your personel property, Also get some
To date I have spent $125.00 . The insurance is the big scare.