Working for others.

[garth466]

This is probably an open ended question, but here it goes. In order to pay for this new tractor I am buying, I'd like to do some side jobs. I want to keep it light and just do what I can, when I can. I don't want a business out of it, but I want to be paid when I work. Am I going to need a license or any special insurance? I'm thinking some field mowing, driveway grading and helping Johnny Homeowner shuttle dirt and stuff around the yard.

I have a few friends that own landscaping companies that sometimes need a helping tractor when they are too busy. Am I safe working under them? I'm sure I'll check with my agent about that, but of course it is Labor Day today and was just wondering what any of you do with stuff like this.

I don't know if going through all the book keeping, licensing and insurance cost really pencils if I'm not going to make a full blown side career out of the deal. Of course I haven't checked on what tax benefit there might be to owning a business that only loses money if there is any.

 

[D7E]

This is probably an open ended question, but here it goes. In order to pay for this new tractor I am buying, I'd like to do some side jobs. I want to keep it light and just do what I can, when I can. I don't want a business out of it, but I want to be paid when I work. Am I going to need a license or any special insurance? I'm thinking some field mowing, driveway grading and helping Johnny Homeowner shuttle dirt and stuff around the yard.

I have a few friends that own landscaping companies that sometimes need a helping tractor when they are too busy. Am I safe working under them? I'm sure I'll check with my agent about that, but of course it is Labor Day today and was just wondering what any of you do with stuff like this.

I don't know if going through all the book keeping, licensing and insurance cost really pencils if I'm not going to make a full blown side career out of the deal. Of course I haven't checked on what tax benefit there might be to owning a business that only loses money if there is any.

As a farmer i often put a dractor or dozer on with landscape companies and loggers and run under their insurance , But we have Chainsaw/logging certificates and construction machinery certificates to be safe , I used to do a small amount of domestic tree care but the insurance was terrible so i find more money working with big companies .

 

[Farmwithjunk]

To be LEGAL, at least where I operate my business, you need a tax #, a business license, liability insurance, proper license and registration (as a commercial vehicle) on your truck/trailer. In other words, you should have all the requirements of a full-time business, even for part time work.

There goes to overhead.....

OR... Do everything off the books and under the table. Hope you NEVER hit a buried gas line or throw a rock through someones car window or get audited . I'd hate to see you and your tractor on Judge Judy.

 

[Pete Milley]

Garth:
Here in Nevada, I applied at the State for a Business License for part time work. I was denied because I didn't believe I would make the minimum $26,000 annually. If I had qualified, I would then need to apply for a license in each city, town and county I would be working in. Gets expensive. I was also denied insurance because I didn't have a license. (Catch 22) There is alot more to making a few extra bucks than it may be worth.

 

[MacLawn]

Garth:
Here in Nevada, I applied at the State for a Business License for part time work. I was denied because I didn't believe I would make the minimum $26,000 annually. If I had qualified, I would then need to apply for a license in each city, town and county I would be working in. Gets expensive. I was also denied insurance because I didn't have a license. (Catch 22) There is alot more to making a few extra bucks than it may be worth.

Man, and to think he asked this question on Labor Day! Didn't know it could be so hard to try to do a little labor and make a few bucks for the effort...

 

[garth466]

All noted. The good news is the place I am buying is going to have enough trees coming off of it to pay for no less than 2/3 of the new tractor. I guess I'll be too busy to mess with other people anyway for a while.

 

[LoneCowboy]

You can be a sole proprieter and do that pretty simply.
You do need liability insurance, which is sometimes decent and sometimes outrageous. But you should be able to find a limited policy for around $1000. Yeah, it's overhead, but it's better than losing your house.
Getting a tax number (EID) is a phone call, not a big deal.
You do need to make money in 2 out of 5 years, you can't just continually lose money (despite my best efforts )

If i'm just helping my neighbors, then I'm not charging them and it's their liability. If i'm getting paid, it's mine and I'm a 1099 contractor (effectively)

I did ok at this for the first couple years and only did 10,000 to 25000 a year and made a little money (officially), but I built up an incredible collection of equipment. And that was with insurance and all.

Couple other points.
To succeed in business today, you just have to decide which laws, ordinances, rules, etc you are just going to ignore and which you are going to pay attention to. you choose.

Having a deduction disallowed is just a judgement call. Not reporting income is a felony.

 

[Roady]

Just a small note about liability insurance. I checked into it with my agent (Erie Insurance) and it only cost $400 a year. That's for doing jobs for other people. I thought that was reasonable. As it is now, I only pay $80 a year for personal use. From what I understand, they charge a couple dollars per thousand of coverage.

 

[garth466]

All good points Lone Coyboy. I'll do a little checking on all this before I offer my services, especially since I don't really have a service to sell as of yet. I'll keep it behind my own fence lines until I know what I'm doing then graduate to friends that have tasks that I am certain I could do little damage.

I've been to Longmont and recall I liked the town. I think your just a little north of the Peoples Republic of Boulder. I've got a friend in Platteville and spent a lot of time in Golden a few years back. I even knew how to skip the whole Coors tour and skip directly to the glorious end of the tour. Nice web site too.

 

[LoneCowboy]

THE SHORT TOUR

I used to work for a parks department (real small, probably swallowed up by now) right in that area one summer in college
for lunch, we would go take the short tour.