Insurance Insurance

[jmf7112001]

I have been reading these chats for sometime and have learned a lots by just listen. I guess it time for me to speake up. From what I'm reading I believe there is several out there that buys and sell tractors. Its a hobby with me. I'm retired and have income to live, but I enjoy making a buy and resaleing and seeing somebody made happy. My question is Where does this become a business in the insurance company world? Do I need business insurance? I'm sure if I ask my agent he say "Yes" Because it more money for him. I sure this is a fine line in the insurance field. If I sell one or two tractor a year is it a business? If I sell 15 a year is it a business? I can buy and sell from a garage sale and its not a business. I bought several lawn mowers and resold them, Is this a business? I bought and sold 3 houses in a year, but they were mine. I didn't need real estate license. If some of you guys who buy and sell would post the name of your insurance agent I would appreciate it. I got a quote from one company the other day of $6,000 per year. I sure they just didn't want to write a small business insurance. Help - Help

 

[normde2001]

Good question...If a person buys a small container of tractors, I believe that's 8, and assembles them and sells them out of his (rural) garage, does he need a business license, ins.,etc?
Norm

 

[kayssupply]

I have insurance. I sell an average of 20 tractors a year. I have liabilty insurance at the place I sell from in case someone falls or is ran over I am covered. I have an umbrella policy for $1,000,000 in case some fool turns one over. I have loss insurance in case of a fire etc. Bottom line about $1900 per year with Rockford Mutual.

 

[cordspa]

Anytime you are selling an "item" and you are soliciting customers and then you are replenishing your inventory to repeat the process..You are conducting a business in the eyes of your friendly gov. beaurocrats! The old myths about how many items you sell or how much profit you make or they are new or used are just that myths. You are either a retailer, a wholesaler, a reseller, or a customer.

 

[EFC]

Your state has very specific rules about what constitutes a business. You need to get in touch with them and be honest about what you are doing. If you sell a hammer to your neighbor be ready for him to fall on it and have his wife sue the crap out of you. Whether you are a business or not you need liability insurance. I would get a business license so you can start writing off some of your expenses related to your tractor dealings. Without one, those expenses are out of your pocket. Even if you don’t have a business license and you sell tractors not claiming the sale on your taxes is tax evasion and you know Caesar will get his money.

 

[ket]

so how does one go about buy a container of yanmar tractors

 

[normde2001]

<A target="_blank" HREF=http://www.sankoind.co.jp/index.html>http://www.sankoind.co.jp/index.html</A>
Ket, here is one way. I think there are several others.
Norm

 

[roger_scotty]

I'd listen to Cordspa. His is the common sense approach and is the same thing that I've found in my own businesses.
It sounds to me like you are about in the grey area of having a hobby that occassionally makes a little money. In that case you will be much money ahead to call it a business, get a resale license and start to take advantage of the whole system. You don't have to do any more work and can still do it as a money-making hobby. But the whole tax system was set up by businessmen....and they did bias it in their direction. It works nearly as well for small businesses as for large.

 

[JohnMiller3]

<font color=blue>...But the whole tax system was set up by businessmen....and they did bias it in their direction...</font color=blue>

Not exactly... the system is set up by politicians for tracking and revenue purposes...

 

[roger_scotty]

I could be wrong; I admit that I've never done the figures. But my impression is that most politicians were previously business owners rather than employees. Anyone got any numbers or opinions on this?

 

[lens12]

container of tractors

I can have a container load of tractors shipped to you. Contact me at sheaftractor@coiinc.com or 815-284-3226

 

[Anonymous Poster]

Roger...

On the Federal level... aren't most ...lawyers...? /w3tcompact/icons/smile.gif

and on the "rest" of the levels... Professional politicians...(whatever that's suppose to mean?)... kinda like no man's land...?

 

[lens12]

If a person buys a small container of tractors, I believe that's 8, and assembles them and sells them out of his (rural) garage, does he need a business license, ins.,etc?

I'd say most definitely he is operating a business. Legally if he buys & sells one at a time , he is a business. (The only way to not be a business is to buy for ones own use & after a period of time selling the item. If this is done often it starts to look like a business. ) Being a business requires a business license , the proper zoning, business insurance, business phone, paying higher rate for ads, & collecting sales tax. Of course it also means declaring all income on state & federal income tax forms, which I imagine doesn't get done by many hobby/weekend dealers. These extra expenses all have to be figured in when determining the selling price of a tractor.

 

[DVerbarg]

<font color=blue>I would get a business license so you can start writing off some of your expenses related to your tractor dealings. Without one, those expenses are out of your pocket. </font color=blue>

I was under the impression that you can conduct a business, without a license, so long as that business is not deemed illegal. A "license" is permission to do something illegal or forbidden. Unfortunately many types of businesses are deemed illegal nowadays. Some localities may require a license to do certain activities, serve alcohol, prepare food (health dept), etc. Most states also have some form of sales tax (Illinois calls it an occupation tax) that require registering with the state to get a sales tax id.

In the case of selling tractors, if you lived in Illinois, you would need to be registered with the state to collect sales taxes (farm equipment is not taxed, but farm use has to shown otherwise the equipment is taxed).

If you were "selling your time" that is not sales "taxable" and registration with the state would not be necessary, unless you had employees. When I was an independent contractor I would track my expenses and revenues and file the appropriate tax forms. I operated as a self-proprietor using my SSN. Filed taxes with both feds and state and was able to use expenses against revenue.

The closest NH dealer to me (own a Boomer) is now over 1.5 hrs away. Often toyed/dreamed about opening a dealership. Maybe when I "retire" in another 30 yrs...