Making money with your CUT

[CurlyDave]

From my perspective, you need insurance.

It only takes one accident to put you and your family in a financial hole you will never recover from.

 

[rcowan]

We have to identify as "Not a Licensed Contractor". It's a blue sticker.
The liability insurance may not be necessary but sure makes sense in this litigation happy world we live.

 

[Farmwithjunk]

Way too many agencies cross reference information to take the risk of NOT complying with all requirements. I deal with local, state and federal taxation, license in a couple smaller "3rd class cities", insurance, both liability and workers comp, and I pay close attention to one that sunk a buddy of mine. He was in the mowing business also, albiet "off the record". He posted a few signs around town. Local sign ordinance requires a permit. Code enforcement officer took down the phone# and name off the signs and shared what he knew with local "sinking fund" tax office. They share info with state and feds. A $10 sign resulted in IRS knocking on the door.

Do you feel lucky?

It may or may NOT be a good thing that "BIG BROTHER IS WATCHING", but rest assured, he is, and will continue to watch ever more closely.

In this area, commercial mowing is getting cut-throat. One local (legal) contractor is turning in any "illegals" he runs on to (tax, license, insurance [workers comp]) . They can operate at MUCH lower overhead, therefore pricing work where "legals" can't legitimately compete. Two ways to level the playing field. Operate illegally also, or run the illegals out of business.

 

[Charlie175]

I already have business insurance (Different type of business), I just need to check to see what it covers.

Thanks for all the advice.

 

[AlanB]

I already have business insurance (Different type of business), I just need to check to see what it covers.

Thanks for all the advice.

From your tag, you are familiar with risk.

It is a risk to operate on the edges of legality, although sometimes it is the only way to stay profitable.

You just need to do a risk assesment, and see what works out for you.

Realize that what all of us on the board say, May, or may not apply in your municipality.

My personal experience, arguing with the city government has just been a dead loss. I try and comply with their regs, and slide through without making too many waves.

And yes, my next door neighbor runs under the table, and it eats me up sometimes when I see it.

At the end of the day, it is your RA, and perception of the risk that counts. And to me, you have started that by asking here.

 

[LoneCowboy]

this again?

liability insurance, workman's comp (state specific, may not be required), commercial auto coverage (for your truck and trailer, commercial policies are not cheap and not like homeowners), licenses, permits, fees and fees and fees. In colorado (although no place else), you are required to get SMM plates for your self-propelledmachinery used commercially (i.e. tractor) (big bucks, total ripoff). You are now a commercial vehicle, you need to follow all DOT regulations, in many states you need a DOT number (and all that that implies)., inspections, etc.

Oh, and somewhere in here, you're supposed to make money for yourself.

I, like FWJ's friend, have also started calling in illegally operating contractors. Either play by the rules, or get out. It's simply not fair or reasonable to those of us burdened with paying all these taxes/fees/permits, trying to play by the rules and make a living at it while Mr illegal contractor undercuts all the prices because he/she has no costs.

If you don't know what to charge, then you don't know what your costs are.

 

[john_bud]

this again?

liability insurance, workman's comp (state specific, may not be required), commercial auto coverage (for your truck and trailer, commercial policies are not cheap and not like homeowners), licenses, permits, fees and fees and fees. In colorado (although no place else), you are required to get SMM plates for your self-propelledmachinery used commercially (i.e. tractor) (big bucks, total ripoff). You are now a commercial vehicle, you need to follow all DOT regulations, in many states you need a DOT number (and all that that implies)., inspections, etc.

Oh, and somewhere in here, you're supposed to make money for yourself.

I, like FWJ's friend, have also started calling in illegally operating contractors. Either play by the rules, or get out. It's simply not fair or reasonable to those of us burdened with paying all these taxes/fees/permits, trying to play by the rules and make a living at it while Mr illegal contractor undercuts all the prices because he/she has no costs.

If you don't know what to charge, then you don't know what your costs are.

I actually hope every contractor and operator that reads this forum thinks about what Lone and Farmswith are doing --- and copies it! Get your paper work in order, follow the regs and turn in every single person that is illegal (especially those that use illegal labor!!)

You'd turn in someone that steals money at gun point, right? Why now turn in someone that steals business from an honest contractor?

 

[rcowan]

Illegal or not-a-licensed contractor? There is a difference.
It depends on where you live. This board is not state and community specific.
Do your research.
Don't judge.
IF it's illegal and you know it report it.

 

[pitt_md]

I don't know about the rest of you but I have had it in regards to the "rules and regulations". It would seem to me that the "rules and regulations" are set up to allow others to force you to pay them so you can work. Kind of like the mob, if you pay us money we will make sure no one causes you trouble...

I just built a new house and tore down my old one. At my closing I was reading what all the "fees" were about and they had a "transport" fee of $175.00. I asked what that was for and they said that was a "standard charge" applied to all the loan closings. OK but what is it for? Where are you "transporting" my paperwork that costs $175.00 What followed was a awakward period of silence. No one could justify this charge. Then you have the $600 dispersal fee (const. loan). Thats right folks you pay for the loan, then your forced to pay someone to write the checks for you. They say its required because "they" have to make sure all the lein waviers are signed. Oh I forgot to mention that you are the one required to collect and file all lein waviers. **** of a system they have going there.

sorry for the vent...

 

[Farmwithjunk]

Illegal or not-a-licensed contractor? There is a difference.
It depends on where you live. This board is not state and community specific.
Do your research.
Don't judge.
IF it's illegal and you know it report it.

Operating a business without filing federal income taxes on income generated is illegal in ALL states.

Operating a business without carrying workers comp insurance is illegal in MOST states.