Pressure washing is a great way to keep your property looking fresh. It can also help increase the value of your home or business.
However, before you start your own power-washing business, there are a few things that you should know. This includes obtaining the necessary licenses and permits, insurance, and getting ready to launch your business. See These Helpful Hints!
Sole Proprietorship
A sole proprietorship is the simplest and least expensive form of business to operate. It requires no formal business requirements or legal costs, making it the most popular choice among small businesses.
A single individual is the owner of a sole proprietorship, which means that he/she owns all assets and properties of the enterprise. Moreover, the sole proprietor is responsible for all liabilities of the business.
If the owner fails to meet his business obligations, creditors can file lawsuits against him and attach his personal bank accounts or other assets. This is a serious risk for sole proprietors, especially those with personal assets.
Because the owner is liable for all debts of the business, it is important to keep business records separate from his or her activities. Keeping separate personal and business finances is essential when tax time rolls around.
C Corporation
Choosing the right business structure is crucial to the success of your pressure-washing business. Fortunately, there are several options to consider.
One of these is a C corporation, which offers limited liability protection to its owners, directors, and officers. This means if the business is sued, the lawyers cannot go after the owners’ assets to pay the debts or settle liabilities.
A C corporation also avoids double taxation on profits. Unlike other structures, C corporations report and pay federal corporate income taxes first, before shareholders are taxed on any dividends they receive from the company.
To set up a C corporation, the company must choose an original name and file Articles of Incorporation with the appropriate state government agency. The articles of incorporation outline the purpose, name, and address of the business, as well as who is involved in it. A governing board of directors is appointed to oversee the company’s operations and management. A secretary is also appointed to help with business matters.
S Corporation
When running a pressure washing business, you need to establish the right legal structure. This will protect you from personal liability and make it easier to access funding for your business.
The best type of business structure for you will depend on your goals and what kind of work you do. For example, if you want to expand quickly, an LLC or S Corporation will be a better option than a sole proprietorship.
S corporations are domestic entities that can have no more than 100 shareholders, and all shareholders must be U.S. citizens and residents. Other entities are allowed to own shares, including tax-exempt nonprofits and trusts with family members as beneficiaries.
An S corporation is a type of business entity that avoids the double taxation that occurs when profits are taxed at both the corporate and individual levels. This helps businesses avoid hefty tax bills and allows shareholders to benefit from their profits, reducing their overall taxes.
Limited Liability Company
A Limited Liability Company (LLC) is a business structure in which the owners of the LLC are shielded from personal liability for the debts or losses incurred by the LLC. This protection is referred to as the corporate veil.
A pressure washing business uses chemicals and water pressure to remove dirt, stains and mildew from a variety of surfaces. This includes parking areas, patios, buildings, sidewalks, roofs, automobiles, houses, and other equipment.
Starting a pressure washing business requires you to buy a pressure washer and chemicals. You can also rent or purchase a truck or van to haul your equipment.
In addition to these items, you need a federal tax ID number and a state employer number if you hire employees. Then, you need to register your business name. Browse next article.
