Bonds, insurance, license

[RecurveTrail214]

Hey all

I got a question. Ive detailed as a hobby for awhile. But this spring im taking to the next level and doing a detailing side business. Im gonna start offering basics then move on from there. Ok to my question. What license, insurance and bonds do I need? Do i need them at first? How do you get them
Thanks

[GSKR]

Keep it under the radar as a hobbyist.Then a year from now see were you are at.Then invest into all that.make checks payable to you or cash,or talk to a acct.

[RecurveTrail214]

Keep it under the radar as a hobbyist.Then a year from now see were you are at.Then invest into all that.make checks payable to you or cash,or talk to a acct.

So basically just so detail for side money. But dont advertise as a business?

[Stevedotmil]

Yep. That's how I started. Going legit as a business takes some coordination and paying attention to the details. Check with your local county Small Business Administration office. Get some quotes for insurance. You will need at least 1Mil in liability and depending on how expensive the cars you detail, at least 75K in Garage keepers.

Searching the forum helps answer a ton of questions as well. Happy reading.

[GSKR]

So basically just so detail for side money. But dont advertise as a business?

you can advertise all you want.once you incorporate the irs now recognizes you.The first year you can show zero for profit.For a 1000 bucks cover yourself not worth it.

[StangFan25]

Hey all

I got a question. Ive detailed as a hobby for awhile. But this spring im taking to the next level and doing a detailing side business. Im gonna start offering basics then move on from there. Ok to my question. What license, insurance and bonds do I need? Do i need them at first? How do you get them
Thanks

If you're touching someone else's vehicle, insure yourself. One little mistake and you're screwed if you don't have it.

Research doing an LLC. It's super cheap to start up a business(legally).

You need insurance though.

[Detailing by M]

You only need a business lic or register with your city.
You should have ins. but it's not necessary and you don't need to be bonded.

[AGOatemywallet]

If you're touching someone else's vehicle, insure yourself. One little mistake and you're screwed if you don't have it.

Research doing an LLC. It's super cheap to start up a business(legally).

You need insurance though.

What would this insurance actually cover?

[Mike@ShineStruck]

From other threads ive read on this subject..I'm pretty sure it doesn't cover Strike through/burn through so seems like you're screwed either way? As that's the only real dmg I'd worry about when Detailing

[Calendyr]

Garage keeper insurance would cover you if you make a major mistake like starting a fire at a customer's house but as far as I know, no insurer will cover you for damage on a vehicle while performing detailing tasks like sanding or polishing. Since this is the only real danger I can see, I feel like it's a waste of money. Most on here will tell you that you need it but I think they don't understand the coverage. Either way talk to an insurance broker and see what protection they offer and at what price. If you are just starting out, I think you will find that it will be way too expensive for the profits you are gonna be making. Here in Montreal, the policy they offered me was about 200$ per month on a 2 year contract. So 1200$ per year. I would rather pay from pocket if I screw up than pay that. If you drive your customers cars for some reason, you wanna make sure you are covered for accidents though, but that is separate from a garage keeper insurance.

As far as licences, it really depends where you live. But I would not go without it. Here it's a provincial thing. Need to register the business with the government for the right to operate. That costs like 30$ per year. Then you need to register with the IRS to charge taxes. In the US it's probably different. Here, perceiving taxes allow me to deduct all the taxes I pay. So it would be stupid not to do it considering I pay a lot of taxes on products, equipment, gas, services and everything. Also allows me to make a ton of deductions for my vehicles and operating expenses. In my first years those deductions are paying for all my new equipment and products. That is very likely the same way in the US.