Hello,
I am new to this group and I'm planning on starting a WW business
soon.(2004)
Can anyone else who has gone through this recently give me a few tips.
I'm aware of the sales tax licence, but, does this enable you to purchase
raw materials w/o paying sales tax? How does this work with local home
centers? Is this what the 'contractor desks' are for?
Also, I have purchased a good number of tools this past year (and last)
and
was told there is a way to 'bring them into the business' as a cost to the
business (and depreciate them). Has anyone done or heard about this?
Details?
I live in the state of Pennsylvania if that matters.
Any help or useful links would be much appreciated,
Rich
I'm assuming you're going to incorporate. The best way (IMHO) to get your
tools into the business as a liability to the business and an asset to you
personally is for you to lease the tools to the company.
This serves quite a few purposes - the tools can't be listed as an asset in
a lawsuit since they're leased to the corp, the'yre an immediate expense to
the company (cost of doing business) and will help offset the company's
income at the end of the year, and as part of your lease agreement you can
state that the company is responsible for the full replacement cost of the
tool should it break...etc...etc..
Sales tax license - at least here in Texas...allows me to buy at wholesale
prices without paying sales tax - that is, assuming I'm going to re-sell the
stuff. Otherwise, I must pay taxes on what I purchase.
BTW - I'm not a lawyer, this isn't legal advice, yadda yadda yadda..just
thought I'd give you my .005 cent.
"Rich" <[email protected]> wrote in message
news:usuDb.558565$Tr4.1522919@attbi_s03...
> Hello,
> I am new to this group and I'm planning on starting a WW business
> soon.(2004)
>
> Can anyone else who has gone through this recently give me a few tips.
>
> I'm aware of the sales tax licence, but, does this enable you to
purchase
> raw materials w/o paying sales tax? How does this work with local home
> centers? Is this what the 'contractor desks' are for?
>
> Also, I have purchased a good number of tools this past year (and last)
> and
> was told there is a way to 'bring them into the business' as a cost to
the
> business (and depreciate them). Has anyone done or heard about this?
> Details?
>
> I live in the state of Pennsylvania if that matters.
>
> Any help or useful links would be much appreciated,
>
> Rich
>
>
Hi Rich,
There has been a lot of discussion on this topic in this group. Suggest you go
here and type in "woodworking business". Cheers, JG
http://groups.google.com/groups?hl=en&lr=&safe=off&group=rec.woodworking
Rich wrote:
> Hello,
> I am new to this group and I'm planning on starting a WW business
> soon.(2004)
>
> Can anyone else who has gone through this recently give me a few tips.
>
> I'm aware of the sales tax licence, but, does this enable you to purchase
> raw materials w/o paying sales tax? How does this work with local home
> centers? Is this what the 'contractor desks' are for?
>
> Also, I have purchased a good number of tools this past year (and last)
> and
> was told there is a way to 'bring them into the business' as a cost to the
> business (and depreciate them). Has anyone done or heard about this?
> Details?
>
> I live in the state of Pennsylvania if that matters.
>
> Any help or useful links would be much appreciated,
>
> Rich
"MJ Wallace" <[email protected]> wrote in message
news:[email protected]...
> "Rich:
> <SNIP>
> Finally, I also suggest WorkShop News - a
> publication for and about woodworkers who
> work wood for money. Good articles about
> hiring, taxes, etc.
><SNIP
Did you mean WOODSHOP News?
"Rich:
I can't answer you questions directly, but I hazard
that if you contact someone you know in woodworking
they might be able to steer you right. Also, go
down to your local Chamber of Commerce they will
have a lot of literature about starting up a business
as it relates to licenses, taxes, etc. Also, see
if there is a local chapter of SCORE nearby -
this is a volunteer organization of retired
execs who help out small business folks for
next to nothing. There's got to be someone
nearby, perhaps in the largest city near you.
Finally, I also suggest WorkShop News - a
publication for and about woodworkers who
work wood for money. Good articles about
hiring, taxes, etc.
Good luck!
MJ Wallace
Here is a shorter URL: http://tinyurl.com/zidt
--
Rumpty
Radial Arm Saw Forum: http://forums.delphiforums.com/woodbutcher/start
- - - - - - - - - - - - - - - - - - - - -
"Rumpty" <[email protected]> wrote in message >
> See:
>
http://www.state.pa.us/papower/taxonomy/taxonomy.asp?DLN=29888&papowerPNavCt
> r=|29965|#29965
>Can anyone else who has gone through this recently give me a few tips
Yeah, don't be tempted to live off of your credit card when times are slow.
Also "Price Dictates Quality" so don't be afraid to price your work
properly.
See: http://pacrafts.com/
--
Rumpty
Radial Arm Saw Forum: http://forums.delphiforums.com/woodbutcher/start
>> I'm assuming you're going to incorporate
There is no need to incorporate a small business, especially here in
Pennsylvania. A sole proprietorship is all you need beside liability
insurance. Also, change your truck to commercial insurance, here in Pa your
rates will be lower, and the cost difference will pay for your liability
insurance.
--
Rumpty
Radial Arm Saw Forum: http://forums.delphiforums.com/woodbutcher/start
- - - - - - - - - - - - - - - - - - - - -
"Al" <[email protected]> wrote in message
news:%[email protected]...
> I'm assuming you're going to incorporate. The best way (IMHO) to get your
> tools into the business as a liability to the business and an asset to you
> personally is for you to lease the tools to the company.
>
> This serves quite a few purposes - the tools can't be listed as an asset
in
> a lawsuit since they're leased to the corp, the'yre an immediate expense
to
> the company (cost of doing business) and will help offset the company's
> income at the end of the year, and as part of your lease agreement you can
> state that the company is responsible for the full replacement cost of the
> tool should it break...etc...etc..
>
> Sales tax license - at least here in Texas...allows me to buy at wholesale
> prices without paying sales tax - that is, assuming I'm going to re-sell
the
> stuff. Otherwise, I must pay taxes on what I purchase.
>
> BTW - I'm not a lawyer, this isn't legal advice, yadda yadda yadda..just
> thought I'd give you my .005 cent.
>
> "Rich" <[email protected]> wrote in message
> news:usuDb.558565$Tr4.1522919@attbi_s03...
> > Hello,
> > I am new to this group and I'm planning on starting a WW business
> > soon.(2004)
> >
> > Can anyone else who has gone through this recently give me a few tips.
> >
> > I'm aware of the sales tax licence, but, does this enable you to
> purchase
> > raw materials w/o paying sales tax? How does this work with local
home
> > centers? Is this what the 'contractor desks' are for?
> >
> > Also, I have purchased a good number of tools this past year (and
last)
> > and
> > was told there is a way to 'bring them into the business' as a cost to
> the
> > business (and depreciate them). Has anyone done or heard about this?
> > Details?
> >
> > I live in the state of Pennsylvania if that matters.
> >
> > Any help or useful links would be much appreciated,
> >
> > Rich
> >
> >
>
>
Rich wrote:
> Hello,
> I am new to this group and I'm planning on starting a WW business
> soon.(2004)
>
> Can anyone else who has gone through this recently give me a few tips.
>
> I'm aware of the sales tax licence, but, does this enable you to purchase
> raw materials w/o paying sales tax? How does this work with local home
> centers? Is this what the 'contractor desks' are for?
>
> Also, I have purchased a good number of tools this past year (and last)
> and
> was told there is a way to 'bring them into the business' as a cost to the
> business (and depreciate them). Has anyone done or heard about this?
> Details?
>
> I live in the state of Pennsylvania if that matters.
>
> Any help or useful links would be much appreciated,
>
> Rich
>
>
There are three people that you need to know when you're starting a
business: a banker, a lawyer, and an accountant.
Between the three, most common questions can be answered.
Go to your local bank and ask them what they require to open a business
checking acct. I've used my regular household checking account for years,
it's called a dba "doing business as" account.
To get your resale certificate from Harrisburg, you'll need some sort of
legal business name. Go down to your county courthouse and stop by the
"Prothonatory Office" they have the forms etc.
See:
http://www.state.pa.us/papower/taxonomy/taxonomy.asp?DLN=29888&papowerPNavCt
r=|29965|#29965
What type of business are you starting?
--
Rumpty
Radial Arm Saw Forum: http://forums.delphiforums.com/woodbutcher/start
- - - - - - - - - - - - - - - - - - - - -
"Rich" <[email protected]> wrote in message
news:usuDb.558565$Tr4.1522919@attbi_s03...
> Hello,
> I am new to this group and I'm planning on starting a WW business
> soon.(2004)
>
> Can anyone else who has gone through this recently give me a few tips.
>
> I'm aware of the sales tax licence, but, does this enable you to
purchase
> raw materials w/o paying sales tax? How does this work with local home
> centers? Is this what the 'contractor desks' are for?
>
> Also, I have purchased a good number of tools this past year (and last)
> and
> was told there is a way to 'bring them into the business' as a cost to
the
> business (and depreciate them). Has anyone done or heard about this?
> Details?
>
> I live in the state of Pennsylvania if that matters.
>
> Any help or useful links would be much appreciated,
>
> Rich
>
>
On Tue, 16 Dec 2003 08:58:23 -0500, "Rumpty"
<[email protected]> wrote:
>Yes, as long as you use the material to make a finished product. You
>"can't" use your resale certificate to buy material and not pay the sales
>tax if you use the material in your own home or even your shop and it's not
>for resale.
As demonstrated years ago by Leona Helmsley. <G>
Barry
>I'm aware of the sales tax license, but, does this enable you to purchase
raw materials w/o paying sales tax? How does this work with local home
centers? Is this what the 'contractor desks' are for?
Yes, as long as you use the material to make a finished product. You
"can't" use your resale certificate to buy material and not pay the sales
tax if you use the material in your own home or even your shop and it's not
for resale.
I've seen contractors buy materials at the regular register in HD, show
their exemption/resale certificate and not pay the sales tax. Ask at the
BORG for their policies.
If you are starting say a furniture business, you shouldn't be buying your
material at the BORG.
--
Rumpty
Radial Arm Saw Forum: http://forums.delphiforums.com/woodbutcher/start
- - - - - - - - - - - - - - - - - - - - -