# Going on my own to start a company



## Beckett (Jun 10, 2018)

I've finally acquired the last of the tools I've been wanting/need to acquire to be sufficient going on my own along with the knowledge of how to do the work correctly and efficiently. 

Were I lack is how to go about being official and what all licenses and insurances and so forth needed. I am located in Ohio, and will be small 2/3 person crew starting out.

Thanks for any info pointing me in the right direction.


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## griz (Nov 26, 2009)

start here:

https://www.com.ohio.gov/dico/ocilb/licensequalificationprocess.aspx

you will also need 

business license(s)
work comp
gen liability
maybe commercial auto ins
plus other stuff....

oh yea, don't forget a substantial pile of cash...:thumbsup:


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## Beckett (Jun 10, 2018)

griz said:


> start here:
> 
> https://www.com.ohio.gov/dico/ocilb/licensequalificationprocess.aspx
> 
> ...


Yeah there's definitely a lot that goes into it. 

Now would I be able to be just a contractor and sub out work to my other 2 guys and carry basic contractor insurance? Is that all on the up an up? 

I had one guy I worked for in the past that did it like that.


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## griz (Nov 26, 2009)

Beckett said:


> Yeah there's definitely a lot that goes into it.
> 
> Now would I be able to be just a contractor and sub out work to my other 2 guys and carry basic contractor insurance? Is that all on the up an up?
> 
> I had one guy I worked for in the past that did it like that.


you need to check your state laws

irs has rules about subs also

you may still need work comp

out here a sub has to have the appropriate contractors license


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## fast fred (Sep 26, 2008)

here is how I did it

1099 everyone, don't have any employees overhead is a killer
WC costs too much money, then you end up paying into unemployment, SS, taxes, then you'll need to hire someone to figure all that out, because the gov't doesn't make it easy to do

bottom dollar liablity insurance is all you need, minimum coverage

keep your labor rates super low, pay low, pay irregularly 

sub sub sub sub everything, buy a nice 65k truck, it's a write off, buy a boat next, you can even write off a travel trailer since it will be your onsite office, roll around like a true baller

Bid low and work cheap, the only way to get your foot in the door, if your prices are low enough you'll have so much work, you'll wonder why you didn't go out on your own sooner


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## Beckett (Jun 10, 2018)

fast fred said:


> here is how I did it
> 
> 1099 everyone, don't have any employees overhead is a killer
> WC costs too much money, then you end up paying into unemployment, SS, taxes, then you'll need to hire someone to figure all that out, because the gov't doesn't make it easy to do
> ...


Thanks for info basically what one of my previous bosses did. Do I need to have any contract with my employees (subs) or just track hours pay with check and 1099 at end of year? Also are you considered just a contractor or do you have and LLC and official company an all?


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## Tinstaafl (Jan 6, 2008)

Fred specializes in sarcastic hyperbole. If you have guys working for you full time, they are not subs and you can't legally just 1099 them and skip all the other hoops required when you have employees.

Running an actually legal and viable business is just a wee bit more complicated than that.


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## Beckett (Jun 10, 2018)

Tinstaafl said:


> Fred specializes in sarcastic hyperbole. If you have guys working for you full time, they are not subs and you can't legally just 1099 them and skip all the other hoops required when you have employees.
> 
> Running an actually legal and viable business is just a wee bit more complicated than that.


Understandable, but for the first year of a small 2/3 person crew would that be viable to test my feet in the water? I'm in a rural area, no need for permits or even a contractors license for most work.


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## Tinstaafl (Jan 6, 2008)

The gummint doesn't care if it's you're first year or your fortieth, it wants its slice. I get where you're coming from, but ultimately what you want to do is illegal, no matter where you live in this country.

Roll the dice, or do it the legal [but hard] way, your choice. My choice is to stay legal because I don't want to deal with the possible consequences of doing otherwise.

It's not really all that hard when starting out. Operate as a one-man band, beginning with smaller projects, calling in subs as needed. It's okay to use the same subs regularly, but they have to be demonstrably independent, not relying upon you for their sole source of work. Check out IRS.gov for who qualifies for 1099 status.


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## SL877 (Oct 17, 2016)

dont get scared away by the "do it by the book or else" line... I see nothing wrong with holding basic liability insurance and being a one man band for your first year or so to get your feet wet. order the latest IRC code book and study up and take your test and get licenced when your ready. running a crew and workers comp can also come in time.

one of the best peices of advice I heard when starting out was buy tools as needed. Its the same with insurance and licencing. Why drop a bunch of money and time into things you dont need yet. One step at a time


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