Help with my business

[bugbombers]

Hi I have a few questions,

Last year I started my own under the table insect spray service And the business just exploded I now have over 700 customers on my monthly plan which is $75 every 3 months for monthly service and 350 customers on my quarterly plan $40 every three months And it has become more then i can handle I am working 10 hour days 7 days a week, Well I guess My question would be Should I hire some one who already has a License so I can Streamline the business to being a
legal entity Or should i Hire one or two people under the table For now And work on me getting the licenses I need? Or my third option would be to just close this business and start something legal. Has any one ever been in a position like this and would be willing to offer me some tips

[Angelina86]

hmmm interesting...I think you should hire some reliable people and make your business legit before anything else...

[GreaterVisibility]

You're probably so busy because you aren't charging enough. If $75 covers 3 months of monthly service, that comes down to each visit for $25 right? Figure in your costs of time spent driving, getting customers, dealing with customers, gas & vehicle repairs, equipment, chemical, etc. You can't be making much money in the end, and if you're actually subbing that out, wow!

Oh, and did I mention that you're stealing from the government and every one of us that pays taxes or benefits from them. As a guy that just spent the past 17 months paying off over $50k of tax debt because I reported honestly but had a few screwups financially, I have little sympathy for you because I did things legally and above board rather than stealing, and I got in a bind and pulled myself out of it with hard work and integrity. Did I also mention that you probably damaged your market with prices that were far too low and took work from other people that were working honestly and above board?

Now, if you want to make real money and become legit, you get to figure out how to do so. You also get to see how your clients react when you go in and start charging what you're worth if you have a real business. You can probably make more money if you do it legitimately. There are millionaires in the service business, and they aren't made under the table.

[bugbombers]

$75 is plenty for my service(it is only $5 dollars less then the other services) people like me because i dont make them sign contracts, I paid almost 20,000 last year in chemicals and gas and vehicular upkeep while pulling almost 200,000 I have already broken that amount in income this year with about that same expense, I started this to feed my family I could not find a job I had a back pack sprayer and a gallon of talstar pro So i made up some flyers passed them out and boom it was a success I never planned on this being so big I just planned on making some money to buy food and rent for my family But now that I am here I don't want to go back And am trying to to make this legal but instead of getting help i get some bitter old man who only pays his employees minimum wage

[GreaterVisibility]

Wow, with all of that money you'd think that you could afford some punctuation. :p

Yeah, when people make 200k without reporting it, consider me bitter. Honest, but bitter.

Seriously though, good for you for hustling. Lots of people won't even work. But you need to get legal. I've known people that it caught up with, and it is ugly.

[Wozcreative]

200K and you didn't even bother to come up with a proper business plan to be legit? As someone who takes care of their adult mentally and physically sick family members, providing them homes, food, and driving them to their appointments, hospitals, watching over them etc. I still make time to make my business legitimate. Because of the above, I do struggle to pay my taxes on time, but I am honest about it. By the way, you are not worried your clients are using you to right off their taxes? It can take the government up to 5 years to find out... and when they do.. and they have all those years of taxes to collect from you, oh boy!

[brendadob]

I would say consider yourself lucky so far but don't count on your luck lasting much longer. There is a reason why this area is regulated, think of the liability. I would say shut the business down and start something legal. Think of your kids--we are suppose to always be setting an example for our children. Do the right thing, the
peace of mind you gain will be well worth it--you have already proven your entrepreneurial skills it is easily applied to any other business venture.

[Pack-Secure]

You need to look into your industry to find out what type of licenses are required. What if you get sued, do you have insurance? You could lose everything you have if somebody sues you and you lose.

Keeping in mind that you are responsible for filing Sales Tax, State Tax, Federal Tax and FICA.

Once you go legit you will need to most likely tax your services, depending on the area you live in, which is something that gave you and edge over your competitors before you went legit.



My opinion is do not wait another day to get your business legit.

[Steve B]

With all that money, you should hire a lawyer and tell him your dillema. I wouldn't shut it down and start something else because you have a valuable client base already. You may have to save a bunch of money so you can pay your taxes retroactively, but in the long run it might be well worth it. You could have a great "entreprenurial" talent that would apply to any other business, or you could have just gotten lucky by picking the right service at the right time in the right location. Your next attempt could be a complete failure. Assuming you like your current business, I would fess up to all the proper authorities and make things right. You will likely avoid penalties this way. Then, move forward and make yourself rich.

[DeniseTaylor]

hmmm interesting...I think you should hire some reliable people and make your business legit before anything else...

I agree with this. Dealing under the table has its own set of problems, many of which can stop you dead in your tracks.

Best to get your legal rudiments in so your business can grow the right way.