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Should I Get Licensed and Insured? I'm 17.

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  • #1

    Should I Get Licensed and Insured? I'm 17.

    https://www.maksimumautodetailing.com


    I started my business about two months ago and it's going through the roof. I'm working with 2 body shops right now and going through about 4 cars a week. I am able to bring in about $500-600 weekly just working a couple hours after school each day and 7 hours a day on the weekends. I want to become as professional as possible, this means getting licensed and registered. Yet I turn 18 January 12...a bit too far away. If I become licensed with a general liability policy, I'll be able to work on the lots of bigger dealerships. Most dealerships in Baltimore, Maryland won't allow an unlicensed detailer to work on the lot.

    Right now I'm loving working tax free. If I charge a customer $250...I get the check for $250 and put it in the bank. Will this change when I get licensed?

    And can I get insured but not licensed?

    Thanks Guys
    Tags: None
  • #2
    Re: Should I Get Licensed and Insured? I'm 17.

    Nothing will change after your licensed. Your illegally not paying taxes now. You can illegally not pay after your licensed. It might be a little easier to find you but really nothing will change much.

    It would be best to abide by the law to avoid any problems. If your not certain about the law you can get FREE advice from your local SCORE. http://www.scorebaltimore.org/

    Greater Baltimore SCORE
    The City Crescent Bldg., 6th Flr
    10 South Howard Street
    Baltimore, MD 21201

    Phone: (410) 962-2233
    Fax: (410) 962-1805




    "Give to Caesar what is Caesar's, and to God what is God's."
    Freedom prospers when Christianity is vibrant and the rule of law under God is acknowledged

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    • #3
      Re: Should I Get Licensed and Insured? I'm 17.

      As Joe said...

      Even though you're 17, the one organization you don't want to mess with is the IRS. You're detailing for two body shops right now. The body shops are likely recording their payments to you as business expenses which they will record on their tax returns at the end of the year. Even if they are illegally paying you under the table (not likely, since they are paying you by check - a strong indication they are recording their transactions with you as operating expenses), the IRS can still penalize you for concealing income and unpaid taxes, penalties on top of the back taxes. I would definitely report the income, especially since you intend to register as a business in the near future.

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      • #4
        Re: Should I Get Licensed and Insured? I'm 17.

        The key word here is professional, if you want to be, then learn from the one's who are. Bottom line.
        2005 Trailblazer LT Majestic Red Metallic
        AutoGeek's 6th Annual Detail Fest & Car Show
        1st Place-Best Overall Detail
        3rd Place-Best of Show
        March 26th, 2011

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        • #5
          Re: Should I Get Licensed and Insured? I'm 17.

          Do it the right way. Get your paperwork in order. Follow Joe's advice.
          quality creates its own demand

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          • #6
            Re: Should I Get Licensed and Insured? I'm 17.

            I think for our age, it is pointless.
            Since we are so young.
            I am not licensed, and I have thought about it on and off, but to me it just seems like a waste of time.
            Joel
            Firefighter/EMT-B
            Rejuvenation Auto Detailing
            "Satisfaction Guaranteed or Your Dirt Back!!!"
            '99 F-150

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            • #7
              Re: Should I Get Licensed and Insured? I'm 17.

              Off topic a bit, but it's nice to see that some American youth is still willing to work for what they have. Hats off to ya.

              Being in the DFW area, I see mostly spoiled teenagers that are brats. Makes me sick.

              Comment

              • #8
                Re: Should I Get Licensed and Insured? I'm 17.

                I'm not sure you have to get a license, but you sure need a state sales and use tax account. To get on contact your states department of revenue.

                As for insurance, talk to an agent, you may be too young to get it.
                AeroCleanse, LLC
                Wisconsin's Elite Detailing Service
                www.aerocleanse.com

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                • #9
                  Re: Should I Get Licensed and Insured? I'm 17.

                  I don't know if you should or not. Depends on many factors and your risk comfort level. Personally I am both . Liability and garage keepers policy for $1,397 per year. $100,000.00 coverage. License $30.00. I can drive customer's cars without having to worry about some idiot on a cell phone, drunk driver or just making a mistake myself. (knock on wood) Also covers burning the paint or dropping the Makita at 3,000rpm! Not that I use it on that speed nor do I plan on dropping it on a hood of a BMW. Nice to have that safety net though. Also, how can you sell yourself as a professional and justify professional rates without it? First person that asks if you're licensed and insured either hears a lie or learns you are not prepared. Bad word-of-mouth advertising gets around faster than all the good references and reputation you may have worked hard to get. Some people are extremely lucky, though, and don't have any insurance on anything and never need it. All it takes is one time...
                  Last edited by 10degreesbtdc; Jun 5, 2009, 12:51 PM. Reason: correction

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                  • #10
                    Re: Should I Get Licensed and Insured? I'm 17.

                    Originally posted by 10degreesbtdc View Post
                    I don't know if you should or not. Depends on many factors and your risk comfort level. Personally I am both . Liability and garage keepers policy for $1,397 per year. $100,000.00 coverage. License $30.00. I can drive customer's cars without having to worry about some idiot on a cell phone, drunk driver or just making a mistake myself. (knock on wood) Also covers burning the paint or dropping the Makita at 3,000rpm! Not that I use it on that speed nor do I plan on dropping it on a hood of a BMW. Nice to have that safety net though. Also, how can you sell yourself as a professional and justify professional rates without it? First person that asks if you're licensed and insured either hears a lie or learns you are not prepared. Bad word-of-mouth advertising gets around faster than all the good references and reputation you may have worked hard to get. Some people are extremely lucky, though, and don't have any insurance on anything and never need it. All it takes is one time...
                    .

                    What exactly is the difference between liability and garage keepers, and do you need garage keepers if you don't drive clients' cars?
                    Ivan Rajic - LUSTR Auto Detail
                    Chicago, Illinois

                    Recognized as One of the Top Nine Auto Detailers in the US by AutoWeek Magazine!!

                    Comment

                    • #11
                      Re: Should I Get Licensed and Insured? I'm 17.

                      I've made my decision to attempt to get licensed and insured. I will only get insured if I can afford it. And worry not, I'll be filling my taxes and not hiding anything. I won't be making more than $10k so they won't be taking a substantial amount anyway. Thank you guys.

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                      • #12
                        Re: Should I Get Licensed and Insured? I'm 17.

                        Originally posted by ivopivo View Post
                        .

                        What exactly is the difference between liability and garage keepers, and do you need garage keepers if you don't drive clients' cars?
                        Liability protects you from people getting injured because of your presence. Tripping over extension cords, buckets, slipping in water, etc. Basically personal injury for everyone else except you. That's $100k coverage.

                        Garage keepers covers the cars in your possession, whether you drive them or not. Once you are handed the keys or even given access to someone's vehicle you assume full responsibility for what happens to it until you are finished and/or hand back the keys. It only covers up to a maximum amount no matter how many cars you have in your possession at the time. If you damage a car and it costs $80k to fix it, the other car(s) are only covered up to your maximum policy coverage. For me that's $100k, so the second car would only be covered for $20k. That is for a one year period. If you damage a $100,000 car the first day, you have no coverage for the rest of the policy year. I think the max for any one vehicle is also only $80k and not the full $100k coverage. One company I considered only covered $50k on any one vehicle, so it varies. I got a cheaper rate (by $3.00) and the higher per vehicle coverage of $80k from the third company I contacted so I went with them.

                        They don't cover acts of terrorism, mold, asbestos and other odd occurrences.

                        If something happens to their vehicle as a fault of some else, even though you have control of it it's on the owner's insurance. Say, for example, someone runs up in the driveway of the vehicle owner and smashes into the car or a hurricane hits it while you are working on it. That's the homeowner's/car owner's responsibility. If it's at your house, though, it's on you and your homeowner's policy or the owner of the property. I don't think Garage Keepers covers someone else damaging it if it's at your house or wherever.
                        Last edited by 10degreesbtdc; Jun 5, 2009, 02:43 PM. Reason: correction

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                        • #13
                          Re: Should I Get Licensed and Insured? I'm 17.

                          Like many trades,etc, You can have a day job lets say 9-5 (where you pay taxes) and then of course job on the side/weekends all under the table cash. thats what id do.

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                          • #14
                            Re: Should I Get Licensed and Insured? I'm 17.

                            Originally posted by Carfire View Post
                            I think for our age, it is pointless.
                            Since we are so young.
                            I am not licensed, and I have thought about it on and off, but to me it just seems like a waste of time.
                            Sorry Carfire, but that is not too sound advice.

                            Again, it only takes one small mistake to mess up a customer's car. Are you prepared to make up for the damage? Insurance is helpful if you plan on having a regular business going on.

                            Comment

                            • #15
                              Re: Should I Get Licensed and Insured? I'm 17.

                              Get a the licenses you can! and You should always pay your taxes.
                              You are serious about detailing aren't you?
                              You are driving peoples 2nd largest investments.
                              Get Lic., Bonded, Double Insured and very legal.
                              All of this will help you beat your competition!
                              And you don't want to get into legal trouble with your customers.
                              All of this will pay off in the long run.

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