low budget discounts at local parts shops

[Preacher]

thought i would pass this along, you may want to check into the legalities in your own town, state... but it has saved me a lot of money so far

for $25 bucks at my local city hall, i went down and registered as a small business. i did the DBL license (the one that pays taxes) so i don't get shafted tax time... as you can see from the pic... its not like it going to be a huge business... just a monk and a garage

but... since doing that: schucks, napa, autozone, a local springshop and even home depot have given me a discount on stuff, so far the avearage has been about %10-%15 off, but yesterday at the spring shop where i got my perch spring, i got a mainleaf fabbed, a and 5 leaves for $55 because of the "business" license.

heres what i have been working on.. http://66.221.37.206/pictures/greasemonk/Mvc033f.jpg

[Slide]

That's pretty cool. I might check into that. But with my luck, I'd STILL get beat up at tax time.

Thanx for the info! And cool project!

[Scott B]

You only get beat up at tax time if your business has income.

You will probably have lots of start up expenses (tools, parts) those first few years, too.
As a new business, you have about three years to show a loss (read deduction) before they begin to wonder.

All very good things to think about, as a new business owner.

[tokyo]

So you just went down to city hall, what about federal government and a tax ID number and all that jazz...

Did you have to pay for somesort of license, what about insurance??

interested as this might be something i want to do..

tok

[JOECOOL]

Be real cautious, what does your insurance man say. Is it a business policy? I did this kind of deal years ago but my insurance man told me they might not pay on a claim ( such as the Garage burns down), because I was running a business with a homeowners insurance.
There are some home related businesses that are Ok with insurance Co. Beauty shops,day care ect.
I don't want to rain on your good fortune but you may want to check a little.

[BELLM]

Here the local taxing authority picks up on this type of stuff and you have to render your business property, tools, shop equipment etc and pay property taxes. Older I get harder I find it is to beat the system. Just gave up years ago, take my licks, pay da man. http://www.jalopyjournal.com/ubbthreads/images/graemlins/grin.gif

[Preacher]

sorry i took so long to get back to you tokyo:
[ QUOTE ]
So you just went down to city hall, what about federal government and a tax ID number and all that jazz...

Did you have to pay for somesort of license, what about insurance?? tok

[/ QUOTE ]

i had to pay for some license and that was the $25 processing fee, if there is an accountant on the hamb they might know the name of the actual legalites, it was either a DBA or a DBL, (much different from a corporation, or LLC)...i don't remember.

i should have been clearer on this... the only reason i did this was to get the lowbuck discount at local part stores... with this particular license, you don't need to make profit and you don't need to report taxes, because (the one i applied for) isn't the same as a license with a business tax id, its more of a permission to operate. again the ONLY preemption to do this was in talking with local NAPA store, i asked how i could get a discount on parts... and they said you have to be a business... so i called the local state offices and found out there are several types of business choices... the one i went for was the lowbudget one with no responsibilities which was all schmucks and NAPA needed to "qualify" me for a discount... hope it works for you

[IntrstlarOvrdrve]

Do you know how old you have to be to do this? I assume you'd have to be 18

[Jbirds51]

Have you filed a tax return since you got this lisence?Can you still file a 1040ez?Can you take your "Bros" out to dinner,bench race,swap ideas,consult on cleaners and polishes etc and call it a business expense and WRITE IT OFF???If thats the case im game we do that anyway...I wouldnt mind doin that for a lil' money kicked back from big bro.

[Preacher]

because the particular license i went for isn't really geared for tax purposes, i would think you wouldn't need to be 18, but i really have no idea-merely speculative. however i think as was afforementioned if you were planning on taking your bro's out and writing the whole thing off...you would have to be making a profit in order to substantiate the write off.

on a side note recently at the radiator shop they knocked off $50 just because i was a legal local "business".

it might just because i live in bumkinville idaho... but you never know maybe other states have the same sort of setup.. goodluck

[Ayers Garage]

[ QUOTE ]
Here the local taxing authority picks up on this type of stuff and you have to render your business property, tools, shop equipment etc and pay property taxes. Older I get harder I find it is to beat the system. Just gave up years ago, take my licks, pay da man. http://www.jalopyjournal.com/ubbthreads/images/graemlins/grin.gif

[/ QUOTE ]

Like the brother said, the tax man will send you a form each year now, and you'll have to render taxes on your property. Trust me, I have a side business and when I went down and registered it all legal like, I got the form the next year in the mail come tax time. I pay a damn good accountant, and even showing to lose money on the business every year, you still have to pay the property tax. It's a seperate deal.

[FWilliams]

[ QUOTE ]
particular license i went for isn't really geared for tax purposes

[/ QUOTE ]

every license is geared for tax purposes, it how they keep track of you, city ,county, state, federal.

sounds like you have a DBA license, means you are
'Doing Business As" this means you are liable, there is no corporation to protect you, your business gets sued it's you and your possesion's they come after. also called "sole proprietor."

if the shops are selling you at jobber or wholsesale, and you dont mark it up for resale, you will be liable for any and all taxes on the products. in washington it is called "use tax" which means it was used by the business and not sold for profit.

if you live in a state that charges sales tax, you are responsible for collecting the tax and sending it in on a qaurterly basis.

they will tax your property differently if it is the business address, this can be a good thing at tax time, my office at my home, where both my business.s are registered at,is a great tax write off.

i operate 2 different business's, there is no simple license, if you are a business you can run it at a loss for a couple of years, then somebody is going to want to see some kind of profit.

a guy in the neiborhood here got a DBA, and said he was a n archery shop, was getting great deals on all the new equipment, wasnt running it as a business, just wanted the stuff cheaper.he just got done selling off his toys to pay taxes owed. 3 years after he abandoned the "business"

get some legal advice from an accountant, it might save you a lot of headaches in the future, i know i have had my share.

[Jbirds51]

Well damn...i guess everyones hookin you up on prices cuz they know uncle sams gonna bend you over the barrel in a lil while.....
Solution....drop the business right AFTER everyone knows you have a business...no business but you still save cuz idiots dont know you dont have the business anymore.
sounds good to me.
I get most of my parts from teh local junkyards so im getting a discount off new prices anyway.a lil cleaner a lil paint a lotta elbowgrease and what do ya know..new!!hahaha good luck buddy!!