Preparing to purchase my first bus

[Sara]

Originally Posted by Ucwarrior1

Yeah I feel you on the liability issues. It's obviously my largest concern! I havn't called about business insurance yet however and I'm afraid that may be too costly to start up with. Would I then be looking for a company to both insure the bus and the business? Or is the business covering all assets?
I'm assuming an LLC would only be beneficial if I reach a certain amount of revenue and for the first year I don't anticipate reaching over $50k. Not to say I can't do it..but I'm already a month behind

Don't be afraid to call. Insurance companies want to sell you something because that's how they make profit... they'll put together a business quote for you, but it's not as if you have to pay them to run the numbers. It might take a bit of time because they will have questions for you, but at least you will know where you stand. A business policy will include coverage for your bus and other business equipment (tools, etc.) and coverage for liability, too. Everything you should need covered will be taken care of through the business policy.

Originally Posted by Ucwarrior1

I was preparing to setup a sole-proprietorship rather than an LLC being that I am the only one currently running the business. I currently have no assets except my trans am and a small savings and about $800 in investments. I don't have much to lose I can consider an LLC but I think I may have to read more into that...which is really difficult because with my fulltime job serving..I have 3 business books, a web design book, the web design job, and a lot of advertising to get done over the next 2-3 weeks. I'm time crunching!

I'm not an attorney, so I couldn't say which would be best for you... just making sure that your business entity is separate from you as a personal entity is what's paramount to protecting yourself. This is a pretty good un-biased site if you want to do a little light reading: http://www.sba.gov/content/limited-liab ... ompany-llc

Good luck! Haha. It looks like you won't need help staying busy!

[JakeC]

Basic difference in liability, as far as I understand...

Sole Proprietor, you are liable, and your assets are exposed (haha, that sounds funny). LLC, you are a separate entity and therefore protected. It removes your personal assets from the business.

[Ucwarrior1]

Well how easy is it to change to an LLC later down the road? If I have no assets (a $1500 honda accord and $21,000 in student loan debt) then it really isn't that important right? I'm a server on the side and I'm wondering if there are benefits to being a sole proprietor. I also don't know which may be better, registering the business in Wisconsin or Minnesota. I reallllly don't have up front money for an attorney or an accountant for these suggestions

[Sara]

Originally Posted by Ucwarrior1

Well how easy is it to change to an LLC later down the road? If I have no assets (a $1500 honda accord and $21,000 in student loan debt) then it really isn't that important right? I'm a server on the side and I'm wondering if there are benefits to being a sole proprietor. I also don't know which may be better, registering the business in Wisconsin or Minnesota. I reallllly don't have up front money for an attorney or an accountant for these suggestions

It isn't just about protecting your current assets. If someone sues you and you can't cover their damages immediately, you might be paying for years to come. That's a super big bummer when you know that the court is going to garnish your wages for the next 10 years.

I believe changing your business entity from a sole proprietorship to an LLC is as simple as signing some legal paperwork and having your signature notarized. It might depend upon your particular state's laws since business laws can differ from state to state, but you'd want an attorney to get everything drawn up and sent in anyway. If you're doing something simple, I know LegalZoom.com has gotten a ton of good ratings from consumer reports for its ease of use and affordability. Something is better than nothing!

I don't know the answer to your question regarding which state should house your business. I would think that the primary residence for your bus would be the state you're doing business in, but I am definitely not an expert in this area. Something makes me think there are weird tax laws for some businesses in Minnesota, but I'm not from there so I can't be certain. I do know that Wisconsin doesn't have reciprocity with the majority of other states for traffic violations, but that doesn't really help you from a business point of view.

[Ucwarrior1]

Yeah...seems that MN state tax is a lot higher. Since I wasn't sure of where most of the trips will happen (either MN-WI-MN-WI- back home to MN or staying instate) I didnt know if maybe having it based in WIsconsin might prove to be better tax wise..even though it's minimal. It's difficult considering the fact that if i base it in WI i wont have access to the driver/bus unless i make the 2 hour trip to check on things once they are up and starting.

I know I'm asking a lot of business questions and I apologize. I so new to most of this and forums (talking directly with folks) is how i get most of my information nowdays. Other business aren't wanting to talk to me about the mechanics or structure.

One of the things that hasn't really been touched all that much is the bus. I mean..I'm here on a conversion site right?

So even after getting this started I'm going to need some help discussing what changes should be made and how I should go about them. I still think that some construction with seat layout should occur. If not..some removal of seats and installation of better seating. I plan to go scope through some past threads to get an idea on costs etc...

[crazycal]

I've just glanced over the newer posts. Not sure if you are selling or allowing alcohol but I saw you mentioned 18+ age. No to alcohol then.

[BUBB]

Be sure to double=check with an attorney but from what I have personally witnessed if you set up a llc or a corp (as a small business) it does not always protect you from lawsuits and liability, if a suit arises the court at the behest of the opposing attorney will evaluate why the llc/corp was created and if they cannot find a real business reason for its existence they may still find you are personally liable.