Need Some Positive Renforcement

mmike032

maybe this isnt the right place to post this but maybe ill get more replies here.Ok so im just starting out on my own and trying to do everything the right way bussiness wise.I dont have ins yet but some of gcs take out for it.The work i done this week this particular gc is taking out 15% of my check to cover me.Doesnt sound to bad bc i have been told wc is around 20%,or is it.Anyway on top of that i have to pay uncle sam 33% for self employment tax (GA). Is this the same everywhere? So thats 48% of my check. WHAT THE F--K. How am i supposed to surrive like this. I am doing something wrong . Someone please point me in the right direction bc i am already thinking about saying to hell with it and finding something else to do

Murphy

Wait till you have to pay for your own insurance, vehicle coverage, health coverage, business coverage, employee coverage. Not to mention personal property tax. I wonder why so many of us fail every year.

Keep your head and your prices up, try to do some direct jobs instead of working for GC's they always want everything done cheap.

My 2cents
Murph

RizzoMaryland

Insurance sounds a little high to me.. Im a one man show and I pay $64/month for general liability insurance ($2,000,000 coverage) as a general contractor!! I do have some discounts (yrs in business, no claims) but even when I started out 10 years ago I dont believe I was paying more than $250/mo for business insurance.

Shop around and get insurance. Its cheaper in the long run and also a marketing point for your business.

PressurePros

Workman's comp and general liability insurance are two separate things. If you are a one man show you can probably get a disclusion for yourself (if your business entity is set up right). GL Insurance is something you should carry. If GC's are taking the money they need to cover their butt's. 20% to cover WC and liability is probably fair.

You need to get with an accoutant and set yourself up as a corporation either LLC or perhaps subchapter S. Who took out the 33% for tax? I would think your GC would be 1099'ing you which means he shouldn't take any taxes. Your first year in business the IRS does not expect your company to make any money (because it won't). You should have plenty of deductions to reduce TI to just about 0. You should think about some professional guidance. Set it up right from the beginning so you don't lose money from jumpstreet.

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Ken Fenner
Pressure Washing PA
Roof Cleaning Services PA

joasis

How about more information? Do you have employees? Have you talked with an accountant yet about your actual tax rate, and what you might expect based on your tool purchases through the year, expenses, etc? You say you don't have your own insurance, but if you are a one man show, your state may have a waiver available....in Oklahoma, the state allows a contractor to have a certificate of non compliance, meaning they they accept liability for accidents on the job site, and release my of responsibility. You may not use a certificate if you have employees.

Any other details, just add some information, and I am sure you will get the advice you are seeking. But consider this: You are assuming you will only keep half of your check......BTW, you need to think like a businessman.

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Jeremy E

Call around and see if you can get rates for "artisan's" general liability. If you're just doing trim (no structure, no roofing, etc...), you should be able to find a policy for less than $1000/year, even starting out fresh. Most artisan's insurance includes some amount of coverage for tool theft.
Like it was said above, if you're on your own, you shouldn't have to worry about worker's comp. Just make sure that any subs you may use have their own coverage.

Hang in.

mmike032

the 33% is what my sister in law told me i would have to pay. She has an accounting degree. I usually just use 1 helper and plan on 1099 him.The gc told me that even though i dont have to have wc by law he has to cover me to cover his butt.Yes i do have alot of write offs from tools ,trailer,etc..I have been using quickbooks to keep up with everthing but as of now owe about 3000 in taxes if 33% is right.and yes have been putting money back to cover it. I just dont see how this can be worthwhile if 48% of profit goes elsewhere not includeing general liability. I have also been told to 1099 my helper he would have to have his own ins.Will all this come back to bite me in the a-s at the end of the year

KentWhitten

Many people I have worked with don't carry the "workers comp" stuff, which BTW is friggin' expensive if you go through the state. Find an insurance broker to get you general disability coverage and find out what you need to be covered for and how much you can afford.

I've never been told that I NEED to have any type of disability insurance to work for someone, but they might require it. It's up to you if you want to work in these conditions. It's good, yes, but like you said, it's tough out there.

My old boss told me many sayings and one was "If it was easy, then everyone would be doing it", another is "careful what you wish for, you just might get it"

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If you correct your mind, the rest of your life will fall into place ~Lao Tzu

Custom Cabinetry - Portland, Cape Elizabeth, Scarborough, Kennebunkport, Yarmouth, Falmouth, Cumberland, Ogunquit, Maine

Salmon Falls Cabinetry

woodman42

And customers wonder why you have to charge so much.
I don't know about GA, but we pay 28% tax payed in four times a year.
I often sub out to a GC to do commercial remodeling and they require me to have general liability insurance, not disability insurance.
They don't take any percentage out for anything.
No its not easy getting all the insurances set up and still eat but if you shop around and do your homework it is possible.

sendres

Is it me, but why is the gc taking it off in the first place. It should have been discussed at start not an arbritarily taken off when you get your paycheck. That would allow you to adjust your your price accordingly or he should be allowing for it his price to the customer to start off with. To me it seems like he is trying to pad his pockets.

But maybe things work a little differently here in Canada. Such as WC is not an option, you do need to be covered under someones policy and its completely governemnt run.

Hope you can make it work.