Starting an EZ-Go cart conversion business! Any info?

[yurtle]

Originally Posted by Davemuzz

Lcordell02 ,

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For the liability issues, you for sure need to form your business as an LLC (Limited Liability Company). That way your personal assets are protected should any lawsuit be filed from stupid customers, or should you sell a defective product. Talk to a Lawyer and a CPA (yes a CPA...not just a “tax guy”) about this. And talk to both. Don't let $600 to $1,000 of initial fees cost you twenty to thirty times that down the road. Be smart. If a CPA can't save you twice his annual fee in tax savings, then your dealing with the wrong guy.

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Think about it.....starting small isn't bad. I know a lot of people who started in their garage. Hey....Bill Gates did!!!! And remember.....if you don't take a chance, you can't make any money!!! But the most important thing is to obtain sound, quality good advice from some solid professionals!!! (Hey....you wouldn't give yourself a heart bypass!!!)

Good luck.

Dave

If you do start off in your garage, you'll probably want to bump up the liability on home-owner's insurance if you have clients visit you. I had to do that for my home-based consulting business. You can write off expenses associated with your garage, such as insurance, utilities, etc. but you'll probably want a CPA on your side if the IRS audits you.

[JohnnieB]

Lcordell02,

You might also want to look into a Subchapter S Corporation.
There is more IRS BS, but you can save $ on the self-employment tax.

I became an S Corporation when I got out of the Air Force in 1975 and along with some others, created a Subchapter C Corporation that repaired medical and dental equipment.
The C Corporation was sold a few years later, but I still maintain the S Corporation and filter any fees and/or incomes other than a salary paid by an employer, through it.

I'm retired now, but I still do some consulting, so I'll keep it going until otherwise intelligent people stop asking me what time it is and then loan me their watch so I can tell them.

[davet]

Wow,,,after reading all that I wouldn't go into business,most all of this is fact,but it also comes along with each level you reach.You can be the biggest EZGO dude in AL if you have it in you to do it!I think if look around you'll find most of the guys in this biz or any other backed into it.Also remember the lessons you learn the hard way will be the ones you'll never forget!Good luck,it is after all the American Dream !!my .02 Dave

[Coltf1991]

I am not doing things electrical so as far as diagnosing goes, well let's just say that's out of my hands. I just do stuff like lift kits, brake work custom bodies and radios and lights. And usually for family and friends. I am in school and have a full time job. This is not what I want to do or get myself in to. Just like to do it because it's fun and I get tired of working on cars all the time.

I was just trying to give him so encouragement.

[davet]

Colt -your on the money !!!When it stops being fun, BANG your in business!!!

[Spawn]

there's a reason its called work!
Legalzoom and a LLC is enough to protect you. At that level you better be making some good money to justify it though.

[Scooter B]

This same thought crossed my mind, after I built my 08 PDS into what I wanted, I looked at what I had spent, then looked at what the dealers/shops in the area were selling them for and realized the profit in them. After some thought, whick covered most of what all the guys are saying here, I decided to stay away from that and keep building houses (even in this economy)
Building them one at a time in the garrage, playing with it for a while, sell it on craigslist for a nice little profit and start over with the next one, that's all I might do, just because I enjoy building them and always want something new to play with.

Good Luck!