I am wondering what i need to get in order to become legit, right now I have a generic name and I get a 1099 from a contractor and thats it. Does anyone know if in Ohio I have to get a contractors license, register my name or what? I am new to all of this. I will be a sole proprietor and I don’t think I need to incorporate.
First thing you need to do is get a clue and search around.
Ohio Business Gateway | Starting a Business
Found that in less then 1 minute. Stop being lazy, don’t ask for help on simple questions. By the time you typed this, you could have had your answer.
Where in Ohio are you?
I would suggest incorporating as an S-Corp. It adds a legitimasy to your business and sets you apart from the part-timers and hacks. Come up with a decent name before you do that.
Invest in liability insurance. Again, it adds legitimasy and will be a requirement for some clients. I believe a million dollar policy is the minimum you can buy. Most contracts I have signed require two million but they settle for one.
Get on line and file with the BWC. File with zero payrole and pay the $50 per half for the certificate. Same reasons as above.
All of this will cost some $$ but that is part of your overhead. When someone complains about your rates let them know that you have these things because you are a real business, not a guy out making beer money.
These are some basics. Let me know if I can be of more help to you.
Maybe you should talk to your accountant and lawyer for advise instead. You really need to educate yourself and surround yourself with knowledgeable people or else you will fail miserably.
How does incorporating add legitimacy?
In my mind incorporating adds legitimacy in that it identifies you as a real company. I don’t know what it is like in “Paradise” but here there are a lot of guys cleaning glass that look like they just got off a three day drunk. They do not look professional because they are not professional. But they are cheap. Until one is able to build a relationship with a client it often comes down to price and appearance. The price may be a bit higher but if one looks professional and has the “credentials” of professionalism, I believe that is a plus.
And it is good for tax purposes.
youre kidding right? :rolleyes: I thought this forum was here to ask questions…
Hey 99, Im in Ohio, Ive been a sole prop for 10 years, just switched to an llc and had my name registered in Ohio. The reason I switched from sole prop to llc was for liability on advice from my acct & lawyer friend). I agree w/talking with your acct, he should be able to tell you the right way to go. Good luck! …and keep asking questions, thats what we’re here for 
NO I’m not kidding. Reason being if you read some of his other posts for someone who has been around the buiness for a little while he should be able to do this himself. I have no problems with asking questions or people asking questions. But when it comes to something as simple as this, yet you have been around the block a few times. Come on. Why waste everyones time. Like I said in my first post here. That search took me less then 1 min. And I don’t see the logic in asking your competitors in how to start a business. No matter what anyone tells him he will still have to find out the REAL truth on his own, if he takes a competitors advice blindly he can end up screwing himself in the end. What if one of his competitors tells him “no you don’t have to pay sales tax.” lets him run the company for 1 year then reports him so he is forced to shut down, get fines and most likely not be able to survive his 2nd year. Business is nasty and you can’t trust anyone, let alone trust advice from the internet. I often question the motives of some on this board and if their advice is intended to help or hurt. I take it all with a grain of salt. Only person in my state I take advice from is Chris and there is a reason for that.
I am in Northeast Ohio, Mentor to be exact (20 miles east of Cleveland). Juggernaut…"New Jersey Window Washing. Monmouth and Ocean counties best window cleaning company. ", if you’re not in Ohio, why are you even posting? I specifically requested “Ohio” not Jersey. I have worked for a contractor for 16 yrs (ever since I was 15 yrs old) doing OFFICE CLEANING, not windows; I was paid cash($6.00/hr 3 hours on each sunday…REAL BIG MONEY , LoL!). The past couple years we switched to me being a subcontractor because he started payiong me be the job instead of a cheap hourly rate, I was making too much money for him to hide. I have been doing the windows and the floors for him, and thats it. Ever since I started paying taxes on the money he paid me, I just gave my tax preparer my invoices to the contractor and my expenses and he handled the rest. I plan to increase my business but I want to do it right. I don’t belive in taking anyone’s customers or screwing other businesses. If I know something that someone else who is starting out doesn’t, I will help them out, but if you don’t want to; thats’ up to you. I am just asking basic questions that I don’t expect full-blown answers to. A simple yes, you do need to do that, is sufficient, because then I will search out the proper info, but if I don’t need to do it, then I am wasting my time. If there is someone in my area that knows for sure we have to do something specific, then a simple “yes, talk to your account” is all thats needed.
If you feel that a post is wasting your time; then don’t reply and certainly don’t go searching out info and tell me “I” wasted YOUR time. Juggernaut,that comment about your female employee doing more than just washing your windows, really steamed you, huh? I don’t know anyone who buys $400.00 phones and gives $1000.00 bonuses to a simple window cleaning employee, LoL! Ahhh…then benefits of certain relationships!
To those that posted with the intent of directing me to the right direction, thank you. I will make an appointment to talk these questions over with my tax preparer.
What ever guy. So far from what I read on your posts sounds like a lot of bull to me. Your a sub-contractor? Stop the madness. You are a liar. How do I know? You have stated in the past you wanted to know what you need in order to be legit. Well smart ass, if you were a sub you would be legit. How do I know? SUB CONTRACTORS NEED INSURANCE. I CANT HIRE ONE WHO DOES NOT HAVE IT. Next your guy is going to save money by hiring you as a sub? Again BULL. Sure he would not have to pay the overhead in having you as an employee such as with holding. But you already said he is HIDING his income. So what the hell does he care? IF he is paying you CASH then odds are he is not reporting it anyway and not withholding so he is not saving money. If you really were a sub he would 1099 you and you would have to pay all the taxes on that income. Dude your can’t even keep track of your own lies or come up with good ones. I’m sure you’ll stay in business really long. You won’t even make it to May with your mindset. You’re asking questions about simple SIMPLE business related topics, yet try and sell everyone here on how your a sub-contractor. STOP THE MADNESS BRO. WE DON’T HAVE TIME TO ANSWER BULL QUESTIONS FOR A GUY WHO IS A LIAR AND MOST LIKELY WONT BE IN BUSINESS ANYWAY. You’ll end up like your low baller boss. You are going to see the overhead of going legit and decide to not bother, then wonder why you can’t land large contracts.
That’s because you work for a low baller. My last contract in Oct was for over 50 grand. That’s when she got her bonus because I could afford it for her. But when your boss is charging peanuts for jobs thats the bonus you get from him and your lucky if the peanuts have carmel on them.
I do get 1099s, read my intial post!..have been for the past four years. Again, this is a sideline business, not a main income. The guy I do work for works at LINCOLN ELECTRIC, so its a sideline business for him as well. You’re not even in Ohio, so this doesn’t even pertain to you. I don’t want large contracts. Exactly what part is bull here? The two buildings that the contractor I SUBCONTRACT for are directly across the street from each other. Both buildings are 95% office cleaning and he also cleans the shop floors. One company is a machine shop that builds components for BOEING, and the other company is a glass making company that makes the glass surrounds for large bulbs and makes large glass tubes. There are approximately 90 windows combined. I personally think he charges too little per pane…he charges $200.00 total. The larger of the two buildings has 47 windows and he charges them $150.00; so that breaks down to about $3.19 per pane and the other building has 27 windows at $50.00, thats $1.85 per pane. So I make $1.59 per pane on the larger building and $.93 per pane on the smaller building, I am currently between $25-$33.00/hr on the windows, since its takes me between 3-4 hours. Both buildings windows are all at ground level, no pole needed except for four panes which are 12ft up, I use a pole on those. I am already there doing the floors, spray buff waxed tile and scrub cement shop floors…using a machine. I make $80.00 per hour doing the floors, it takes me about 3 hours for the floor work; so the windows are no big deal. I would like to have my own accounts though, so I make the $2-$5.00 per pane and have much more write-offs. When he used to pay me cash, I only wiped desks and vacuumed, and only work 3hrs on sundays…I only made $18.00 a sunday, so he could hide that money. You act like hiding money is not the norm, come-on man, are you telling me that EVERY dollar you’ve made, you’ve claimed…RIGHT! 
I am not sure how to go about doing everything when I am directly working for the customer, thats all. I need to know what I have to do in order to be legit as a CONTRACTOR, one that supplies tools, chemical, everything; right now I just supply labor (now I am starting to purchase my own tools, in order to make my job quicker and easier). Theres no way he can hide $1060.00 per month and thats just me, there are two other guys that do the actual office cleaning, I don’t know what they make; so thats why we started the subcontracting and we pay our own taxes. I take my invoices to him, along with the 1099 and all of my receipts(fuel, repairs to vehicle…and so on) to my tax preparer Zappitelli Financial, along with my W2 from my full-time employer. This is how I was told to do the subcontracting; if I am doing it wrong, please tell me…as long as you know how its suppose to go in OHIO. I have contacted the SMALL BUSINESS DEVELOPMENT CENTER in the OHIO state government for as much info as possible. I am assuming there is more required of a contractor/client relationship business-wise, over just subcontracting labor to a contractor. I don’t know, thats why I am asking people on this forum who do know. I am sorry if you don’t want to help people, maybe you shouldn’t chime-in if you think I am wasting your time. Again, I appologize to those out there that did take the time to help me out and didn’t consider my questions a waste of their busy internet surfing schedule.
I understand all of you people out there that have LARGE businesses, us little guys can seem like a pain! I make good money at my full-time job but I am looking just to add to that and possible make a small business that my step-son can take over one day. I certainly don’t plan on quiting my job to do window cleaning, although obviously it could be done.
That’s a rude answer and no one wants to hear that trash! Lighten up a bit on the new guy.
New Guy…just seeing this Thread. Have not been on for while. If you have not yet discovered this go to www.businness.ohio.gov and on the left click on Starting a business. I have helped 3 other individuals start their window cleaning companies, from Training to marketing including the business end and accounting. Hope this might help a little. Good luck.
