First steps prior to hiring your first employee?
I am a sole proprietor with a DBA. I’m assuming I need to get an actually tax payer id number. Do I need to change to an llc or other org?
I am so ignorant when it comes to this part of the business side. This is probably why I have gone 7 years without hiring a true employee. I’ve been reading up on several areas of business, but this part is still unfamiliar.
John you don’t need to be a llc or any other type of organization. Personally, I suggest that before you get your FEIN and start the process of hiring your first guy is that you become a LLC. It’s super easy here in Oklahoma. It will protect you now that you are starting to have other persons on site.
I wish I had done it that way. I am starting the process of being a LLC for 2014.
Thanks, Jared. I was cruising local websites this morning, and ran across yours. I didn’t realize you serviced the Tulsa area. We should meet up sometime.
You don’t need to be an LLC to have employees. I am a sole prop still and have employees. Payroll through WCRA ($39.95 a month) and workers comp and you are set. I am looking to go to an LLC, but it isn’t necessary to have employees
Actaully, I don’t serive there anymore. My brother in law does widows there and I turned everything over to him.
If I know I’ll be in time I’ll give ya a ring though
The LLC protects you if you’re ever sued. Well worth the nominal cost. Do it! 
S-corporation is option too
Ok, what about the hiring process? Forms that need to be submitted to irs?
LLC is simple to do due and you should look into it.
John do you have a accountant?
Just me…
I would recommend a payroll service like paychex. They will report your new hire and take care of everything for you
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How can companies like paychex and payroll by wcra help me?I just count hours and hand my guys an envelope at the end of the week, as a business owner is this a not so smart thing to do regarding taxes and the likes?
or you can handle payroll yourself. quickbooks makes it fairly easy.
i highly recommend getting an accountant with experience in small business. they can help you with all these questions and save you far more than it taxes than you will spend on their fees. maybe work out a barter deal with one.
and I second [MENTION=2940]Garry[/MENTION]'s recommendation about setting up an s-corp or llc. it’s as much about protecting yourself from personal liability as it is about tax strategies.
As in you pay under the table?
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Thankfully I have a great accounting firm that I’ve been working with for the past 7 years. Been an LLC from the get go. But this is my first year under the name of cleanpro as I switched from being an auto detailing business to a cleaning company. I’ve realized that the way I’ve been hiring and paying my employees is stunting my growth. I will have a talk with my accountant about it. Thanks.
Interesting Haim what made you get out of detailing,I owned an auto detailing company for 20+ years.
That is a problem some business owners face, the growth being stunted by not putting people on payroll from the get go,some seem to think
hey cash is cheaper, but it is not.
[QUOTE=wcs;278792]Interesting Haim what made you get out of detailing,I owned an auto detailing company for 20+ years.
That is a problem some business owners face, the growth being stunted by not putting people on payroll from the get go,some seem to think
hey cash is cheaper, but it is not.[/QU
20+ years wow! I was getting burnt out from the cars and was looking for something to add on to my auto detailing and the add on completely overshadowed the primary service, i started wc and pw full time in april and the car end of it has gotten neglected. I feel bad to just let it go so for next season I’m gonna try to get a 2 man crew to handle the detailing from April to October. Part of the reason I also don’t want to let the cars go is cause I get to see my customer every week instead of every 4-6 months, no need to market to those people, I practically live there.
[/QUOTE]20+ years wow! I was getting burnt out from the cars and was looking for something to add on to my auto detailing and the add on completely overshadowed the primary service, i started wc and pw full time in april and the car end of it has gotten neglected. I feel bad to just let it go so for next season I’m gonna try to get a 2 man crew to handle the detailing from April to October. Part of the reason I also don’t want to let the cars go is cause I get to see my customer every week instead of every 4-6 months, no need to market to those people, I practically live there.[/QUOTE]
[MENTION=8960]Haim A.[/MENTION]
Window cleaning and pressure washing will treat you well, Just remember like you said you will not see these customer but 1 to 4x a year not on a weekly basis as in the auto detailing industry. So make every customer and invoice count.
Window cleaning you must advertise on a constant basis to gain growth (ask for the referrals.)
John I would look into an accounting company, it will come in handy has your business grows and transforms.
Id suggest getting an accountant. Worth the money in my opinion. Also, an LLC is SOOO easy I don’t understand why everyone doesn’t do it. Just bust it out and get it over with. It will cover you in the future.
