Thinking of starting a small pc repair business out of my home - what do I need?

[plastick]

Basically I have a full time job not even related to my computer degree... I fix systems for people all the time for free but I am thinking that I should start charging and have a small side business running out of my home, then see if it grows into anything more.

Does anyone know the most basic way I go about legally declaring myself a business? I'm guessing I just need to go to the secretary of state and get a tax id number or something like that but I'm not sure.

Any input is welcome. Thanks AT

EDIT: guys, you're missing what I'm asking. all I want to know is how to make my self a legal business entity in the eyes of the government.

 

[Ichinisan]

You'll definitely need bwaines.

 

[xanis]

http://www.irs.gov/businesses/small/article/0,,id=99336,00.html

 

[plastick]

You'll definitely need bwaines.

um... what?

 

[plastick]

http://www.irs.gov/businesses/small/article/0,,id=99336,00.html

thanks

 

[Ichinisan]

um... what?

Bwaines. Helps a lot with comprehension.

 

[Doppel]

This was a failed business model a decade ago, I can't believe I'm still reading about people wanting to do it.

 

[catilley1092]

My advice would be to end the freeloading. While I'm sure that you probably do some of this work out of the good of your heart, there are those who takes advantage of this, as I used to do many installs (mainly Win 2K/XP) and virus cleaning. Many people wants something for nothing.

Begin to bill those who you do work for, then you'll have the necessary cash to get your business "legal".

Better yet, charge those you do work for, knock about 25% off the price, and keep it under the table (cash only). You'll come out ahead giving that discount, over all of the bookkeeping involved, paying quarterly taxes, sales taxes, etc. Limit your work to those you know, at least until you get on your feet good.

Then, you'll know whether you want to setup a fully legit business or not.

BTW, the best PC work that I've had done were by hobbyists, which I paid cash for. Many of the "big shops" or dealers are in too much of a hurry to do things right. Of course, this applies to many trades.

Best of Luck,
Cat

 

[Doppel]

My advice would be to end the freeloading. While I'm sure that you probably do some of this work out of the good of your heart, there are those who takes advantage of this, as I used to do many installs (mainly Win 2K/XP) and virus cleaning. Many people wants something for nothing.

Begin to bill those who you do work for, then you'll have the necessary cash to get your business "legal".

Better yet, charge those you do work for, knock about 25% off the price, and keep it under the table (cash only). You'll come out ahead giving that discount, over all of the bookkeeping involved, paying quarterly taxes, sales taxes, etc. Limit your work to those you know, at least until you get on your feet good.

Then, you'll know whether you want to setup a fully legit business or not.

BTW, the best PC work that I've had done were by hobbyists, which I paid cash for. Many of the "big shops" or dealers are in too much of a hurry to do things right. Of course, this applies to many trades.

Best of Luck,
Cat

The problem is all the work he does now he does because he does it for free. If people had to pay it would dry right up because they are taking advantage of him.

I never @*#(ing understood why people think that just because we can build a computer we actually want to spend our time doing it. None of us who know those in other professions expect free services; if I had a friend who does landscaping I wouldn't expect him to spend two hours of his Thursday evening digging trenches in my yard.

OP should stop doing this for free, he's being taken advantage of. Just always push things back, say you're too busy, or tell people to buy a Dell instead because it has a warranty or go to BestBuy and get its extended warranty. I more or less told people to piss off years back and it's been great. I hated spending sometimes multiple hours out of the blue sitting staring at somebody's computer as it was reinstalling windows, fvck that.

 

[Rastus]

You would spend most of your time removing malware or reinstalling windows. They the client will immediately click a link in an email or visit a porn site. Then at midnight they will call you up demanding you to come over immediately when their computer chokes because you messed it up. If you fix it one time for a fee, you are responsible to keep it running for the rest of the owner's natural life for free.

 

[catilley1092]

That's basically what I had to do. Show them what a recovery partition or reinstall disc is & how to use them, or better yet, learn to backup their PC's. These things alone would eliminate the need for a good chunk of the PC shop's services.

Once I done this, my little hobby dried up a lot too, but at least those who did show up again offered to pay me. Not having any overhead, I can do a install or virus cleanup for 50% less than the shops do & still come out ahead.

The OP has a great idea here, but it may take years to prosper in the trade. The competition is steep, many even makes house calls. He will need to do the same, take what business that he can get, and go from there.

Word of mouth is the best advertising that any startup business needs, provided that the provided services were of good quality.

Cat

 

[sportage]

People don't want to pay for upgrades or repairs. ANd won't.
If u fixed computers for friends n family, you probably already learned that lesson.
You just havent realize that... yet.
I suggest inventing the snuggie-foot. A blanket with arms and attached booties for the feet.

 

[Nebor]

The first thing you'll need: A better idea.

 

[Zebo]

A business plan would be a good start. The rest is perfunctory.

 

[catilley1092]

You would spend most of your time removing malware or reinstalling windows. They the client will immediately click a link in an email or visit a porn site. Then at midnight they will call you up demanding you to come over immediately when their computer chokes because you messed it up. If you fix it one time for a fee, you are responsible to keep it running for the rest of the owner's natural life for free.

I agree with you on this, there are many who has this type of mentality. For this reason, I'd have a disposable cell phone for business purposes, and turn it off after hours.

But these types once again reverts back to the freeloaders. If we get a car or appliance repaired, we don't (in most cases) get free lifetime service, do we? Same applies here.

When I install a Windows OS for anyone, I always install the latest version of MSE (2.0) on the computer, as well as MBAM, and create a shortcut to the ESET Online Scanner to run virus/malware scans & cleanup things. That is, unless the customer has their own AV/IS solution provided for me to install for them.

It's the customer's responsibility to keep their system secure from viruses/malware, and have a recent backup on hand, should anything go wrong. No consumer OEM covers damage resulting from these sort of things. Unless it's paid for as an option, and still the OEM refers the customer to the brand of the installed security solution (usually Norton or Trend Micro), for customer support.

If the customer wants me to remove viruses, I will, but not for free. Any time I do work for someone, I explain everything fully, as to what I cover and don't. And I never install OEM versions of Windows, it has to be a full retail version, or from a reinstall disc/recovery partition. I'm not getting entangled in the OEM/system builder regulations.

For all of these reasons, I highly advise the OP to do some deep thinking, as in "is this what I really want to do?".

Cat

 

[JMapleton]

Yet another PC-Repair business thread on ATOT. There are a million of these businesses out there.

But there is hope. You can be very successful at it, on one condition. You don't charge an arm and a leg like everyone else.

If you think you're going to get rich by charging people $100 to install some RAM or $200 to fix a virus like the big name PC places, get lost, because everyone else is already doing it.

Undercut everyone in price and while you may work harder, you probably will be successfull.

 

[plastick]

no no guys... you're missing what I'm asking... forget its a pc business... its home based business where i do X.... all I want to know is how to make my self a legal business entity in the eyes of the government.

 

[Nebor]

no no guys... you're missing what I'm asking... forget its a pc business... its home based business where i do X.... all I want to know is how to make my self a legal business entity in the eyes of the government.

Install more RAM.

 

[JMapleton]

Install more RAM.

And don't charge $100 for it.

 

[ELopes580]

Get ready to lose any dignity and heart you have left. You are going to have the life sucked out of you.

 

[Redfraggle]

This was a failed business model a decade ago, I can't believe I'm still reading about people wanting to do it.

My advice was going to be "you need a new idea."

 

[QueBert]

don't make it a legit business? I do on site computer repairs for a living, while I don't make nearly as much as most ATOTers (billions...) I live a decent life with only having to work 10 or so hours a week. I know I'm not helping you at all with your question about the government but I thought I'd be like everyone else and throw my 2 cents in.

 

[God Mode]

Better luck if you invest in a car and travel. Other than a small circle, good luck getting paranoid and cheapass people to trust their computers to some monkey operating out of his house.

 

[stargazr]

All you really have to do for the government is claim the income you earn. The question is how do you do that. You can just add up your revenue for the year and write it down on your return.

You can go to Legal Zoom or one of the many legal sites and get an LLC license. It will be licensed through your state. You will have to come up with a business name, it will be a separate legal entity in any legal matters. There is such a thing as a single owner LLC. The way taxes work is your income from the business is claimed on schedule C on your 1040 form, or whatever you use.

You have to go to your state's websites and find out details of doing business there; sales tax license if you are involved in retail sales etc. Also should check local zoning, permits.

The best way to organize your finances is to get a business checking account in your business' name. Set it up so all your expenses are paid through the business. Make sure you keep good records and have a receipt for EVERY EXPENSE you intend to claim at tax time.

There are other business structures like partnerships and corporations for bigger organizations; each has advantages and disadvantages. Corporations are much more involved with record-keeping, detailing minutes at meetings, double taxation, harder to dissolve if it doesn't work out.

 

[Raincity]

no no guys... you're missing what I'm asking... forget its a pc business... its home based business where i do X.... all I want to know is how to make my self a legal business entity in the eyes of the government.

Don’t. You spend more time administering and bookkeeping to the city and state regulations. One guy I knew was fined by OSHA for not having the MSDA sheets on display while running a PC repair shop in his garage.