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Thread: Leaving day job for own company

  1. #11
    Join Date
    Oct 2013
    Location
    newburgh,ny
    Posts
    416

    My watchouts

    As said have 6 months money ready BEFORE you start, also

    Do not touch your retirement funds to do this.
    Do not put your house up for a loan to do this.
    Do not pay business bills before personal ones.
    Keep ALL insurances up to date, car/ fire/ home /business.

    DO HAVE your spouses 100% buy it before starting this.

    The only one above I stuck to was my house loan, now I will be working till 75 years old because my business failed, but I still have my house .

    Good luck
    Cowboy
    A cowboy may get thrown , but they always get up and walk forward.

  2. #12
    Join Date
    Apr 2007
    Location
    Huntington Beach, CA (19 Hrs. 22 Min. from Winged Horses)
    Posts
    6,143
    Quote Originally Posted by Fulthrotl View Post
    something to consider doing, this year especially, is to file IMMEDIATELY after the first of the year.
    even if you don't have the necessary form from employers, customers, and institutions to submit.
    submit anyway. show a return due. APPLY THAT RETURN TO THE FOLLOWING YEARS TAXES.

    something to consider.
    well, i just got off the phone with my tax prep lady.
    flush this idea. downside is far worse than initally
    thought.

    if you efile, and it kicks, paper file, and the treasury
    and FTB will just void the fraudulent return, and process
    yours normally.

    with my brilliant strategy, it'll probably just flag you for
    an audit. what a shock. not everything you read on the
    internet is good advice.
    ~New signature under construction.~
    ~~~~Please excuse the mess.~~~~

  3. #13
    Join Date
    Jul 2013
    Location
    Arcata, CA
    Posts
    359
    Quote Originally Posted by lielec11 View Post
    . . . This has been great as my wife and I are looking to begin investing in rental properties ASAP. . . .
    I can't speak to the question of your own company, others have given great advice. However, I have been in the residential rental business for at least 30 years, and it is not for everybody. Some days I think it is not for me.

    Every state has different laws, as well the Federal laws governing rentals. Here in CA we have the Calif. Apt. Association, which I am a member of. For a few hundred dollars a year, they provide legally reviewed CA appropriate forms, answer questions, and have seminars for legal updates, etc. If you have anything similar, it is money well spent.

    At least here, you usually don't make any money on a rental the first few years. There are always unexpected expenses. Can you weather a market downturn, where it stays vacant for months?

    One big lesson I have learned, when renting a vacancy, if they look good on paper, but a little bird in the back of your mind says they might be a problem, it is cheaper to leave it empty.

    Be friendly with your tenants, don't be their friends!

  4. #14
    Join Date
    Feb 2014
    Location
    Charlotte, NC
    Posts
    317
    Thanks all for the additional responses. Wife is on board and we have 6 months+ of expenses saved up so we are good there (plus her job can cover alot of the major expenses i.e. mortgage, food, etc.).

    Barbqranch - Thanks for your insight on this. I've been on www.biggerpockets.com to try and learn as much as I can about rental properties, particularly single family. I am in no rush and truly vetting every deal before even thinking about putting in an offer. I make sure to factor in monthly cost for things like vacancy, capital expenditures, repairs, etc. to make sure I would be covered as best as possible. Take a look at the website in your free time there are a lot of good resources there.

  5. #15
    Join Date
    Dec 2007
    Location
    NE Nebraska
    Posts
    33,489
    Quote Originally Posted by Fulthrotl View Post
    well, i just got off the phone with my tax prep lady.
    flush this idea. downside is far worse than initally
    thought.

    if you efile, and it kicks, paper file, and the treasury
    and FTB will just void the fraudulent return, and process
    yours normally.

    with my brilliant strategy, it'll probably just flag you for
    an audit. what a shock. not everything you read on the
    internet is good advice.
    I read your advice on the internet, you are a contributor I guess

  6. #16
    Join Date
    Sep 2017
    Location
    Napa, CA, US
    Posts
    58
    My wife has started her own business. She decided to do an S Corp for tax and liability purposes.

    When I was doing contract work I joined the local chamber of commerce and was then allowed to join their group health insurance. It was expensive insurance, but at least they had to accept me at the group rates. I was paying $550/month for the whole family, blue cross blue shield.

    My wife closed her first three leads, but now she's currently in between clients. There is marketing/networking leg work you can do in between clients that will supposedly pay off, but I would recommend marketing like hell to see if you can line up the leads and test the market before quitting.

    Maintenance contracts are nice. They don't last forever though. You should find a way to remind them of your value with every bill. Like a chart of how much money you saved them, if you can.

  7. #17
    Join Date
    Feb 2014
    Location
    Charlotte, NC
    Posts
    317
    Quote Originally Posted by Mark A. View Post
    My wife has started her own business. She decided to do an S Corp for tax and liability purposes.

    When I was doing contract work I joined the local chamber of commerce and was then allowed to join their group health insurance. It was expensive insurance, but at least they had to accept me at the group rates. I was paying $550/month for the whole family, blue cross blue shield.

    My wife closed her first three leads, but now she's currently in between clients. There is marketing/networking leg work you can do in between clients that will supposedly pay off, but I would recommend marketing like hell to see if you can line up the leads and test the market before quitting.

    Maintenance contracts are nice. They don't last forever though. You should find a way to remind them of your value with every bill. Like a chart of how much money you saved them, if you can.
    Thanks for the feedback, Mark. I already have a Professional Corporation setup in my name and I have been doing whatever marketing I can in the form of emails/linked in trying to fish for some work. It isn't the most productive but it's something to start.

    In my line of work it's hard to show a client how I'm saving them money. All jobs are bid by multiple vendors and each company can look at a job differently based on a lot of factors. I just try to show my value by providing the utmost service and quick response times for all questions, etc.

  8. #18
    Join Date
    Sep 2017
    Location
    Napa, CA, US
    Posts
    58
    Quote Originally Posted by lielec11 View Post
    In my line of work it's hard to show a client how I'm saving them money. All jobs are bid by multiple vendors and each company can look at a job differently based on a lot of factors. I just try to show my value by providing the utmost service and quick response times for all questions, etc.
    Well like I said, remind them of your value. Doesn't have to be monetary. As long as you can prove that it's necessary.

    During the recession, I was working for an anti-spam service. With the invoice, we sent a chart showing how many spam we blocked and turned it into man hours -> wages -> money saved. It helped slow down the churn rate during the recession.

    My friend who had been doing security audits told me he started losing maintenance customers and I told him what we were doing. He got creative and started issuing certificates of compliance with expiration dates. Years later he now has people calling him frantically because they haven't gotten a new certificate yet and theirs is about to expire. Usually, it just got stuck in their spam folder, so he blames me.

  9. #19
    Join Date
    Apr 2007
    Location
    Huntington Beach, CA (19 Hrs. 22 Min. from Winged Horses)
    Posts
    6,143
    Quote Originally Posted by kwired View Post
    I read your advice on the internet, you are a contributor I guess
    i prefer the term "unindicted co-conspiritor".
    ~New signature under construction.~
    ~~~~Please excuse the mess.~~~~

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