What are one-man operations earning per year?

[jim dungar]

Most times the amount is small enough they don't care.

Until you have been doing it for enough years that they can collect a good amount of back taxes and penalties.

 

[AC\DC]

Your interpretation vs theirs, one auditor will feel different than another.
Just fight them if you can prove it.
they like people that roll over, they back off from people that are going to challenge them.
Unless your doing something that is obviously wrong.

 

[petersonra]

Until you have been doing it for enough years that they can collect a good amount of back taxes and penalties.

A lot of people slide though. Especially regarding the rules on personal use of company owned property that is supposed to be accounted for as income. Now and then though, the IRS nails someone pretty seriously for the violations.

Most people can get by cheating on their taxes a little bit because the IRS just does not care but if your income and taxes are outside of the norms enough, you will get audited and have to prove every nickel.

 

[readydave8]

you can also take vacations and deduct many expenses (travel, lodging, meals...) if you happen to conduct any business activity while on that trip.

I thought meals changed to 50%‽ If so have to leave huge tip to come out on the deal

 

[AC\DC]

Correct on meals, told tips don’t count

 

[mayanees]

$135k base plus sidejobs that are Arc Flash Studies at $15-50k per year. I'm a Master Electrician and a registered PE, and much of my work is opening panels for Studies. Stay in school I'm 63 and I don't think I'll ever stop doing this work because it's good work and I have fun doing it.

 

[AC\DC]

Cool man, Ark flash studies sound like that would be fun.
Always wanted to go back to school to be electrical engineer.

 

[ramsy]

$135k base plus sidejobs that are Arc Flash Studies at $15-50k per year. I'm a Master Electrician and a registered PE, and much of my work is opening panels for Studies. Stay in school I'm 63 and I don't think I'll ever stop doing this work because it's good work and I have fun doing it.

My one-man Gross is half that, but consistent during pandemic, and 2018 Great Recession. My bank qualified me for a very small 6k PPP.

Many of my rivals won't roll the truck without a service upgrade. People are flabbergasted that I show up at all, and praise me with online reviews for being honest. I deal with hard-working families, and private citizens who had their fill of dirt bags & corporate scum.

 

[kwired]

I thought meals changed to 50%‽ If so have to leave huge tip to come out on the deal

50% is still more deduction than nothing though.

 

[kwired]

A lot of people slide though. Especially regarding the rules on personal use of company owned property that is supposed to be accounted for as income. Now and then though, the IRS nails someone pretty seriously for the violations.

Most people can get by cheating on their taxes a little bit because the IRS just does not care but if your income and taxes are outside of the norms enough, you will get audited and have to prove every nickel.

I don't remember what the amount was but think you need to generally be into at least six figures of net income or something looks pretty obviously out or ordinary for someone in your business/trade before it will normally trigger auditing.

 

[petersonra]

I thought meals changed to 50%‽ If so have to leave huge tip to come out on the dea

I don't remember what the amount was but think you need to generally be into at least six figures of net income or something looks pretty obviously out or ordinary for someone in your business/trade before it will normally trigger auditing.

yep. Like I mentioned before, normally the IRS does not much care about someone who cheats the government out of a few hundred bucks in taxes. If they happen to notice they will request you pay but they really don't care much one way or the other. They want to get the serious cheaters more.

 

[kwired]

yep. Like I mentioned before, normally the IRS does not much care about someone who cheats the government out of a few hundred bucks in taxes. If they happen to notice they will request you pay but they really don't care much one way or the other. They want to get the serious cheaters more.

It can possibly cost them more to try to go after just a few hundred dollars than it is worth.

 

[AC\DC]

Even if they say you owe thousands, plus late fees, penalty. As long as your following the rules and it can all depend on interpretation (gray area) if they know your going to fight then they generally Back off. Get a good account/cpa and and tax lawyer. Would rather pay them then the IRS.
Just my two cents I will not saying a thing more cause I keep repeating myself.

 

[Amps]

Can I chime in here? Think outside the box. Add low voltage to your electrical job. security camera runs, cat 5 /6 runs. Good money at an average of $100 per drop. It's easy to learn to terminate a cat 5.

I did that years ago and it made a big difference. It separated me from other electricians who could not offer that type of work. A bonus is that I would get a call to estimate electrical work and the owner would learn that I do security or networks and I would get that work too. Being diversified has its advantages.

 

[Amps]

I am doing WELL better as a one man show.....

When working for "the other guy" the best I could make in this area (at the time)would be $20-25/hr, or, $800 to $1000 a week before taxes.. After taxes and working on Saturday $700
In a good week working solo service calls, I could earn that in 2days and go fishing the rest of the week.
A LLc tax deductions are.... GAS.. TRUCK... TOOLS.... and lots more.

Having an accountant as a wife is VERY fortunate .

Another contractor once told me never go to more than one crew.. He is upto 4 crews and has trouble making payroll every-now-and-then. His life was also less stressful and more profitable when operating a one-man-show.

I had three trucks on the road, one for me, the other with two employees each. Had tons of income but I was a banker, chasing money and worrying about getting work to keep everyone busy and making payroll. After that all ended due to recession, I was back on my own and have been ever since. I never want to go back to that nightmare. I'm earning just as much if not more by myself.

 

[ramsy]

I had three trucks on the road, one for me, the other with two employees each. Had tons of income but I was a banker, chasing money and worrying about getting work to keep everyone busy and making payroll. After that all ended due to recession, I was back on my own and have been ever since. I never want to go back to that nightmare. I'm earning just as much if not more by myself.

Also avoiding employess until there's ownership for them, incentive to do something for themselves, like giving them a peice of my action as a corporate officer. Until I can recruit specialists in other markets to form diversity, January will traditionally remain the slowest month for service, there's no way to keep myself busy, much less anyone else.

 

[Another C10]

I'm considering the direction or possibility if capable to sell my book of business when that time comes. I'd like to think my phone number is worth a decent buyout. Anyone out there do this. I'm just a 1 man company these days although fortunately I have a good size list of happy clientele.

 

[hillbilly1]

I have three commercial/industrial clients that keep me busy just about all of the time. Spent all last week just at the industrial client. He has just ordered a big CNC machine that will probably be a weeks worth of work next month. He’s wanting to build another 30x80 work area this spring too. One of the others, a new mechanics shop on some land he just bought.

 

[oldsparky52]

I'm considering the direction or possibility if capable to sell my book of business when that time comes. I'd like to think my phone number is worth a decent buyout. Anyone out there do this. I'm just a 1 man company these days although fortunately I have a good size list of happy clientele.

I believe you will be disappointed as to how much a phone number might not be worth.

 

[oldsparky52]

I was self employed (mostly me and a helper and busting my azz) from '96 to '08.

My worst years were starting out and my taxable income was in the $70k range. Mostly I was in the low to mid 100's. That was pretty good for down here. I did have one great year where I hit just short of 200k.

I invested poorly and took risk I shouldn't have and looking back, I would be as good or better than I am now with a steady good job with benefits.

That being said, it was an exciting time and I wouldn't change doing it (I would have invested differently).

I was atypical in that I traveled and specialized in gas stations and marinas. I never competed in the more common markets like residential and light commercial. I did do some liquid systems in industrial settings. Other people that trusted me and my work is what made it happen for me.