# buisenss liability/Tax identification



## james.j.smith (Sep 20, 2010)

Last year I helped a freind plow as a sub for his landscaping buisness and was 1099'd. I plan to work for him as a sub again this year and log more hours. I have plowed previouse years and last year was my first year with my own truck. I know I didn't do thin necessaryly right this year I'm trying to fix that. I have gotten commerical auto insurance and a GL policy. I am not planning on doing any of my own contacts but may do some jobs on a case by case bases. (I got stoped last year a couple times for drives and do my inlaws alley). Do I need a buisness liceanse or a bues tax ID number? 

I do plan to sub again this year however I don't know what's going to happen since I'm haveing a hard time getting a hold of the guy I normally work for. If it's anything like the past I don't hear from him till the last minute. Is there anything elese I need to do?


----------



## grandview (Oct 9, 2005)

If he 1099 you and thats all your going to do then I think you can just put it on your personal income tax.I think. But then you can deduct any expenses for doing the work,I think ,again.


----------



## james.j.smith (Sep 20, 2010)

that is what I did last year I just wanted to see if I should be doing something elese,


----------



## Indy (Sep 23, 2007)

if you where 1099'd, he used you as an independent sub contractor.

If you go plow on your own, that is different.

On you deal last year, if someone slipped and fell, the called the other guy. Also, if you blasted your truck into on of his building (place you plowed) they would go to his insurance FIRST, then yours likely.

If you go plow on your own, thats all on you. So insurance and federal tax ID # is likely what you need and well as setting yourself up as a LLC or CO or whatever applies in your area.

Good luck


----------



## james.j.smith (Sep 20, 2010)

what is Co insurance and how is it different then general liability?


----------



## grandview (Oct 9, 2005)

Commercial truck insurance is for if you hit something while plowing.GL is slip and fall.


----------



## wizardsr (Aug 8, 2006)

Get in touch with a decent tax guy. You don't need to incorporate if you're just subbing and doing small jobs on the side. Your business income and deductions (fuel, tires, insurance, etc.) are filed on your personal taxes using a schedule C. While an LLC provides you some liability protection, so does GL insurance.


----------



## Raymond S. (Jan 8, 2008)

You can operate as a sole proprietor by using a DBA. Just make up a name (Bob's plowing) and now you are Bob Smith doing business as Bob's Plowing. It's a pass-thru entity so everything you do (1099s you receive) pass through to your social security number. You file everything on your tax return and most importantly, you get to claim expenses. You'll probably find that if you are only working for him you will have more expenses than income. It's not hard to wrap up enough expenses to claim a loss only plowing selectively. 

A quick note on LLC or corporations. If you are looking for protection and are a sole proprietor there is no need to form a corporation or LLC. It will not protect you from personal negligence. Spend the extra money on General Liability insurance and remain a sole proprietor. Add employees...form a corporation or LLC, it does protect you from them.


----------



## james.j.smith (Sep 20, 2010)

what is a DBA?


----------



## Raymond S. (Jan 8, 2008)

Doing Business As...


----------



## 78Craft (Dec 1, 2010)

grandview;1341812 said:


> Commercial truck insurance is for if you hit something while plowing.GL is slip and fall.


The GL covers any liability when the plow is down. Products completed coverage(rider on GL) covers slip and fall.

Truck insurance covers any liability while your blade or salter is not running or down.


----------



## james.j.smith (Sep 20, 2010)

I was told By my insurance agent that the gl only covers slip and falls. If I hit something when plowing the gl and my regular auto would not cover the damages. In order for the damages to be covered I need a commercial policy. Does this sound right?


----------



## wizardsr (Aug 8, 2006)

james.j.smith;1342425 said:


> I was told By my insurance agent that the gl only covers slip and falls. If I hit something when plowing the gl and my regular auto would not cover the damages. In order for the damages to be covered I need a commercial policy. Does this sound right?


I've heard it both ways. When we bumped a car with a plow last year, the commercial auto covered it. I would imagine something like that, damages occurring in the completion of work, could be run through GL as well.


----------



## grandview (Oct 9, 2005)

78Craft;1342413 said:


> The GL covers any liability when the plow is down. Products completed coverage(rider on GL) covers slip and fall.
> 
> Truck insurance covers any liability while your blade or salter is not running or down.


Well my old boss hit a gas pump at the tune of 3,000 it went through auto.


----------



## mx377 (Apr 16, 2009)

Hey Ray, Who are you using for GL in Mich?


----------



## Raymond S. (Jan 8, 2008)

Auto Owners for everything in my business except my inland marine who is Citizens. PM me if you want and I'll get you in touch with my agent. He is local to my town but is part of a large group. Really good guy.


----------



## White Gardens (Oct 29, 2008)

Raymond S.;1347049 said:


> Auto Owners for everything in my business except my inland marine who is Citizens. PM me if you want and I'll get you in touch with my agent. He is local to my town but is part of a large group. Really good guy.


I too also use auto-owners and have been extremely happy with them.

.....


----------

