Best business structure for a powerwashing business/ how to do multiple states
I’m looking at starting up a small power washing business (for siding, decks, driveways) for side cash (not quitting my current job). I talked to my dad about it (who had been a long term missionary up til now) and he is interested in working with me. I could work on weekends and after work some days and he could do week days. I am the one who is going to buy the power washer and all necessary equipment. What is the best type of business for this idea? A partnership? A sole proprietorship (if so how do I pay my dad)? Or an LLC?
Also, I live near Kansas City and so will likely have work on the Missouri side as well as the Kansas side. Do I have to register a business in both states, or how does that work?
Thanks in advance.
Check with your Secretary of State office since the answer will vary by state. A LLC will separate the business from your personal assets should you get sued, whereas a sole proprietorship will leave your personal open to suit.
Good liability insurance is a good idea too.
Congrats on deciding to start a power washing business! Like Melanie said, opting for an LLC structure will give you more protection than a sole proprietorship. An LLC separates your personal finances from your business finances. It requires a little more paperwork to set up, but might be a good option. We cover the differences between each business structure here.
I would check with your local government, but it is likely you will need to register your business in each state you will operate. I also recommend writing a business plan – it will help you get all of the details worked out on paper, and give you something concrete to reference.
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