with my son as an employee. The additional work and expense of
incorporating or an LLC were outweighed by the simplicity and tax advantage
of this arrangement. If we incorporate in future, most everything we've
done is transferable.
I've now gotten all the business licenses and sales tax accounts needed with
city, county, and state, as well as an EIN. At the federal level, the only
thing we'll need to do for a minor is give him a W2 next January. No
withholding thus no reporting.
We also paid for a business liability policy to cover the machine. And
verified that our auto insurance does cover us even though we're on
business. It even covers us driving the rental trucks to transport the
machine.
The machine is installed -- bolted into the wall for good measure -- and
stocked. First day made $18 gross. Second day a lot less as someone
brought in free doughnuts for a meeting. He's tracking inventory pretty
closely at first to get an idea of what sells. Figuring on 20% waste, which
is a number drawn totally out of the air.
Now, I have to firm up the record-keeping aspect. And help him order some
more inventory. He will be in charge of product selection, inventory and
stocking, trouble reports, recording expenses and receipts. For this, he
gets a percentage of the net profit.
Sim
[Non-text portions of this message have been removed]
Need help? Contact Vickie at vics4us@yahoo.com .
http://www.educatingforsuccess.com .
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