Compter repair business

**Dannyduzbusiness** · 03-01-2011 10:19 PM

I have been an IT for about 2 years and have been building and fixing computers for over 10 years. I currently work with two gentlemen who want to break off from the company we currently work for to come work for me as soon as I get this business started. I have told my friends to keep up with our current job and we can have this as a side project to see how well it goes. We have been planning on this for awhile now and I feel I have the knowledge needed to go through with it and think it is time to give it a shot.

I am 6mo away from receiving a BS in Business Management and want to start this small business from a garage and pay them in cash. If it is a success, once I am finished with school, I can take the time to make a business plan and possibly take a loan out to expand the business.

-Open to constructive criticism

-Thank you for your time and suggestions

Questions:
Can I pay my two techs in cash if they are working for me out of a garage?

?

Im planning on keeping the business small using clients from school and social networks (facebook / twitter). so, with that being said..
Would I need to have a business license to perform this project if its out the home?

?

**Chasers11** · 03-01-2011 10:33 PM

Hey Danny,

You can pay your two techs working out of the garage in cash but legally you'll still be required to report those payments on your personal income tax return (if you continue to run it yourself).

As for the licensing, I'd check with a lawyer in your city for local ordinances or state regulations that may require a permit for businesses out of the home since laws vary from jurisdiction to jurisdiction.

Just for interest, what makes you different from all of the other computer repair shops?

Good luck!

**chanson** · 03-02-2011 08:34 PM

Pay them as sub contractors it will help you avoid some of the HR costs, and you can pay them as you need them. Very good for boot strapping models. Still consult an accountant on this matter of course, but I did it and in the same industry. It worked well.