Housecleaning Business - Going "Above The Table"

**karona** · 04-27-2007 01:28 PM

Hi, this is my first post!

I've had a few housecleaning clients for the last number of years and finally decided to ramp up the business and go full speed ahead. I would like to remain a sole proprietor for now, and here the steps I've come up with to get the proper paperwork filed:

1. Tax ID number - done
I know I can use my SS# but do not want to.

2. Fictitious name registration - not done
I do not yet know how to get one, other than paying $400 at LegalZoom, or doing all the legwork myself. My business name is not common. If I could just get the registration, that would be great. Any advice here would be greatly appreciated. I do not want to use my last name.

3. Business checking - not done
Will happen as soon as I have #2.

4. Business insurance - not done
Considering going through State Farm since my car and house is insured there.

5. Business license - not done
From what I understand, I can get this application at my township office for a $60 fee. I live in PA, btw.

I already have clients, a website, an advertising solution, etc, so I did not consider this to technically be a "starting a business" topic which is why it's here, not there. This feels more like a "tying up the important loose ends before increasing income" kind of thing.

Any advice or ideas would be greatly appreciated. Thank you!

Karen

**zoobie** · 04-27-2007 03:40 PM

Hello there, Karona!

Great to have you here at the forum.

**pbradish** · 04-27-2007 03:51 PM

Originally Posted by karona

2. Fictitious name registration - not done
I do not yet know how to get one, other than paying $400 at LegalZoom, or doing all the legwork myself. My business name is not common. If I could just get the registration, that would be great. Any advice here would be greatly appreciated. I do not want to use my last name.

Hey Karen, welcome to the forum. What I do when registering my business names is find my secretary of state web site and print out the correct DBA forms from there. Generally, everything you need from the government is now online. Just print, fill it out, and mail it with the check.

**karona** · 04-27-2007 04:00 PM

Thank you both!

I did find the DBA form and have a printed version. Once I get PA's site to recognize the login I just created there (grrr), I can even apply online. The problem I'm having is that it would seem I'm required to put an ad in the paper and notify the SoS, among other things. This means waiting a certain number of weeks for any petitions against me using the name I picked. Does this sound familiar to you? Seems a little hokey to me.

**pbradish** · 04-27-2007 04:05 PM

Yep, it's the same exact thing up here in Minnesota. I had to post a small ad in the local paper one city over for my previous DBA. It ran for 2 weeks and that was that.

**karona** · 04-27-2007 04:07 PM

Oh, that's not too bad. Do you mind telling me what you had to state in the ad?

**pbradish** · 04-27-2007 04:23 PM

to be honest I called them up and let them know about the situation and they did the rest for me. It was a $20 fee. I've sold that business recently so the documents are shredded and I can't remember what all was on them. I think it was just a declaration of business with the phone number and address.

**Corey Bryant** · 04-27-2007 04:28 PM

From what I can remember a long time ago when I worked at a newspaper, they will ask you a few questions and then it is a standard ad that is in the paper. You might check out the classifieds for something

Also, you might consider a merchant account as well - this way, they can pay you via the phone or you can set up a recurring billing on the gateway. You might even look into setting some type of payment script on your website.

You also might see if SCORE is in your area to help you through some things

**karona** · 04-27-2007 04:34 PM

That will work!

**karona** · 04-27-2007 04:36 PM

The type of business I have makes it easy to accept payments. The client simply leaves cash or check on the counter when I come to clean.

As for banking, I do intend to set up a business account, but my bank requires proof of ficititious name registration first.

This seems to be so painstakingly slow compared to the actual getting of clients!

And thank you for the info.

**pbradish** · 04-27-2007 05:16 PM

It can be a really slow process, but the trick is to stay as busy as possible and prepare/brainstorm as much as you can in the meantime. It sounds like you're pretty busy as is with your clients and have a great handle on the business itself, and are now just going through the motions paper-wise. Congrats!

**karona** · 04-27-2007 05:19 PM

Thank you! Yes, I have spent ALL day printing brochures (my form of advertising), making temporary magnent signs for the car (until I can afford vinyl ones), and just about everything else I CAN do while waiting to get the paperwork done.

**radreality** · 04-27-2007 05:30 PM

I now have my attorney do all the paper-work when I start business entities; but when I did it myself I never remember it being that complicated for a schedule C business.

For a Schedule C business license:
1. Apply online with your states department of licensing for a business license; which you will apply for any and all trade names (DBA's) at that time as well. (usually between $35 and $65)
2. Get the license in the mail a couple weeks later.
3. Go to the bank with the license and open up a business checking account.

I know each state is different, but they typically aren't that different. Also, wouldn't you need a business license before you can have business insurance?

**karona** · 04-28-2007 09:47 AM

I'm not sure which I need first. That is something I plan to research today at the State Farm site. Thank you very much for the 3 steps, though, that helps a lot. I do think I'll need to add step 1b. though and do the two-week add in the paper, as part of PA's application process. Other than that, you're right in that this does not seem too complicated, which is nice!

Thank you!

**radreality** · 04-28-2007 01:18 PM

I got to thinking and.....

Why do you want to remain a sole proprietor?

You are talking about getting insurance for the business; what about insurance for yourself? Forming an LLC or a corporation is probably the best thing you could do to protect your personal assets. Even with business insurance, you can still receive litigation against yourself. At least with a seperate business entity you have some sort of a vail. To form an entity you are looking at $750-$1000 in attorny fees upfront, plus around $200 for initial licensing fees, then around $60 each year to renew your license, plus about $150 for the yearly board of directors meeting with the attorny. Plus you would need to pay a little closer attention to finances to make sure that your personal and business are completely seperated. It sounds expensive, but in my opinion its the best "insurance" you could buy, expecially when you are involved in a business like yours where you are dealing with other peoples property.