What steps am I missing?

[Tri-Thunder]

I'm close to getting things ready for my startup business that I want to roll out in Spring of 2010. Here's my checklist. I have a few questions at the bottom, but can you guys review and give some advice?

1. Free consult with local lawyer. Discussing LLC vs SP. I'm leaning SP with her assistance in creating an air tight, rental/waiver form.

2. Register business name with state and any other legal entities. Things like DBA, getting the tax id, etc...

3. At the same time, create and register a website. (Questions below on this)

4. Purchase inventory/material if needed.

5. Produce advertising and start sending out fliers.

6. Press announcement to local newspaper.

So, my business is renting out a garage sale kit. (5-tables, 1-retail clothes rack, 4-garage sale signs, 400 pre-priced stickers, a sales tracking form & a successful sales tips booklet) The base price is $75 for a kit, customer can add tables and clothes racks at $5 each. Free drop off and pick up of kit. Deliveries will be Sunday evenings and pickup would be a week later. One week rentals so they have time for setup and tear down. I would also offer for an additional fee for dontation of up to 3 boxes of items that didn't sell to a non-profit and mail the receipt back out to them. $25.00 for that service. (They could then actually write off the entire cost of the sale if they wanted since the value of the donations is subjective up to $500 I believe)

I'll meet with lawyer for free consult and see if a rental/waiver would cover me sometime after Thanksgiving.

In Jan, I'd register the business name and create a website where I can post pics and details of business. I'd like to have a business email address and keep it as cheap as possible. Any ideas? Billing would be either check/cash at delivery or an invoice can be emailed with directions to pay into a paypal account. (They can then have the option of paying via credit card.)

I'm on the lookout for tables now. If I purchase now before the business is created, can I still write them off as a business expense? I'm thinking maybe 30 banquet tables so I can have at least 5 kits with 5 more for any add-ons. I'm targeting churches/VFW's, etc that might be updating their older tables to the blow molded ones and looking for discounts. Clothes racks are available locally at a store fixtures outlet.

In March, get the advertising going and get the word out. It's a small, part time business that might bring in a couple grand this next summer. Anyway, I'm looking for cheapest website with email, maybe biz cards, I'll use a business facebook / craigslist as well. Any other ideas or advice?

Thanks,
Jim.

[ZingerIntl]

Hey Jim... I want to help you by bringing all the risk out of this business. Do not go to a lawyer and set up an expensive entity. This is not a business that you will be getting sued over. At least not right away. Do not even buy the stuff. Find a place you can rent it, "repackage" (meaning market it for a different use) when someone calls and orders your package, go rent it and deliver, and this way you can see if anyone even wants to use your services. Email addresses are free. Craiglist is your new bestfriend (also free) and if people decide that renting stuff off you for $75 to sell $150 worth of "junk" is not a good deal, than you move on to the next idea. If it takes off, you then start buying equipment, forming entities with profits from the business. This way you have nothing but time at risk. Good luck.

p.s. a good lawyer should tell you the same. My last lawyer was interested in my new business and billed me for the entire session of BULLSHITTING with each other. Dont trust them til they prove themselves. I generally trust everyone to do the right thing, until they prove otherwise, but I am Canadian, so what do you expect.

[Tri-Thunder]

Thanks Zinger.... I've run a few rentals off the books on craigslist this past summer to see if it was an idea that would work. It does and I had customers who liked the hassle free aspect of the sales. I should mention that $75.00 was a pie in the sky amount. I believe that $50 for a kit will be more realistic. Also, I've been in contact with some churches to work out deals for tables. (volunteer time for tables, free rentals, etc). If I could get this whole thing going for $300 or so, I could sell the 20-30 tables on craigslist and still make a profit if I decided to walk.
I agree that an LLC isn't necessary, and I might even be able to find a waiver or rental form online waives any legal recourse. Who knows. I could still keep running this off the books, but I'd rather not get caught and would like to market it and run it like a real business.
I would market this to realitors as they have clients who need to de-clutter in a hurry, who are being forced to move, relocate because of jobs, etc... Not just grandma who wants to sell her cookie jar or canning supplies. There are many sales that take in more than $1k. Each house/town home is a potential client. I also want to take the risk out like you mentioned... thanks again for the advice.
Jim.

[ZingerIntl]

Cool. Good work and good luck. Go get an LLC from legalzoom.com. Like $149 or something. Simple and cheap.

[DomainJr.com]

Other considerations for your business.....

1. Although this business is low risk for legal issues, there are other benefits to a business such as writing off expenses for buying tables and other material, but also the gas it costs to deliver the tables to garage sale and any other direct business expenses.

2. When you register the domain name you should also get unlimited free email accounts. If you don't let me know I can point you to services that support all this. Don't pay more than you have to here.

3. I can see how money can be made for big garage sales (churches, schools, etc..) however how much money does a "mom and pop" neighborhood garage sale make....my gut check makes me think your cost would be high for these low profit operations

4. You definitely don't need a lawyer to start your business. As suggested try legalzoom.com, but do keep in mind that some states charge an annual cost to stay in business...In Florida we pay $100. Also, this is a business so you'll need to file taxes and keep books so consider how you will address this.

Just a few things to think about