Quik Posted December 17, 2007 Report Share Posted December 17, 2007 Im an electrician by trade. Im tired of working for Joe Smoe and his BS company. Ive worked for larger companys and factorys over the years. As of lately im getting punished constantly cause of my driving record for what i did years ago. Cause of that companys give a hard time to hire me or if they do their insurance finds out and then i become unemployed. it was a reckless. Im good at what i do, i have the tools to do the job but theres a few things i would like a loan to help get started. Truck, advertising and clintel..... My question is has anyone delt with small buisness loans and who do you go about it, what is needed and etc. To start what im starting i dont htink there would be much involved but thats why im asking thanks and appreicated the future answers Quote Link to comment Share on other sites More sharing options...
usabodyguard Posted December 18, 2007 Report Share Posted December 18, 2007 you have to do he following - 1 - get a fictitious business name - "Quik Electrical" for example - file this with the county you live in. 2 - publish this name for 4 weeks in a local paper... county will tell you what papers do this. 3 - Obtain a business license from the CITY you live in... get this at the city affairs office 4 - Open a business account at your bank 5 - get your electrical contractors license - this is the biggest step, along with insurance to go with it, in case you toss a few to many beers back one night and cross some wires the next day and burn down a house...LOL the above makes you legal... you may have additional requirements in the state you live in... but that is usually the process... the next thing you need to do is contact everyone you know, friends, family, former colleagues, etc and let them know you are doing freelance electrical work... also contact as many general contractors as possible... as far as business loans, initially it goes according to your personal credit history... hope this helps bro... Dave Quote Link to comment Share on other sites More sharing options...
tonyrome Posted December 18, 2007 Report Share Posted December 18, 2007 all that was good info from usabodyguard i would also check with the sba they got good loan programs but it will go with your pesonal credit if your a vet by any chance u could get up to 500k from sba so get all your paperwork together and check them out Quote Link to comment Share on other sites More sharing options...
Quik Posted December 18, 2007 Author Report Share Posted December 18, 2007 thanks bodyguard. i didnt realize how much was so involved im glad i asked. i had planned on the insurance thats a given. i guess i need to look into the licenses and etc. just worried about the customers and how many will i get to keep busy Quote Link to comment Share on other sites More sharing options...
chpspecial Posted December 18, 2007 Report Share Posted December 18, 2007 (edited) you have to do he following - 1 - get a fictitious business name - "Quik Electrical" for example - file this with the county you live in. 2 - publish this name for 4 weeks in a local paper... county will tell you what papers do this. 3 - Obtain a business license from the CITY you live in... get this at the city affairs office 4 - Open a business account at your bank 5 - get your electrical contractors license - this is the biggest step, along with insurance to go with it, in case you toss a few to many beers back one night and cross some wires the next day and burn down a house...LOL the above makes you legal... you may have additional requirements in the state you live in... but that is usually the process... the next thing you need to do is contact everyone you know, friends, family, former colleagues, etc and let them know you are doing freelance electrical work... also contact as many general contractors as possible... as far as business loans, initially it goes according to your personal credit history... hope this helps bro... Dave I don't know about your state, but here in cali, you also need a contractors bond. usually about 250/2yr term, sometimes less. Workers comp if you have employees, and most people or businesses require some type of liability insurance... they usualy state the minimum amount. I know that I have to carry a $1,000,000 liability insurance at all times. Edited December 18, 2007 by chpspecial (see edit history) Quote Link to comment Share on other sites More sharing options...
drclaw5 Posted December 18, 2007 Report Share Posted December 18, 2007 all of the above is great info but you if your gonna go into a bank to try and get a loan you need to makeup a good business plan, that will help out a lot! good luck! Quote Link to comment Share on other sites More sharing options...
chpspecial Posted December 18, 2007 Report Share Posted December 18, 2007 Another thing that I forgot to mention... Get your business started and open your business accounts at a bank. Upon opening your business accounts, your bank will most likely offer you a business CC. Get it. It's limit will be about twice the amount of a personal CC. After a short while, the banks will come to you with business loans. That is what happend to me. I have not needed a business loan, but I can now just go to my bank, say give me money, and they will open a business loan on the spot. I can't get my bank off me about the damn business loans now. Quote Link to comment Share on other sites More sharing options...
nuzman Posted December 18, 2007 Report Share Posted December 18, 2007 Something else to consider, forming a business entity. This is in addition to getting yourself licensed and bonded. Depending on the state, you would be wise to form yourself an LLC or Inc. Two main reasons: 1. a business entity allows more freedom to handle the tax consequences of your business, both loss and profit, and 2) limits your personal liability in case something goes wrong on the job. You need to check with your CPA first. Usually, an LLC is the way to go but some states, like Texas, have a franchise tax that sometimes makes Inc.s a better choice for small businesses. Also, some states have laws for professional entities like PLLC's (Professional Limited Liability Company) that are used by contractors, doctors, lawyers, etc. They usually offer particular liability limits and require a certain number of members to be profesionally licensed in the given trade. Contact the Secretary of State's office in your state and they can usually provide the necessary forms for free. Most SOS's have great websites that can answer a lot of your questions. The SBA is the way to go for low interest small business loans. Additonally, depending on the laws in your state and the country of your ancestors, you may qualify as a minority owned or disadvantaged business that opens up grants and other loan options. It can also get you qualified to work on government projects that can pay very well. Don't be afraid to talk with a CPA and a business lawyer. A little advanced planning can go a long way. As far as the business account at your local bank, remember, never EVER co-mingle your business assets with your personal assets. Your checking account is for groceries, truck parts and taking chicks out to dinner. Your business account is strictly for payroll, supplies, equipment rental etc. Don't get them mixed up. Just my .02. Quote Link to comment Share on other sites More sharing options...
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