Author Topic: Opening a small ATV/Bike business.....tips and advise needed. (Read 3034 times)

JoePA · « **on:** January 22, 2014, 08:53:34 AM »

The title should say REPAIR business....I want to open a shop. I've been doing this on the side for a while and would like to go legit. For those of you that do this or have some insight can you help me out? Not sure of the proper steps so i'm all legal. Also, what all is needed to become a dealer for say Tucker Rocky or any of the other part places? I know they want a store front but i'm doing this out of my garage for now and I just want to be able to get the parts directly instead of going through the local shop. Like I said I'll take any advise you guys have.

Joe

rsss396 · « **Reply #1 on:** January 22, 2014, 09:50:45 AM »

You will need at least a Tax ID for many wholesalers, others will also want a copy of a business license. you do not need a store front for a business license.

I have to believe the ATV/Bike repair business is tough to make a good living, you will be exposed to many different brands and models so it can be a constant learning curve being exposed to the different Bikes you will see day to day.

You have the option of "cherry picking" your work now that it is a side job for you but once you become full time you will at times have to take on work you may not be comfortable with just to keep yourself busy and those can sometimes be nightmares.

people will want you to look at their bikes and give them a price before you begin work but once you start tearing into it you may find loads of other worn parts that they will not want to pay for, and when you slap it back together with these same parts and it fails it will be your fault in their eyes.

Not to be a downer but I would use your skills and find a good job, and keep the ATV repairs as a side job for people you know.

JoePA · « **Reply #2 on:** January 22, 2014, 10:13:45 AM »

Thats what I do now and this is only going to be something on the side. I want to go legal so I can write off all the tools and equipment I purchase. As far as different models....I'm not concerened to much about that as I've done a fair share of whats out there now so not much more would surprise me.

So a business license and a Tax ID. I'll work on those.

rablack21 · « **Reply #3 on:** January 22, 2014, 10:38:18 AM »

Quote from: JoePA;23030

Thats what I do now and this is only going to be something on the side. I want to go legal so I can write off all the tools and equipment I purchase. As far as different models....I'm not concerened to much about that as I've done a fair share of whats out there now so not much more would surprise me.

So a business license and a Tax ID. I'll work on those.

If that is your intention, I'm not sure you even need a business license. There is a form you can use on your taxes at the end of the year to basically say that you did some "independent work" and you can write off tools and expenses towards that. I believe they treat it like a 1099-misc category.

I know my father in law does not have a business license, but has been doing dozer work for customers for years. He reports his earnings at the end of the years and writes off his expenses, and that's it. He doesn't have a store front or a business name.

However, Dave brings up a good point. I know from experience that other companies won't mess with you or let you become a dealer of their products without having a business license at the very least. And last time I checked, you don't have to have a tax id number unless your are selling $5k worth or more of product a year. So, if you are wanting to make money on parts, you would be best to get a local business license. They aren't that expensive in most cases. What you may run into though is the possibility of them not issuing a license because you house is not zoned for it. Just some things for you to check on.

rsss396 · « **Reply #4 on:** January 22, 2014, 12:36:30 PM »

I use to be a electrical contractor and most wholesalers ask for a tax ID that I have seen, even CP industries and Millennium Coatings asked for a Tax ID

It shows them that you are not just trying to get a discount on there product and are truly part of the industry.

Tax ID's are free from the IRS online and you can get it right away, you do not have to be a corporation or LLC to get one

try checking first if a business license is needed for certain wholesalers, if not needed then no reason to waste money on it

motofool250r · « **Reply #5 on:** January 22, 2014, 01:51:09 PM »

Tax ID is cheap, but what you need to do to cover your ass is Insurance.

getting an account at Tucker rocky and those places a lot of them ask for a picture of your store front, and a minimum order of say 1500-10k in parts depending on the business.

When i was young i did this with cars/parts, nowadays you need to create an LLC(protects your personal items House, cars, saving, retirement from suits), Get insurance to cover suits so one accident doesn't take down the whole house.

JR250R · « **Reply #6 on:** January 22, 2014, 03:05:36 PM »

I have always thought of doing this as a side job also. I'd like to buy cheap quads and sell, plus sell parts. Where I'm at there are no small shops so I think something like that would do well. We have 3-4 major dealerships and it makes me sick seeing there labor rates and used quad prices. Most only sell new stuff anymore it's a joke.

rk88r · « **Reply #7 on:** January 22, 2014, 06:25:39 PM »

Definitely do the llc to protect yourself. When I got mine about ten years ago it cost about $500 to have a lawyer do it. Legal zoom or something like it would be cheaper. The state will charge you something to register your business name as well. Doing insured damage repairs might be consistently profitable if you are ready for the extra paperwork.

bnau267 · « **Reply #8 on:** January 22, 2014, 07:30:45 PM »

Quote from: motofool250r;23062

Tax ID is cheap, but what you need to do to cover your ass is Insurance.

getting an account at Tucker rocky and those places a lot of them ask for a picture of your store front, and a minimum order of say 1500-10k in parts depending on the business.

When i was young i did this with cars/parts, nowadays you need to create an LLC(protects your personal items House, cars, saving, retirement from suits), Get insurance to cover suits so one accident doesn't take down the whole house.

Second this advice....you don't want one mishap to cost you everything.

ccaiazza · « **Reply #9 on:** January 22, 2014, 10:30:04 PM »

What about a DBA. Then you can use your ss number as a tax ID. And register with your county!

JoePA · « **Reply #10 on:** January 23, 2014, 11:35:47 AM »

great stuff guys and thanks. Yeah lots to think about. Might be cheaper to just do it on the side. I have to go talk to the lady that does my taxes and see what she says about just writing it off as a hobby that I'm attempting to make money at. From what I read it raisies a flag to possibly be audited but who knows. Also going to look into the LLC and insurance. Maybe just open a small store front and sell gear etc and do the engine work on the side....who knows! I need the extra cash to fund the race adiction and use the stuff I purchase for racing as a write off as well!! LOL

1986quadracer · « **Reply #11 on:** January 23, 2014, 12:11:08 PM »

The local atv - snowmobile club was is excellent start. Loads of work and knowledgeable people. One of the biggest things is stocking parts. Everyone wants their stuff fixed yesterday so having about a million carbie kits might be handy.

motofool250r · « **Reply #12 on:** January 25, 2014, 10:19:33 AM »

Quote from: JoePA;23156

great stuff guys and thanks. Yeah lots to think about. Might be cheaper to just do it on the side. I have to go talk to the lady that does my taxes and see what she says about just writing it off as a hobby that I'm attempting to make money at. From what I read it raisies a flag to possibly be audited but who knows. Also going to look into the LLC and insurance. Maybe just open a small store front and sell gear etc and do the engine work on the side....who knows! I need the extra cash to fund the race adiction and use the stuff I purchase for racing as a write off as well!! LOL

just so you know even if your doing it on the side not as a business you still are wide open for a lawsuit which they could take your personal items, example

you worked on the bike, accident happened serious injury, somehow they tie it back to work you did in court. and now you are liable for medical expenses related to the accident.

this is what spending the small money on an LLC and some insurance can help prevent.

this being said i didn't have one in place when i was younger doing similar activities, because i had no idea how this all worked. but just want people to know what this world can bring down on the little guy unfortunately.

release of liability waivers can help if you dont want to do an LLC and such but not as good as an LLC which seperates your personal items and your business related things.