Advice needed for a starting computer "business"

[Thomas:barth (Mt.Rushmore)]

Dear linus, crew, and community,

 

I have "accidentally" created an under-the-counter computer building business. I noticed that there was a complete lack of people who build computers in my area, so I put a post on Facebook stating that I build computers.now I have several people asking me to build computers within their price range. I honestly was not expecting a response like this. while I have some experience in computers, I would not considered myself a master, and I have no experience in the business end of things. Unfortunately, It seems the be the only person willing to help these people within the next 200 miles.  I don't know where to start or how to organize such an operation. So, I ask you for advice on how to operate a small business in order to provide for the needs in my area.

[DVA]

2 minutes ago, Thomas:barth (Mt.Rushmore) said:

Dear linus, crew, and community,

 

I have "accidentally" created an under-the-counter computer building business. I noticed that there was a complete lack of people who build computers in my area, so I put a post on Facebook stating that I build computers.now I have several people asking me to build computers within their price range. I honestly was not expecting a response like this. while I have some experience in computers, I would not considered myself a master, and I have no experience in the business end of things. Unfortunately, It seems the be the only person willing to help these people within the next 200 miles.  I don't know where to start or how to organize such an operation. So, I ask you for advice on how to operate a small business in order to provide for the needs in my area.

Depends on if you're doing it as a legitimate business or not. For that you'll be needing things like licenses for business, have to meet government regulation and so on. 

 

If you make it clear to your customers that you are more of a hobbyist doing it for some money than you should be safe there?

 

If you're talking just business than you'll have to remember the basics before you move on to bigger things.

 

Operating Hours

If they can contact you outside of those hours, then what hours are their options

Do you back-up your work or are they left to fix it themselves

A timeline, people NEED a timeline if they're going to trust you with their money. 

CONTACT INFORMATION

Costs vs Profits

 

 

There's a lot to think about here depending on what angle you approach this from. 

[Dedayog]

6 minutes ago, Thomas:barth (Mt.Rushmore) said:

Dear linus, crew, and community,

 

I have "accidentally" created an under-the-counter computer building business. I noticed that there was a complete lack of people who build computers in my area, so I put a post on Facebook stating that I build computers.now I have several people asking me to build computers within their price range. I honestly was not expecting a response like this. while I have some experience in computers, I would not considered myself a master, and I have no experience in the business end of things. Unfortunately, It seems the be the only person willing to help these people within the next 200 miles.  I don't know where to start or how to organize such an operation. So, I ask you for advice on how to operate a small business in order to provide for the needs in my area.

Spend an hour or two with a CPA who specializes in something like that, or a Tax Attorney.  Going legit isn't something you want to fuck up, as penalties and fines for not reporting income to the IRS (for example) can hurt later.  There are a myriad of things touched on above, but registering an LLC or INC or SP, how to collect sales tax and pay it, how to issue 1099's to customers, how to file taxes, etc.

 

DO NOT take anyone's "word for it" unless they are infact giving you above board legal advice.

 

That means DO NOT take what I just wrote as gospel or fact either. I am a Controller for a company and I still consult our Tax Consultants and Real Estate Tax Consultants just to make sure at times.

 

Good luck to you!

[YaBoiWill]

It kind of depends what country you are in. Here in the UK, if you earn over £11,000 a year you have to declare it, otherwise you don't. 

I think spend a good few days researching laws and stuff for you country and any other laws that apply in your area regarding companies, asset management, profits etc. 

start to compile a list of t&c's for customers, like hours, returns policy, warranty policies etc, timelines, payments

 

[Tristerin]

22 minutes ago, Thomas:barth (Mt.Rushmore) said:

Dear linus, crew, and community,

 

I have "accidentally" created an under-the-counter computer building business. I noticed that there was a complete lack of people who build computers in my area, so I put a post on Facebook stating that I build computers.now I have several people asking me to build computers within their price range. I honestly was not expecting a response like this. while I have some experience in computers, I would not considered myself a master, and I have no experience in the business end of things. Unfortunately, It seems the be the only person willing to help these people within the next 200 miles.  I don't know where to start or how to organize such an operation. So, I ask you for advice on how to operate a small business in order to provide for the needs in my area.

Im a small business owner.  I recommend at least $5000 startup capital for licensing, advertisement, purchasing power for your first rigs and insurance.  I recommend you utilize the services of a lawyer for any business agreements you come up with if you have partners, or any documents you have your customers sign.  Costs around $700 in the Midwest to get a couple documents from a legit lawyer, that should hold up should you ever find yourself in court.

 

Or, just do it as a side business, admit to people it is a hobby and ensure their expectations will either be a fixed item or you give it back unfixed at no cost so recourse never comes your way.  Or if its building only you want, than work within their budget - apparently they don't know sh*t either so wont know the difference between X and Y part, to ensure some of that money lands in your pocket.

[derr12]

my side gigs usually involve buying parts on sale and charging the person for just my labor.  I provide receipts from retailers so they know i'm on the level.  Also advise them that if anything breaks, ill fix it for my hourly wage and deal with RMA's for them but there is no warentee implied or otherwise from me.  i usually only build a few PC's a year for acquaintances.

[Canada EH]

2 hours ago, Thomas:barth (Mt.Rushmore) said:

under-the-counter

tax fraud is illegal

[Tog Driver]

1 hour ago, Canada EH said:

tax fraud is illegal

"It's only illegal if you get cought"

[Canada EH]

2 hours ago, TheClueLessMajority said:

"It's only illegal if you get cought"

Cardboard prison for you as you hear the cold hard clang behind you and Bubba introduces himself and says you got top bunk.

[Donut417]

6 hours ago, Thomas:barth (Mt.Rushmore) said:

Dear linus, crew, and community,

 

I have "accidentally" created an under-the-counter computer building business. I noticed that there was a complete lack of people who build computers in my area, so I put a post on Facebook stating that I build computers.now I have several people asking me to build computers within their price range. I honestly was not expecting a response like this. while I have some experience in computers, I would not considered myself a master, and I have no experience in the business end of things. Unfortunately, It seems the be the only person willing to help these people within the next 200 miles.  I don't know where to start or how to organize such an operation. So, I ask you for advice on how to operate a small business in order to provide for the needs in my area.

If going legit. LLC or INC is your best bet. You want to keep your private assets away from your business assets. Like others have said, you need to talk to some one who knows how to "start a business" like an accountant or attorney. Keep in mind the at least in the US the IRS kinda pisses on small business owners. You have to collect your own "taxes" like FICA, Income tax and etc. You may also need to contact your local government to see about zoning. Because you might not be able to run a business out of your home, based on how your land is zoned. 

 

 

[Canada EH]

It is easy to incorporate a business, will cost a measly $150 and take a few days for the name search to finish. Getting the taxes setup is easy. Then go to city hall and talk to them to get the business licenses.

 

Now the hard part, is filing the taxes on time. The government can freeze your accounts anytime if you dont do anything! That left me in a jam one time, but it took a lot of ignoring for that to happen.

 

And no matter where you live, government always shits on minnows because minnows dont fight back.

 

[Guest]

If you build less than 10 PCs a month is say don’t worry about it and just stay a hobbyist. You can claim the revenue. It’s not illegal to sell stuff on eBay so it shouldn’t be illegal to build a few PCs. 

 

Unless you get so many customers that you can live comfortably by only building pcs, don’t worry about it & just claim the revenue on tax forms without hiring business dudes. 

 

If you need to hire people, talk to a lawyer for small businesses. (Get a mean one that has horrible people skills. It means he’s good.) 

[Canada EH]

under the table means you arent paying taxes

[DrewPDFD]

I own my own small business for computer repairs and technology consultation. I started a LLC (Limited Liability Company) to cover me on the basic things. I use Quickbooks to track everything I spend/make in case anything arises. Your results may vary based on country/state.