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Post by felkman on Feb 7, 2012 21:42:31 GMT -4
ok let me say i like the idea, but im on the east side and its hard for me to drive a hour a way, and im a tech so im good at fixing things so fixin bikes wood be great to do in spare time , but to karl, you dont tax labor, so if any one asked , the custamor buys the part, if we just charge labor then there is not tax, no state liesens, because its a club like and were just fixing bikes, there are ways around things, state law is you cant tax labor so ,,, i like the idea but wood like it a little bit closer, and the dues, and money, me and the wife was in a railroad club and they had a yearly dues and sold pop and water , and they sold box cars at shows they went to, agin this was a model train club but they made some good money just from selling pop William, if you think there are no taxes or licenses to worry about, you are mistaken...... There are taxes on the property, if you sell a part, there is a state tax that must be collected and turned in, there is inventory tax, you even pay a local tax on the tools you use (as inventory), if you sell a can of pop, the government wants their cut. You are right, in Indiana there is no state tax collected on labor but you still have to pay an income tax.... There should be a license, even for a non profit company. They don't cost much but it would be something you should do. The attitude of, "there are ways around things" is a good way of getting your butt in trouble. Insurance is whole another thing to think about.  |
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Post by williamc89 on Feb 7, 2012 22:40:23 GMT -4
i have work in shops and been around shops all my life there are no taxs on tools, and the shop im at now has a lot cause we rebuild trans. and each tech has tools , we have a pop machine and there is not tax, and if you dont sell parts and the custumer gets there own part then there is no tax, and i kw about the property tax, thats on the owner of the building,
and by the way im reading what he wants to do is make a little group out of his building, there is not law saying he has to pay anything on his tools as invatory, i have never heard of that,
im sorry but why get all these things if ur just going to have a little club, and fix some friends bikes, i mean if he was opening a regular shop ok get the right things but thats not what he is saying,
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Post by leadkrm on Feb 7, 2012 23:41:25 GMT -4
Yea he wants a club with a little shop and what not but to pay for the building taxes and bills we would realisticly eventually need a legal way to collect money to support our club and fixing a few bikes under the table will not do. That is why I suggested simple things like making Fiberglas tanks seats ect. Tagat is kind and willing enough to grant us the land and building but the group as a whole must be able to offer products and services in a legal manner to support the club and eventually our business end will support the bills taxes and stuff and tagat will just have liability to worry about
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Post by williamc89 on Feb 7, 2012 23:51:17 GMT -4
ya i understand that , things like ur talking about karl, but u dont have to pay tax on tools or things like that, you pay tax on tools and lift when u buy it, thats what i was saying, and no tax on labor,
tagat is liability is for the land and building, to do what ur talking about someone will have to get a small business licenses,, but you still can work on bikes, and just charge labor,
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Post by leadkrm on Feb 8, 2012 0:06:40 GMT -4
Yea I couldn't be an authority on saying exactly what is taxed and what is not but insurance and property taxes alone would be in the thousands a year. And also I don't see many people using a bike shop that isn't able to get them parts. That's why people usually take their bikes in to get work on at shops is because they only want one thing. To drop it off broke and pick it up fixed. If I brought my bike out to a shop
And they said ",ok we will fix it just order the part wait for it in the mail and bring me the part and I'll stick it on the bike." I'd say nevermind
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Post by felkman on Feb 8, 2012 10:09:46 GMT -4
i have work in shops and been around shops all my life there are no taxs on tools, and the shop im at now has a lot cause we rebuild trans. and each tech has tools , we have a pop machine and there is not tax, and if you dont sell parts and the custumer gets there own part then there is no tax, and i kw about the property tax, thats on the owner of the building, and by the way im reading what he wants to do is make a little group out of his building, there is not law saying he has to pay anything on his tools as invatory, i have never heard of that, im sorry but why get all these things if ur just going to have a little club, and fix some friends bikes, i mean if he was opening a regular shop ok get the right things but thats not what he is saying, Ok William, I am not trying to start a fight here. I am just saying there are things that would have to be done and checked into. Just because you worked at a place and you didn't pay taxes on the tools or inventory doesn't mean that the owner of the company did not. I am guessing he did unless he is in on your "there are ways around things"..... How many of those places that you worked at, did you actually own? Every February in the state of Indiana you have to do inventory on the inventory you have including equipment and displays...... Ever hear of an inventory tax sale? lets just say the first time you get audited and they point out that the 5 oak antique display cases you have and the three racks for displaying vintage clothing has to be taxed, you will wise up to this stuff. Don't ask me how I know!  |
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Post by hogsausage on Feb 8, 2012 11:03:31 GMT -4
I would say before you guys jump right to a shop and club like atmosphere, find a place everyone can meet at and start meeting and working on what you have together. If things grow from there it will happen. Maybe you will relize you really don't like each other and just fight all the time. If you jump right into business with each other it will be too late!
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550fi
Junior rider
75 CB 550 F1,79 CM 400 A,72 CT 70 K1,Unknown ct 70 clone 05 GY6 scooter ,70 CT 70
Posts: 624
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Post by 550fi on Feb 8, 2012 14:43:11 GMT -4
My wife has a Masters in Accounting and may be able to shed light on how to set something up and how to get the best tax advantages.It would be nice to see more custom stuff for Honda 550s seens how you can get everything for 750s.
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Post by leadkrm on Feb 8, 2012 16:45:04 GMT -4
Yea that's what I would like to make. Custom stuff for each class or at least have a wide selection of stuff for the popular bikes and special orders would cost extra. It would be fun in my opinion. But it's far from reality ATM!
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550fi
Junior rider
75 CB 550 F1,79 CM 400 A,72 CT 70 K1,Unknown ct 70 clone 05 GY6 scooter ,70 CT 70
Posts: 624
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Post by 550fi on Feb 8, 2012 17:03:39 GMT -4
There is liability issues if you had a shop with 20 vintage bikes and a fire started or tornado or whatever youd want insurance to cover them unless your pockets are deep.I know that my homeowners doesnt cover all the bikes in my garage,they have to be plated and insured to be covered.
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Post by williamc89 on Feb 8, 2012 21:06:35 GMT -4
i agree chris, not trying to fight,
and the other thing is zoneing of land ie building, i agree there is a lot of things needed to know before doing it,
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taggat
Junior rider
Posts: 732
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Post by taggat on Feb 9, 2012 8:09:55 GMT -4
Sorry fellas, took yesterday off to work, you know what I mean haha... Wow theres a ton of interest! Thats great, Ill be looking into this further. Plus note the pole barn funding has offically been started. Bad note the wife is on the fence with the risk. Well see what happens there. 550fi your wifes education would be priceless on this subject! I like where everyone is going with this, we all know its going to have to start somewhere. Once eventually its working like a well oiled machine it could have big potential. Im ok with just repairing, restoring the members rides for the start. When we start running out of projects is when its obvious we dont have enough to do haha. Well I know what Im researching in my downtime today.  |
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550fi
Junior rider
75 CB 550 F1,79 CM 400 A,72 CT 70 K1,Unknown ct 70 clone 05 GY6 scooter ,70 CT 70
Posts: 624
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Post by 550fi on Feb 9, 2012 12:47:09 GMT -4
My wife has worked in non for profit for the past few years and knows about that stuff so maybe some kind of private club setup might be ok.On another note it must be nice to have a big pole barn.
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taggat
Junior rider
Posts: 732
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Post by taggat on Feb 9, 2012 14:13:35 GMT -4
Dont have the barn.. yet.. its in the works. Gives all of us thats interested a chance to do the neccessary research. From what Im reading a non for profit would be ideal. Take the corvette club of american for example, they collect dues for events, track rental, insurance, etc.. The club would probably have to be an official entity to do it right for tax purposes, records of dues in and bills paid. Thing is if were constantly upgrading the shop there would be no overages to be taxed on. Joe Schmoe brings a bike up and the club helps him rebuild it, he rides if it for a bit and sells it. Thats his profit not the clubs. You can offically sell 12 vehicles a year without a license as a individual. dmvanswers.com/questions/2529/How-many-vehicles-can-I-sell-a-year-before-I-have-to-get-an-auto-dealers-licenseAs far as the insurance goes... my homeowners isnt obvisiously going to be enough. It would probably be best to have the cycle insured. Checking with my agent on options here as you read. Like can you insure a bike thats not titled, etc.. |
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taggat
Junior rider
Posts: 732
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Post by taggat on Feb 9, 2012 14:26:23 GMT -4
Hey 550fi that would be awesome contributation to get that info out of your spouse.
If were just working on each others bikes and not actually charging for the repairs or labor there is nothing to be taxed because no money ever traded hands.
What do you guys think of the dues system and the purchase of the shops equipment?
What would be the best way to handle it?
If a member decides to leave the club either on his/her own behalf, are they entitled to anything the club purchased with there due money?
Would it be fair to pay them back for there investment;
Or would it be fair to say the dues paid for the equipment therefore its the clubs property.
Of course if you brought in your own tools those are yours to do as you feel with.
Some sort of stamping should be considered to avoid any unneccessary confusion.
Patches?
Do we really need to contact the 1% in the area to get approvable?
Is it really a club, social group, riding club or what?
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