by Marie King
Once roofing companies start to flourish roofers want to create a business structure for these companies. There are a myriad of choices that meet your business needs. Different options can effect your personal taxes, personal liability and revenue.
Part of marketing is research. You need to find out who is out there and what mediums they’re using to sell their service. You also need to determine the advantage that you have over your competition.
Your business plan outlines what your company’s concept is and goals. It is also meant to be a marketing piece that will attract new clients and investment. Your business plan will also tell you how much funding you need, so you can get the capital you need.
Whether its brick and mortar or on the Internet, it’s important that it will attract traffic. Some roofers use old fashioned methods llike newspaper and signs on their trucks. Other roofers use social media, websites and sites like Angie’s List and Home Advisor.
Choose your business structure. It can be sole proprietor, partnership or corporation. Understand the pro’s and cons of each because it can affect your taxes, revenue and liability.
The sole proprietors of roofing companies have some positives. It allows you to have a trade name. It is also a good way to get your companies’ name out there. The downside of a sole partnership is not only are your business assets at risk, but also your personal assets. Furthermore, it’s very difficult to get financing for a sole proprietship.
Partnerships are a simple company of two or more people to design a business structure. There are two types of partnerships Limited Partnership (LP) and Limited Liability Partnership (LLP).Limited partnership have only one owner that has unlimited liability. Everyone else has limited liability.
The partners with limited liability are not responsible for the liability of other partners. The partner with unlimited control has the greatest power and must pay unemployment taxes.
A corporation functions separate from the owners’ personal assets. A corporation can make a profit, be taxed and be liable. Corporations offer the best protection from personal liability. The downside is that corporations are expensive to start and require extensive paperwork.
Other Steps for Your Roofing Companies: