Subcontracting startup questions...beware! LOL

[Peri]

I am working on starting a timber frame business, in Canada, with my husband...really, I'm just doing the admin side of things. He is working right now for a timber frame company (and will most likely become a contract employee to them soon so we can run his work through our business to start us off) so I am trying to do the majority of the set up. Trouble is...I'm doing most of it online and I find I'm logging unesscessary hours into trying to find the answers to my many many questions. I have found much help here already (and also have checked out the Contractor Exchange site wich I'm sure we'll become a member of sooner than later) so I thought I'd put my concerns out to you and if anyone has any feedback...it would be really appreciated!

Some concerns right now:

We will be a subcontracting company for the most part so I'm looking at questions to ask insurance companies to ensure we are fully covered.

Wondering how many of you paid GST (if you have this tax in your area) when you were first starting. Even though we will probably not make $30,000 our first year, we'd like to register for GST so the client doesn't know we don't make $30,000...cause that don't look too good now does it? :wink:

For Canadians: how many of you pay directly into CPP, EI etc. (for yourself not your employees). We do not want to pay into this as it would be more economical to put the money aside ourselves! But I understand these deductions to be canadian law? Do we have the choice?

How did you contractors come up with what to include in your contracts that you present to your clients? What resources did you use.

I have so many questions right now and alot of frustration because I feel like I'm running around in circles and am not getting too much accomplished in the end. In general, if any of you have any advice on where to begin when starting a contracting business and what resources are good...well, it would be more than wonderful of you to share! Thank you in advance.

[Cole]

Your Back, are you strictly looking for answers from contractors in Canada?

[Peri]

yes Cole I'm back! Infact I've been coming back here and there trying to find what I'm looking for. I don't post too often cause it's all questions right now and instead of being a pest, I like to try to find the answers myself. However, as I stated earlier, I'm putting way too much time into trying to find the answers! And it's getting very overwhelming...so I extremely appreciate your prompt reply.

I'm not looking strictly for Canadian responses, no. Anything will be of help at this point lol. Are you able to enlighten me....even a wee bit? :)

Peri

[Rich]

Here's the way I look at any type of tax. You might as well start accounting for it from the get go. Why you might ask? Let's say you do some work for a contractor at a certain price - competing contractors' price is quite a bit higher because you're not accounting for a tax or more than one tax. That's great you get in the door and you do a great job. 1 year later - you are now accounting for all taxes and fees etc.. you bid another job for that same contractor. They're wondering wtf because now your price is so much higher.
Take the additional money that you've accounted for these taxes and put aside to help pay for an accountant to give you some advice when you do get over that threshold.

I highly recommend signing up for the contractor exchange - there is currently a 30 day free trial to get your feet wet. Go the 30 days and get what you can out of it - then when you're ready to get deeper into it you can actually sign up. IMO now is the time to get the answers to some important questions that could determine how your company makes out in it's formative years. I am kind of biased though :)

[Cole]

Rich, I was like contractor exchange, :roll: and then I realized you were talking about the famous www.teamcontractor.com :D

[Peri]

I agree Rich...our plan is to charge the GST from the get go. For other reasons though. Hadn't thought about what you mentioned which is a great point thanks for that! See this is why I keep coming back to you guys :D

We will definately sign up to the Exchange. I need to get in there and have a really good look around and get to know the ins and outs of it, but it is definately going to be a priority. We are going to need a lot of help learning the ins and outs of management, so it'll be a great resource no doubt! See the trouble right now is my husband is a great timber framer, but we only know the basics for starting a company. My biggest problem right now is the contracts. Where do individuals who are starting a construction company get the info to include in contracts? Once I have the contracts than our lawyer will definately review them. I'm just having a hard time finding ones to use as a guideline.

It is my understanding that if we work for a GC than they will be providing the contracts to us and we sign them. But we will be doing our own frames as well so I need contracts drafted. HMMMMMM.

Thanks Rich!!

[giddonah]

and instead of being a pest, I like to try to find the answers myself.

I'm the resident pest here, two might put Rich over the edge. :wink:

[Rich]

LOL - yall aren't even close to being pests. You should meet the architect I'm working with on a project.

[giddonah]

Oh, I can turn it up Rich. :wink:

[Hometown Handyman]

[quote="Peri"]I agree Rich...our plan is to charge the GST from the get go.

That is what I have done as well. The nice thing abou thtat is that if the numbers work right, you could even get a refund of GST.

AHH, Canada; land of universal health care, low crime rates and the right to bare breasts. :D not arms though. Got ta' keep those sleeves on.