Before you start a painting business in Colorado you have to familiarize yourself with the state codes and regulations regarding this type of business. This will include learning what licenses you will need to have.
You are also going to need to find out everything you can about the equipment that is available for you to use. Locate your suppliers, and arrange for all of your needs such as paints, tools and necessities to be readily available.
It will be beneficial to read a lot of paint sprayer review articles and blogs so you can find the equipment that is best suited for the type of painting you do. Educating yourself on these things first will ensure that you get equipment that works properly and is long lasting and durable.
Table of Contents
Register Your Business Name
Before you can start a painting business in Colorado you have to resister with your local city authorities as a contractor for hire. You will need to establish a business name and get your tax identification number. You cannot pay your taxes or hire employees until you have these things taken care of.
Liability Insurance and Getting Bonded
You are going to be working at the homes and businesses of other people so you will need to have some liability insurance coverage. You need to get bonded also. When you get bonded then your employer will be protected if you damage something at their home while you are in the process of working. The liability insurance will cover your employees in case someone gets hurt while they are on the job, and cover property replacement and repair cost too.
Taxes and Consultants
You need a tax consultant to help you discern what taxes you will need to pay and when you pay them. Most businesses do not get to wait and have the once a year tax filing like the average citizen has. Businesses pay their taxes quarterly, or every three months. Your tax consultant can advice you on the best ways to file, when to file, what kind of deductions you can take for equipment, operation cost, and all of those intricate details.
With employees there are numerous forms and types of paperwork that you must file and keep updated. You have to hold taxes and social security out of their checks, and you have to make sure that your records are complete and up to date at all times.
Financial Arrangements
You will have to create a bank account to handle the payments that people make to you and to use to buy materials and pay employees and job-related expenses. This account should be separate from your personal banking account. When you establish the account, you should also make someone else able to sign for checks and make decisions. If anything were to happen to you then there will be someone in place and ready to handle any financial decisions and payments that cannot wait until you are better.
Contact Information
You need to establish a phone that will be used primarily for customer contact, and business purposes. Employees will have to be able to get in touch with you, and your suppliers will need good contact information so they can reach you when they have questions, or deliveries.
Getting Organized and Making a List
One of the best things you can do prior to opening your business is to make a list of all of the tools that you own. Take a picture or write down the serial numbers of your paint sprayers and air compressors. Your painting equipment is going to be the backbone of your business so you want to keep accurate records in case of theft, or in case you need to get the items repaired or order accessories for them.
Make a list of all of your suppliers and what products you purchase from them. This will make it easy when you bid a job to check prices and determine the exact cost of the supplies you are going to need. It also helps you order supplies, and when your business gets big enough that you have someone working in the office who handles orders and acquisitions for you there will be a list of proper suppliers to do business with.
You need a file cabinet and you need to get a receipt for everything. If you buy $20 worth of gas to go out and do job bids then you need to get a receipt for the gas and log the purchase and mileage in a log book to use when it is time to file your taxes. Many contractors find it easier to get a gas credit card and buy only gas for work related travel with that card. Then they have detailed purchase receipts. They still have to write down their mileage and keep a record of how far they had to drive for each job.
Final Thoughts
Being your own boss and owning your own business is a rewarding and fulfilling goal. Some people think that life will be easier when they start their own business and then they are disappointed when they discover that they work longer hours and sometimes for less pay than what they give their employees.
With the will to keep going you will be able to start your own painting business and make a success of it. Just never give up, and remember that the only people who are not making any mistakes are the people who are not doing anything.
