Cell phone repair businesses can either be done in a cell phone store or on location.
There are advantages and disadvantages to each method of cell phone repair business, but each requires different legal and ownership structures.
Let’s say you choose cell phone store cell phone repair business over on-location cell phone repair business: the next step is to form an LLC.
Forming an LLC for cell phone repair business, like any other business or startup, requires the cell phone repair business owner to file articles of organization with the state in which he or she plans to incorporate. This is usually done through secretary of state websites and payment of a filing fee (usually around $100).
Select a State:
Yet, the first thing one needs to do is research which state provides cell phone repair businesses with the most freedom regarding taxes and regulation.
States like Wyoming or Nevada might be great places to start because they take little interest in companies that help cell phone owners fix broken screens or other issues related to cell phones.
These states also have minimal taxation policies so running an LLC for this type of small-business can be very affordable compared to other states.
Cell Phone Repaid Business Name:
Once you’ve found your new home state, the next step would be coming up with a cell phone repair business name.
It’s not necessary to copyright the cell phone repair business name, but it is a good idea since cell phones are such a large part of our lives these days and big companies like Apple and Samsung might try to sue you for unfair use of their product names.
Filing the Article of Organization:
The next step would be filing LLC articles of incorporation with your state’s Secretary of State office.
This usually costs around $100 by DIY method and can take up some time because all states require different information and forms. However, if you don’t have time to do everything by yourself you can also hire any reliable LLC service like Legalzoom or ZenBusiness to help you file Article of Organization without headeche.
Make sure your cell phone repair business is ready to go online in terms of legal status before opening its doors; otherwise, potential customers may get discouraged if they see that you haven’t completed the process yet.
Identifying the Owner:
Next, one needs to figure out who will be cell phone repair business owner, cell phone repair business manager, cell phone repair employees, cell phone repair technicians, etc.
Types of LLCs:
There are just a few different choices when it comes to cell phone repair business type LLCs you can form.
Sole proprietorship
The first is the sole proprietorship cell phone repair business. This cell phone repair business type only requires one cell phone owners’ personal information so it’s fast and easy to form. Ownership will be in your name only while management will be entirely up to you.
However, this also means that everything — good or bad — will happen under your name as well. Also, many states require all cell phones repairs businesses to pay use tax but there are ways around this like keeping receipts of cell phone repairs performed (this also helps your cell phone repair business if you need to make an insurance claim).
The general business
Another cell phone repair business type is the general cell phone repair business. This cell phone repair type requires more information about the individuals who will be cell owners, cell managers, cell employees, etc.
Ownership lies with the owners while management lies with the managers (and they must all sign LLC operating agreement). However, it’s possible for one owner to manage everything or multiple owners can share management duties.
Limited Liability Company
The last cell phone repair business type is limited liability company cell phone repair. This cell phone repair business type is usually recommended because it combines some of best features of both types above plus limits/manager liability.
Basically this means cell owners, cell managers, cell employees will have some protection from cell repair responsibilities.
However, this cell phone repair type is a little more complicated so legalzoom or cell phone repair business lawyer may be the best option to form LLC for cell phone repairs.
Cell Phone Repair Business Tax:
The next step would be settling cell phone repair business taxes with your old home state and filing taxes in your new cell phone repair business state.
Again you can use Legalzoom or cell phone repair services that provide complete company formation packages to help you file tax returns right from the beginning.
Initially it’s probably a good idea to hire a tax professional because there are a lot of things you need to consider like sales tax, income tax, employment tax, cell phone repair business property tax, cell phone repair business payroll etc.
Conclusion
Cell phone repair businesses have the potential to generate a fair amount of profit and carry a certain degree of risk. All cell phone repair business owners should consider forming an LLC if they wish for their company to be legally protected.
