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  1. #1
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    Working for a company under your business EIN

    So I'm in school for HVAC/R and I just finished my first semester. I havent gotten my certifications yet, but my plan is, once I get them, to work for a company for a few years and then start branching off on my own. But I was recently told that I can apply for my EIN and business documents (whatever they may be), and work for a company under my business and "pay myself" like that. Is there anyone that knows anything about this process? Any insight?

  2. #2
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    Well, you could do that, if any company in your area will allow it. I doubt many companies would be interested in doing what your thinking. Since down the road, you would be their competition. And have a list of their customers.

    Of course, you then become the first one not called when work is slow. And if anything goes wrong on a call your on. Its your liability insurance that pays out. Plus, they don't have to pay you for any call backs that you have. And if you do an install, and there is a warranty call, you do that for free, since you would be warranting your own work. So you could end up doing a lot of work for free, since you wouldn't be an employee of that company.

    Next, you should also take an accounting course, so you understand about putting money back to pay your taxes.

    You also need to get real good health insurance, and supplemental income insurance, since you won't be covered by workmen's comp, cause your not an employee.
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  3. #3
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    Mar 2016
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    Dayton Oh
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    It sounds like what your talking about is being a sub contractor for another company. There are a few companies in town that do what you describe when thy get supper busy. Hire a small 1-2 guy company to do their install work when they cant keep up.

    Will say though not a lot of company's do that. They dont get as much control over the sub as they do with their employee's. And if the sub does a crap job, its still the companies reputation on the line.

    Not that im doubting your ability in this trade, but it takes many a years to be fully comfortable being in a van by yourself with no one to rely on for help. So jumping right out of school into a self employed sub contractor could be very straining. The nice thing about working for someone else for 5 some years, is there is always someone to fall back onto for help.

    after 12 years in this field there are still things that make me scratch my head.

  4. #4
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    Quote Originally Posted by Twani13 View Post
    So I'm in school for HVAC/R and I just finished my first semester. I havent gotten my certifications yet, but my plan is, once I get them, to work for a company for a few years and then start branching off on my own. But I was recently told that I can apply for my EIN and business documents (whatever they may be), and work for a company under my business and "pay myself" like that. Is there anyone that knows anything about this process? Any insight?
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    Last edited by pecmsg; 11-06-2018 at 09:13 AM.

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  6. #5
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    EIN ( Employer Identification Number ) like a SS number for a corporation. If the business is a sole proprietor then only a SS number is used.
    If your a subcontractor you're required to fill out a W-9 form by whoever uses your services.
    Times two on the UA.

  7. #6
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    Mar 2004
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    You will need lots of experience...don't think you are going to be Zorro solving all sorts of mechanical issues when you get out of school.
    Employers like experienced techs, and that experience comes with time in the trade. That "time" will make you familiar with various equipment, diagnostic techniques, and establish you as a competent technician.

    There are no shortcuts!!!

    It took me 10 years of full time in commercial/residential before I felt confident to go on my own and start my business. This is after getting my 2 year degree in Environmental Systems Technology...which only made me an educated helper.

    Experience makes you a Technician...and later, a business owner...if thats what you want.

    After 10 years, I got my state license, started an S Corporation, bought a company work truck, liability insurance, and advertised. Took about 7 years to build a client base where I no longer need to advertise. Now its all word of mouth.

    Thats 19 years of my life right here just to get the ball rolling for my own business...been doing HVAC for 28 years.
    “Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.”

  8. #7
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    Hes going to the GURU School of HVAC/r

  9. #8
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    Quote Originally Posted by pecmsg View Post
    Hes going to the GURU School of HVAC/r
    He'll he can get that right here for free

  10. #9
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    Nobody can afford that....for what he would think he should charge and for all the time you would never get back.
    Quote Originally Posted by pecmsg View Post
    Hes going to the GURU School of HVAC/r
    Sent from my SM-N910W8 using Tapatalk

  11. #10
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    I'm curious.... what gave you the idea that this would be a good approach to take....?
    [Avatar photo from a Florida training accident. Everyone walked away.]
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  12. #11
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    Oct 2018
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    Whoa. This is heavy.
    Thanks for this information.

  13. #12
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    Nov 2018
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    Most details have been laid out, but here's a simple summary of contracting / subcontracting in general. In all industries being a contractor / subcontractor can have advantages and disadvantages. Usually less stability, higher risk, higher profit (pay), if you can find work consistently and continuously.

  14. #13
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    In my State, work requiring a contractors license can be performed by a licensed contractor or an employee of a licensed contractor. If someone is hired as a sub-contractor, then that person must also be a licensed contractor.

    So, your plan wouldn't work here lawfully.

    Also, I believe that nation wide, the IRS has rules that state in order to be considered a W-9 type sub contractor and not an employee, the person must have the authority to decide for themself how work is performed.

    This is to prevent companies from avoiding required employee benefits by claiming workers are sub-contractor.

    I could be wrong, but it is something to look into.
    It's an upside down world we live in.

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