Smart Business for Contractors : A Guide to Money and the Law

by KRAMON, JIM

• ISBN13: 9781561588930
• ISBN10: 1561588938
• Edition: Revised
• Format: Trade Paper
• Copyright: 2007-01-09
• Publisher: Taunton

Summary

A veteran contractor's attorney walks his readers through details big and small that make the difference between contractors who have more work than they can do yet barely make ends meet and contractors who work at a manageable pace, kep up-to-date records, and turn a profit job after job, year after year. Covering the spectrum of a contractor's career, SMART BUSINESS FOR CONTRACTORS includes new detailed information on what a cxontractor can expect in his first year in business and updated information on tools every contractor needs to plan intelligently for retirement (yes, a contractor needs to begin planning for retirement during his first year in the business!). Also included in this revision is instruction on how to price jobs accurately, draft successful contracts, bill clients and collect payments, optimize every possible tax deduction available to contractors, including the applicable deduction for a home offie. There is also timely information on flex-spending plans, record-keeping, and partnership and corporation options all geared toward increasing a contractor's efficiency and profitability.

Author Biography

Jim Kramon is a founder of Kramon & Graham, a 30-person law firm in Baltimore, Maryland. Jim and his firm have represented small contractors and tradespeople for over 30 years.

Table of Contents

Introduction	2	(2)
Money Matters: Pricing, Billing, Collecting	4	(24)
How to Price Your Work	5	(1)
Using the Hourly Rate Approach	6	(11)
Keeping Track of Expenses	17	(1)
Billing and Collecting Payments for Your Work	18	(10)
Contracts and Beyond: Protecting Your Business	28	(22)
Estimates and Contracts	28	(11)
Following Through after the Contract	39	(3)
Contract Disputes	42	(8)
Running and Growing Your Business	50	(24)
Setting Up Your Office	51	(3)
Working Smart	54	(12)
Getting Help	66	(2)
Growing Your Business	68	(6)
Managing the Paper Chase	74	(16)
Getting Motivated	74	(1)
What Is a Record?	75	(4)
What Records to Keep and How to Keep Them	79	(2)
Keeping Your Records Organized	81	(4)
When It's Time to Use the Records	85	(3)
Getting Help with Record Keeping	88	(2)
Drawing the Line: Business vs. Personal Finances	90	(13)
Legal Reasons for Separating Business and Personal Finances	91	(4)
Good-Sense Reasons for Separating Business and Personal Finances	95	(4)
Methods for Separating Business and Personal Finances	99	(4)
Sizing Up Your Options: Corporations, Partnerships, Employees	103	(20)
Look to the Future First	104	(1)
Should I Incorporate?	105	(7)
Business Expansion: Employees, Job Sharing, Subcontractors	112	(4)
Taking on a Partner	116	(4)
Hiring a Lawyer	120	(3)
Taxes: Plain and Simple	123	(18)
Tax Estimating and Reporting Requirements	125	(5)
For the Do-it-Yourselfers	130	(1)
Tax-Related Issues for Contractors	131	(5)
Selecting the Right Accountant	136	(5)
Insurance: Money Well Spent	141	(19)
Types of Insurance	142	(2)
Insurance to Protect Your Business	144	(3)
Business Vehicle Coverage	147	(5)
Insurance for Employees	152	(3)
Including Insurance Costs in Your Prices	155	(1)
Filing Claims	155	(1)
Working with an Agent or Broker	156	(4)
Medical Insurance: How to Live with It	160	(22)
Basic Medical Coverage	162	(1)
Group Medical Coverage	163	(4)
Types of Medical Insurance Plans	167	(3)
Selecting the Right Medical Insurance	170	(5)
Medical Insurance and Taxes	175	(1)
Making the Best Use of Your Health Care Coverage	176	(6)
Disability: Anticipating the Solution	182	(16)
Disability: A Clear and Present Danger	183	(1)
Disability Insurance	183	(9)
Other Solutions for Dealing with Disability	192	(6)
Retirement Planning: Never Too Early	198	(21)
Getting Started	198	(1)
Defining Your Objectives	199	(2)
Estimating Your Future Expenses	201	(1)
Retirement Income: Putting Together the Pieces	202	(12)
Balancing Income with Expenses	214	(1)
Medical Care during Retirement	215	(2)
Retirement and Estate Planning	217	(2)
Your First Year in Business	219	(13)
Meet the Adams Family	220	(1)
Taking the Plunge	220	(3)
The First Jobs	223	(1)
Proactive Preparation	224	(2)
Income Taxes	226	(1)
Anticipate the Unpredictable	227	(4)
Last Bit of Advice	231	(1)
Glossary	232	(2)
Index	234