rollingtach Posted November 23, 2018 Share Posted November 23, 2018 I was thinking about setting up a couple machines at a public club. I currently take care of 2 machines at work that aren't mine but I procured them with coffee funds, fixed them and stock them with goods at local stores, so I have some experience. The club is something I'm part of but am considering buying a couple machines and placing them in the business. Should I create an LLC and have them sign an agreement for me placing machines there? Should I get insurance against vandalism failures or things like that? Does anyone know of a good resource where I can look into researching the unknowns of such an idea? Thank You Link to comment Share on other sites More sharing options...
Southeast Treats Posted November 23, 2018 Share Posted November 23, 2018 You are off to a good start, the forum is a good learning resource. You don't say what kind of club this is (fitness center, social club, etc) so it's hard to gauge the potential of the location. As far as the LLC, that is not strictly necessary in most cases but not a bad idea to protect your personal assets, especially if you intend to grow the business. An attorney could better advise you on your choices there. Liability insurance is a must and is not too expensive, there are some prior threads about insurance providers on the forum. Insuring the equipment against vandalism is a different coverage and may be more complex, although some others here report having that type of coverage I go without. Most of my locations are secure enough not to worry about machine damage. A written agreement of some type with the location is also a good idea, especially if commission payments are involved. Good luck! Link to comment Share on other sites More sharing options...
CapitalCityVendingLLC Posted November 30, 2018 Share Posted November 30, 2018 If you are worried about vandalism at a certain location, you need to find a different location. When we look at a potential new account, vandalism potential is one of the first things we analyze. We have some gyms/fitness centers that do very well. Is that what you are talking about? As for an LLC, I'm not sure being that you only have a couple machines. We are an LLC, but we have ~120 machines. We avoid contracts but that is just the way we like doing things. We pretty much go on a "hand shake deal" 99% of the time. A contract can help though if it is a big account and you are in a competitive market. Link to comment Share on other sites More sharing options...
AngryChris Posted November 30, 2018 Share Posted November 30, 2018 You are required by law to report income. That means that you need to have a registered business to conduct business legally. In doing so, you are also subject to any sales tax laws in your local and/or state municipalities. In my opinion, starting an LLC is the way to go and buying general liability (for business) is the way to go. There are a few companies you can go through for business liability but they are generally anywhere from $300-$800/year and could be higher but shouldn't be anything crazy like several thousand dollars. Starting the LLC might be as simple as talking to an accountant/CPA and paying a few hundred bucks to do it all at once. Having an LLC gives a limited amount of protection (for your personal assets) from lawsuits dealing with your company. But, again, it makes you subject to taxes. I'm not trying to discourage you from starting an LLC but , rather, telling you that you should be reporting everything on your taxes. I am pretty sure that the majority of us serious full-time vendors here are 100% registered and conducting in legal manners but there are MANY vendors who do things completely under the table and I look down on that and I am sure many of my comrades do as well. Link to comment Share on other sites More sharing options...
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