Starting a parking lot business is never easy task. There is a lot to consider when it comes to running your business. While you don’t need to worry about many of the upfront costs commercial buildings have, you will still need to understand the costs of building a parking lot. Some cost are common sense, but others may take you by surprise.
Starting Your Business
Starting your business will begin by selecting a real estate property. One of the biggest concerns of the parking lot business is having a place that is close to attractions or shopping. Location is key to the success of your business. Unlike other businesses, the majority of your sales will be out of convenience. Advertising your parking lot will not usually get you additional sales. Select property that is easily visible and place only a few signs around it.
After selecting the property, you will need to choose a business structure. Most parking lots are a sole proprietorship because they have one owner. Very few are set up as a corporation unless they are part of another business or have multiple owners. There are also other business plan structures that you can use based on your situation, such as an S-Corp. Choose the structure that will be right for you and your company before creating your business plan.
Your Business Plan
Your business plan is going to be one of the most important asset your business has. This plan will be used when you try to get investors, establish company policy or get financial assistance. You may also need to present your business plan to your county or town officials in order to make your business legit.
A business plan is not have to be lengthy in order to be effective. There are several templates available online that can help give your plan structure and make it look more professional. If this is your first business, it is often recommended that you show your business plan to another professional. They can proofread your business plan and possibly offer advice if something does not seem feasible.
Taxes for Parking Lot Businesses
Any service that collects money is susceptible to sales tax. This means that your business will need to file taxes at the end of the year as if it were a person. In order to do this, you’ll need to register with the IRS and the state. If you applied for financial assistance, you may have already had to do this process. Depending on where you live, you may need to file a “doing business as” form.
Make sure that you understand all of the regulations ahead of time. When starting a business, many people seek the assistance of an accountant that has experience starting companies. This is because they can show you all of the necessary forms you need to fill out, along with everything you need to keep track of. Some financial data may seem irrelevant, but it becomes crucial when filing taxes later.
The Importance of Insurance
While your parking lot is not the same thing as a commercial building, you will still need to invest in insurance. People can still slip and fall in the lot. Even if the lot is attended, cars may still get broken into. Most companies will post a disclaimer saying they are not responsible for injuries or theft; however, there are some cases where this disclaimer becomes irrelevant. Having insurance is a way to protect your company even if the unexpected happens.
This article was contributed on behalf of TrueGrid, your number one choice when looking for the latest in parking lot design. Check out their website today and see how they can help you!