State accounting

I bet you didn’t know it but you can get audited by the state. It was a very uncomfortable process.  I am one of those meticulous guys that pays attention to detail and has to have all of his ducks in a row.  So, if you’re not a detail-oriented person, you better become one or hire someone who is.  This will go a long way in covering your ass in down the road.  Keep detailed records on your estimates, work orders, invoices, materials receipts, profits, w-9s, and more.

Having every little detail documented will save you a lot of grief.  Keep everything!  Scan it and save to a hard drive and keep the hard copies in folder in a box.  Just make sure you document your ass off.  Even if the audit turns up something unexpected you will be able to identify the issue with your detailed documentation.  If you don’t have everything in order it just makes it easier for them to hammer you.  Though they may claim that it’s not their goal to do so, believe me it sure as hell feels like it.  So, keep everything and keep detailed records on all of your business transactions. 

Make sure you understand workmen’s compensation.  Again, hire someone if you need too. There are quarterly filings that you must complete. 

If you are going to do commercial work, you will need a sales/use tax permit.  You will be required to pay quarterly tax on those commercial jobs. This isn't required for residential work.