By Mark Oldberg: May 14, 2016: Blog
This summer the Takl app will be launching in Nashville, TN. It will be a great new way to earn money as an entrepreneur. You will be able to earn extra money or launch a variety of handyman type businesses.
While Uber is a way to put your car to work, Takl is advertising itself as a way to put your skills to work.
So what should you think about from a legal perspective as you consider signing up as one of Takl's first providers?
Just because you will be working THROUGH Takl does not mean you will be working FOR Takl. Just like Uber drivers, you will be an independent contractor. This means you are your own independent business and Takl is just helping customers find you, much like a marketing firm. This means that if something goes wrong you are the one that is liable.
The first step you should take is to register as a business. This means going to your local government office and getting a business license. A good business owner does not stop there though. You should look into forming an LLC to protect your personal assets. If you decide to start an LLC for your business (the easiest and cheapest liability protection you can get in most states), you should also open a business bank account. Courts will look to see if you kept your business affairs separate from your personal accounts when decided whether to honor your liability protections.
You are going to be earning a lot of money, so you should set yourself up as a legitimate business from the start.
Being your own business means your check will not have taxes taken out of it. Business owners have to be aware enough to know they must actually save money and send it to the IRS. Make sure to save between 20 and 30% from each check Takl forwards to you because you will need to file estimated quarterly taxes with the IRS. If you don't stay on top of remitting your taxes, you will be hit with a substantial penalty come tax time next year.
You have to know your limits by knowing what you and can't do. From a practical standpoint, if you go into someone's home to perform a job and you have no idea what you are doing, you will likely do a bad job. If the home owner catches you watching YouTube videos to figure out how to hang that ceiling fan you better bet you will be getting a 1 star review. If you do a bad job you could even face potential legal repercussions from either the homeowner or Takl if you end up doing damage.
Also be careful to avoid taking other jobs outside of the Takl app. If you do a great job the homeowner may also ask you to take a look at her plumbing issue. Many household repair jobs require a contractor's license. I imagine Takl will shy away from offering services that require a license, but that wont stop you if the nice lady offers to pay you directly. As a general rule, if you don't have a contractor's license you should stay away from jobs costing over $1,000 and/or are in the areas of plumbing, electrical, or HVAC.
Takl will be a great new way to earn money and kick-start your own business, but just remember that you will now be a business owner and that comes with responsibilities.
For a step by step guide to forming an LLC as a Takl Provider click here.
Sign up for my Free 8 Weeks to Launch Email Course to get step-by-step guidance on how to start a business sent to your inbox.