All Forum Posts by: Terry Portier

Darn it! And I thought he was going to send you flowers there for a sec, lol!

You think you need thick skin to be here go try a contractors forum you'll be glad to be back.

Here I thought I'd share this guy and some notes since I preparing to add an attorney to my team soon. I talked to him about my contracts he helped me for free. Just call around and get with some people in state offices. One thing great about our state is for the most part people in state offices are VERY friendly and helpful unlike some other states and now with the new tax benefit and no franchise tax we are getting up there with DE, NV, and WY as "Business Friendly" ...It to me is a no brainier to not go corporate with the tax benes, and the state is making alot of effort to help small business grow here.

My LLC has grown to a point I don't have time I will seeing private attorney' starting Monday..I also found a tax and business person that knows more than all the CPA's in the firm.

Spoke w Tom Hatton, attorney in the KS Dept of Revenue, Policy & Research. He stated that 1.5% is a reasonable charge to be assessed and should be referred to as "interest charges and late fees". "Usury statutes" limiting collection to 10% APR apply to financial lending institutions not retailers or a "retail business". He said that a construction company selling services is considered "retail". He suggested referring to a department store credit interest and fee policy notices (I save what I get in the mail from Macy's, JCPenney, etc.) for contract language and also having an attorney review the contract.

I think I'll stick with contractor that way people don't expect me to know what I'm talking about, less pressure ; )

The best source of info and a good starting point is here: http://www.kslegislature.org/li_2012/b2011_12/statute/

I spend all my fun free time there J

Register and obtain Articles for the LLC does not require an attorney simple form"DL". Here:

http://www.sos.ks.gov/other/articles_of_formation.html

Fed tax here,

http://www.irs.gov/publications/p3402/ar02.html#en_US_publink1000205907

State,

http://www.ksrevenue.org/busregistration.html

Note: Get a hold of them, in 2013 KS passed a new law that passive income from a LLC in a General Partnership(default when you register) is not taxed. If you elect sub chapter S and have W2 wages it is.

Business tax registration here: Form CR-16, simple and again FREE!

http://www.ksrevenue.org/forms-btreg.html

Labor laws.

http://www.dol.ks.gov/contact.html

You don’t need to spend a bunch of money on junk generic guru courses, get familiar with the fed and state requirements, including CLP (commercial liability) and WC insurance. You can talk to state attorneys on the matter(s) as I have or private some for free once you know what you are talking about based on research from credible sources like I posted above, or case law in the state of KS.

You don't need a "CPA" necessarily a good tax preparer can also help with every aspect of running the business and growing it. If you go public a CPA comes in handy and the cost for one. There are law offices out there that deal with many of the areas of law that LLC's touch and it is not just Real Estate.

Forum psychology is interesting; I too have been on many for years and seen it all! You have the ones that love to answer questions, I think the majority do that participate. Some in a condescending way (I think that has to do with the feeling they get by doing so). I truly believe some thrive on it, since there is no other place in their lives to get it. I guess for those you need “thick skin” (interesting how you read of the need for that on most forums), in eye to eye communication not as often.

Then you have to ones that rarely ask questions in fear that they might be attacked or don’t know something.

Interesting because I have found very “authoritative advice” even legal without the use of attorneys and with the use of attorney’s right here on BP. Of course if I thought I needed an attorney I would see one, dah! IMHO I see that a lot of folks would rather hire an attorney or advice someone to, rather than take the time to read statues or case law, or post questions or make any attempt to educate themselves on law. I usually ignor the ignorant response to "go get an attorney" that's not advice or even an attempt to answer a question, most everyone knows that, and I see that as people that don’t have the intellect to understand law or try.

I learned A LOT from BP on LLC's, and other internet sources. My questions and comments or post at times where silly, but I did some research beforehand to a point that no one else knew what the statues meant either lol as hard as they tried. Oh it was and still is entertaining reading the legal guru's post that have never been in a court of law, but hey, it's all good I still value, respect, and have learned from those post mainly by doing some research to prove them wrong which is most cases they are. After being a LLC for a year now, and researching a year prior, I have an appointment Monday with one finally to start the interview process ;) We'll see how far off I am, I have already demonstrated good communication with them, know how to choose them, what I want from them. Thanks BP.

I too wish there were a way to block post, especially the ones that post info that is not well researched or backed by a credible source which most are not (IE: Case law or statues).

There are some sites I will not post on the overall intellect level is too low. BP is about the only site I take the time for anymore, lots of educated people I like being around. :)

Unless an REI has run one of these construction companies it is very hard to explain, that is, unless you as a REI have been in court trying to collect on a clients defaulted account. There is a big difference between being a successful REI that has one or two contracts per month, to a big fish company that has 100 of thousands of $ in reliable inventory to move and equity as a result. The marketing and financing games are even bigger than the REI deal with for big fish construction companies that extend big credit.

Having done both REI and a construction company I can see the relationships, and can also see they are two totally different animals on a large scale ;)

Personally, the REI is not my target customer, a waste of my time, there are bigger fish out there I'd rather fry. :) I see my REI business as related, but separate, totally different contracts, legal entity, and business model.

Goggle: Fortune 500 construction company, look over top 5 their websites, you'll see what I mean. Huge! Now scale it down to our level to get a feel for it.

@Wes Eaves I wish you were here to help me collect from a dead beat REI client I thought I could trust. Putting a lien on their house is worthless, it can only last one year here and can not be reissued. If they file bankruptcy I am last in line. So it is going to take me about a year to take this INC. REI to court, alot of my time, and in the end if CH 11 is filed I loose more.

If a client wants alot of my money up front, and it's past the $4K small claims limit, I won't do business with them unless they agree to put it in an escrow account. I works both ways, and to think that all the liability should be placed on the contractor is bad thinking.

I issue a lien release when the job is fully paid, looks something like this, like I said I just want to get paid and could care less about a lien it gives me no leverage, I loose $ if I have to pursue it. If your a GC and don't know how to word your contract legally you can loose attorney and collection fees.

In consideration of $___________________, receipt of which is hereby acknowledged,

Paramount Construction, LLC releases the lien on property owner

_________________________________________________from any and all liability resulting from construction, restoration, and/or modification of the building located on premises known as___________________________________________________________________

Signed this ______day of_____________________________, 20______

Contractor/Company Name **please print**

Contractor/Company Officer Signature Title

PS: If you are that worried about the contractor you may not know require they have a suety bond, my contract states my client pays it and it does not cost that much.

Jon what about a driveway drainage system for the future. Here is the channel installation, looks easy, low cost, add some plumbing to the ends to divert the water where you want it, and/or widen it to your easements. Search around, I'm sure there are kits out there.

https://www.youtube.com/watch?v=b1iFnTJFMCA

Wow! I' about 500 miles east we get hail all the time, don't hear of it much in Denver, more snow. Sorry for your loss too. I always enjoy reading your post, learned alot from you.

I checked what we charge for roofs, siding, and concrete, all were within $.50/sq-ft of the mid point("better") based on direct experience in our zip. Not bad, might have to do some more checking and get rid of the expensive estimating software we use. Thanks for the heads up.

Makes me wonder how these guys can afford to go around the country staying on top of current material & labor cost, and how often they update? Program price list we use is updated monthly, so they say.