Any advice for someone starting out with limited room with a focus on E-waste a

Hi guys, 19 yr/o looking for advice to take my scrapping to the next level because I hit a plateau. I've had a few pickups and curbside scraps, and I've managed to make about 1k in one calendar year by reselling working stuff on ebay and scrapping the rest.

Problem is I don't have a truck, I just drive a rust bucket car, so I can't do big pick ups. I have advertised on Craigslist and picked up from a total of 4 people that had around 5 items each mostly computers, laptops, and VCRs. I had to turn some down because had too much stuff. Looked at my W2s and Uncle Sam robbed me of my down payment for a truck; taxed 6k and I only made 28k for working part time as a student going to trade school.

Also I live with my parents, I have no room to scrap big things like appliances; As a rule I can't take anything that does't fit in a ford Taurus. I have now made a proper poster with graphics, a business name, and list of things I am willing to pick up;

"Computers - Laptops - CRT & LCD Monitors -Cell phones
VCR / DVD / blu-ray players - Stereos - Microwaves
Toasters - Blenders - Chargers - Adapters - Power strips
Battery Backups - lithium-ion batteries
Video Game Systems - TVs - Fans - Clocks - Radios
Projectors - Camera - Ink & Toner Cartridges - Cables
House Wires - Dehumidifiers - Window AC Units - Electric
Heaters - Coffee Makers - Metal Plumbing"

Should I register an LLC so I can write off my expenses, like a truck, gas, shipping supplies, etc?

A truck is a pretty big reach these days but i would set my sights in getting something a bit more robust than a Taurus. They have an issue with the splines on the torque converters shearing off even under a light load. The torque converter itself is only a hundred bucks, but the labor to replace it is usually more than the value of the car.

A Subaru Forrester will give you more storage room and they're a pretty solid used car. (Make sure that the timing belt has been replaced every 100 K.) The all wheel drive is a nice feature. Even better if you find one with a tow bar already installed. Add a 6'x8' trailer and you've got a combination that will do most of the work of a pickup at much lower cost.

It's a hard call on an LLC. Might depend on your state laws on what the best choice is. I always operated as a DBA and never had any tax problems.The main thing is to keep careful track of your operating expenses. If you made a grand on scrapping in the past year ... you're probably operating at a loss.

The 28 grand for a part time job is a much better deal for you.

Originally Posted by mikeinreco

Thank you for being in agreement about the truck....It is a basic requirement.....we have to remember that hills resides in Maine which is basically another planet from the rest of us

Hey now ... don't be disparaging Maine. It's still a fairly good quality of life despite the fact that it's 100 below zero and we have snow piled to the rooftops at the moment. I'll tell ya man ... if this keeps up we're gonna put on a sweater.

I dunno ... i was on my own in the trades for sixteen years. A truck or full sized cargo van is an absolute necessity for that kind of work. I get what you're saying.

The thing is that new trucks are running 50 - 75 grand these days. Crappy old trucks with over 200 K. miles are selling for 8 grand and they are wicked hard on gas. Truck's gotta pay for itself and that's not so easy to do with scrapping.

Ya know ... figure a young guy just starting out. He's going to trade school and working part time. Makes 28 grand just working part time ? The trades make 20 -40 bucks and hour with a full benefits package just starting out.

Given the overall ... what would your best advise to a young fulla be ? Stay with your trade or go deeper into scrapping ?

Stay in trade school for sure. Scrap money on the side will always be there. Also you did your taxes wrong. No way you pay over 20% in taxes making 28k/year. At 28k you should get a hefty refund.

And if you want to build a scrap business but are starting with a car only my recommendation is to try to find plumbers and electricians who will sell you their scrap wire, copper and brass and use your car to pick it up and drop it off. Unless it's a large operation that should be able to fit in a car.

Originally Posted by JJinLV

Stay in trade school for sure. Scrap money on the side will always be there. Also you did your taxes wrong. No way you pay over 20% in taxes making 28k/year. At 28k you should get a hefty refund.

It's conceivable. Depends on the job and if taxes are taken out. A lot of the younger guys that work in the stern of a lobster boat and some guys in construction get paid in cash here. They are considered to be subcontractors and therefore self employed. Self employment tax is 15.3%. (That covers Medicare and Social Security.) Another 4.7% for state and federal taxes for a single filer isn't outside the realm of reason.

Those guys get beat up pretty hard because they really don't have many legitimate business expenses that they can take out. I've seen it time and again ... they're young and figure they can fly under the radar for awhile without filing taxes. That lasts for a couple of years and then the guvmin't gets wise to what they're doing. Then it's fines, penalties, and a 20% yearly vig on their outstanding tax debt. It's cruel.

The OP's post could read different ways. One possibility is that he's bummed out because all of the money he had saved for a truck is going to have to go to pay the income tax on that 28k. Whoo boy ... i know that feeling from being self employed for so long. Never could keep up with my quarterlies because there wasn't anything coming in during the winter months when construction was slow. The legal requirement to go out and buy health insurance was the straw that broke this old camel's back. Lol ... then they tried to fine me on my taxes because i couldn't afford to go out and buy health insurance.

Ohh well ... life goes on. Pay no regard ... i'm just off on a rant.

Originally Posted by mikeinreco

Thank you for being in agreement about the truck....It is a basic requirement.....we have to remember that hills resides in Maine which is basically another planet from the rest of us

I did think that, and when I was doing curbco with grills and water heaters and large ferrous loads, I would for sure say a truck is required. However most of my recent (and most profitable loads) I could have done with a hatchback or sedan. You can fit a lot of laptops into a sedan. So, it all depends on what scrap you are going after. I had a load with ~35 laptops once, and they were pretty decent (although pretty heavily used) i5/i7 laptops and each sold on ebay for $80-$200 each. And I could have done that with any vehicle, they could fit stacked up on the passenger/back seat. However, Most of my loads are a mix of laptop and desktops so the truck does come in handy, but honestly a Van would be even better as it would all be enclosed and away from the elements.


If I were starting over and didnt already buy my truck, knowing now that I focus on ewaste, I would have just gotten a cheap minivan and taken all the seats out, and slap a business sticker with my name and number on the side of it.

Harbor freight has two folding trailers. One for $500 and one for $550. Spend the extra $50 and get 500#.additional load capacity...
https://www.harborfreight.com/automo.../trailers.html