- taxes and scrapping?
Sorry for the diversion, but I don't think most scrappers paid taxes. The guys in the overstuffed pickups picking the alleys clean don't. Why pay taxes when you get paid in cash?
A schedule "C" or Sole Proprietorship filing covers almost everything an independent business guy wants to do. Of course you MAY need specific licensing and will of course be required to adhere to all applicable laws in your trade/ business. The only trick is to keep every receipt, every invoice, and be prepared to pay cash for labor, hoping they do not hurt themselves on the job. Going all out with workmans comp insurance will break the bank. If you work by yourself most of the time and only need help once in a while, find a guy you trust who understands that cash means cash. It might be possible to have your man write you a receipt for "tools" so you can deduct his labor cost. Liability insurance is a must have if you are performing actual work on customers property. These are just ideas, not saying anyone ever does this.
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