What license do I need (Michigan resident) Scrap Indiana

Ok I need some help…
recently started new business venture. I am trying to set up business entity but have questions…
- My buddy owns a huge cargo trailer manufacturing company..almost million pounds of 6063 extrusion waste a year, among other scrap. It’s huge!
I am a Michigan resident. His company is in Indiana. I have been scraping his scrap in both states. Michigan and Indiana
I use my sole proprietor business, cash checks and pay him cash. We split the check but I pay him cash.
- only been doing this two weeks but it’s close to 50,000 dollars through my name .
…. should I file for an LLC and set a business up as a recycling company?
- should I buy his scrap and resell instead of selling it for him?
- I can do whatever… I probably am doing things wrong and don’t want trouble. I want simplicity!!
- if he is paying tax when he buys material and I scrap it for him But scrapyard pays me instead of writing checks to his business name will this get me in some tax problems? I am keeping half the money and paying him cash for other half
- I did have scrap yard write last two checks out to his company name and he said he didn’t want to do it that way..,
he wants cash

I don’t have any certificates
I don’t have any license -
- do I need a license or certificate to transport his scrap?
do I have to pay tax on this as income… yes I accepted half of the money but he is my friend and eventually he will get 100 percent of the money I have in the checks written to me ir my sole proprietor business - I want to help him gain control of his waste and want him to get as much recovery as he can from his scrap but I don’t want tax problems

thinking about opening an LLC and calling myself an unpaid consultant -
- I don’t need money
but if I am going to make money doing this how do I get completely legal and what is the best approach on this business venture?
- sometimes I haul across state line so is that a problem?
I don’t take scrap home
- load at his company in Indiana and haul directly to scrapyard sometime in Indiana and sometime in Michigan

please give me advice?

Hi yet again!

1. Yes set up an LLC. Depending on the county and state permitting processes and laws you might need a solid waste hauling permit. You probably won't need a general solid waste permit. But that depends on local regs.
2. Sounds like you're already doing this but yes, buy and sell for easiest record keeping and proper tax valuations.
3. See #2
4. About the license see #1.
5. The best way is to have me organize freight shipping, broker it to a yard I work with and pay you and you pay your friend loads and loads of money lol. The second best way is to form an LLC, get whatever solid waste hauling permit you might need, buy the material from your friend, sell it to the yard, get your check then pay your friend their share.
6. Probably not a problem but check with the state DEQ where you're selling to make sure. They might require a solid waste hauling permit.

Really not an expert on that topic, but if you haul interstate as an individual, it is one thing, but if you do as a LLC, I think that you'll also need to register to the federal and state governments (USDOT number).

Quote:

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Originally Posted by CopperMiner

Really not an expert on that topic, but if you haul interstate as an individual, it is one thing, but if you do as a LLC, I think that you'll also need to register to the federal and state governments (USDOT number).

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100%

I replied to your first post. I have business partners in Indiana. I can set up easy transactions to get the scrap picked up and sold.
878-207-6242 text me to start the conversation

I'd stop for now and meet with an LLC attorney. Paying your partner cash for half of the profits is all good and great and leaves the partner with an under the table non taxable gift but you are the principal on record for the entire taxable amount as earned income.