needed advise on entering contract agreements

a few weeks ago a potential customer approached me.she was very much interested in getting her car detailed but,in the middle of the conversation she wanted to know if i was licensed and bonded.now i don't have a shop yet and i am working on getting everything legal.i do this as a side business.now this potential customer wanted to enter a contract agreement before any work was done to her car,even though i was not licensed or bonded...this seemed very fishy to me. does anyone have any advise on this situation????

Be sure that in the contract that you have that you are not licensed or bonded and that you are fully liable for all taxes, also make sure that ,for your own protection, that you put in your contract that it will be null and void on the day you become licensed and bonded. Also, for irs perposes I would have your client sign a new contrat every time you do work this will make you work look more like you are an independent contracter.
But if you really want to be sure, TALK TO A LAWER!! Not to shout but what ever you do you need a lawer, I have found in my biz that you will get into trouble if you dont have a lawer that you can turn to if something/anything turns up.
hope this helped

I should have added to my last message that my biz is not in auto detailing, but in web develoment.

While you remain small you should at least get some garage keeper's insurance, this will allow you to drive customers cars around and protect yo if you burn the paint or damage the car in any way. Good luck, if yo show her your insurance paper, she should feel at ease.

I agree. I have a policy that covers me if I damage a customers car while working. I can also drive the car and be covered. I have proof of insurance in a little folder that I can show someone if they ask but the occasion has not come up yet. Actually I was suprised how affordable insurance was. I wouldnt touch a car without it, it's not worth the risk. For example, I was working on a fellows brand new Aztec and a light fixture in the shop ceiling suddenly came loose and the ballast fell out only INCHES from the hood! I would have had to replace the entire hood and mabye more. You never know when you will need it but when you do you will be glad you have it!

John

Robert:

You have been provided some very sound advice in the preceeding posts...
All contracts form the basis for obligations of one party to the other and there are varous elemets or tests of the contract that are a must for it to be binding and legal. Many legal jurisdictions have varied statutes that govern these contracts. Basically when all things go well no contract is needed, but in the event of a dispute the contract will often be the dispute resolution tool. It is for this reason that in most jurisditictions for small value services verbal contracts are considered legal but unenforcable because they are not in writing. The term " let the decision stand" and " buyer beware also ofen applied by the courts so be sure to have your contract reviewed by a lawyer and be sure to read and understand it well.

How structured your client is and if the need for services is based on ongoing work will dictate if the contract is needed. If your client is a business it is indeed prudent for you to covenant to them things like maintining suitable insurance, carry workers comp, etc. Remember you too can incorporate reasonable covenants from you customer as well so keep that in mind when drawing up the contract.

Good luck

The only time I would be concerned about a contract is when doing a fleet of vehicles. My past experience with an individual that ask if I was bonded and insured was a potental trouble maker I found out later. There are plenty of good customers out there that will never ask for any such doc's.

marcus,thanks for the advise i do have a lawyer i can go to if needed and will consider on using that independent contractor option.

dan,i have never heard of garage keepers insurance.i live in washington,dc and i don't know if it's avalible in this area, but i'll reseach it.what insurance company carriers that type of policy?????

denny,i also was thinking that she was a potential trouble maker trying to bring a business down.

S10 guy,Yes,i have been provided with alot of sound advise from some real professionals and i really appreciate it alot.thanks for your response also,i'm taking all the advise i can get on every topic or situation i run into. thanks again!!!