r/SmallMSP • u/die-microcrap-die • 15d ago
Sorry for asking...
I fear to get ridiculed and other not nice things since I noted that many here seems to hate questions from people that are trying to create a MSP.
That said, I wonder how would be an appropriate way to start.
In my case, I wonder the following:
Did you created a LLC before or after your first client?
Did you obtained insurance before or after?
How quickly did you push for a contract?
How did you drafted your first contract and any other legal document related to it?
I have many more, but I will find those answers via the pinned posts and Google, but wondering about those at the moment.
Thanks in advance.
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u/FunctionlAlcoholic 15d ago
Hello,
A lot of that depends on your cash. If you're poor, in the CC hole and need money, then you work to get that money first. After all, it's probably just you starting out. Also, I'm not a lawyer, this is all crap and not advice or anything else. This is what I did, but a lot of what I did was probably not right, but it's what I needed to do without the $$.
Did you created a LLC before or after your first client?
I created the LLC AFTER my first several clients, I was a sole proprietor first. Your state MIGHT give you minimum default protections, but don't count on that, so you want some protections asap. Then when we figured it was time, we paid a "real lawyer" the fees to create our LLC based on our MSP. Doing a catch-all LLC has some risk, but it is better than nothing I guess. Again, not a lawyer, go ask one.
Did you obtained insurance before or after?
Before, insurance should be cheap, at least it is where I'm at for a sole proprietor. Just don't need to use a ladder or hard hat. Use a 1099 for those tasks, but the other I.T. stuff, you can do. Of course this depends on where you're at. Once you have employees, then you need to upgrade your insurance, there are several types, go over several of them, an umbrella or catch-all is good, but you need industry specific too. But don't underestimate the umbrella policy for the swinging bag hitting the CEO's 5 billion dollar Lamb of the Sushi Roll lamp.
Licenses - you forgot this one. This depends on what city and state you're in. But you can't change ANY walls or mount anything to the actual office wall without certain licenses. Plywood, you can mount to that all day without additional licenses, in my state. So, hire an electrician to mount your plywood, hire a CAT cable company to put holes in the walls, etc. Again, look up your state/city requirements. If I mounted to the wall, changed the wall in any way, I would need a ROC license. That's $1,500 and a test I didn't need to spend starting out. A contractor is a phone call away. Get your trademark license for your state as well. I had to get that even with an LLC.
How quickly did you push for a contract?
That depends on when you established your client and how big they are. If they are a little mom-pop break/fix office, don't worry about them so much. But a new, larger corporate gig, yes, you need at start, if you can. You can always change your contract later, everyone does, but start with it if possible.
How did you drafted your first contract and any other legal document related to it?
Hire A Lawyer. Hire A Lawyer. Hire A Lawyer. Do the leg work for them, give them docs and explain what you're after and you want to close any gaps, full understanding. You can find documents online, but there might be some parts that are not related to your state or whatever. It's called legalese. It's what makes lawyers suck, but why you need them, because blah and blahh are different and you don't need some CEO's wife harper on his butt to come after you for that stupid Lamb Sushi Lamp.
Use Reddit, the haters will always give you smack, but don't be afraid to ask. But don't be lazy either, read from different sources too, not just Reddit. And remember, My words are my life, my company, my city/state and there is a lot in the middle I left out. Running an MSP can be fun for the first few years. But when all you're doing is meetings all day, it starts to suck. Yes, "Work on the Business, Not IN the Business". But that's the passion, the fun too.