Business Ownership Records for Solo Tradespeople: Spreadsheet vs. Advanced Tracking Tools
Keeping clear records of your business's structure, who owns what (even if it's just you), and any major investments or loans is crucial. Messy records can create big headaches, especially when you need to show your business's value to a bank, bring on a key employee, or plan for growth. For solo tradespeople—like plumbers, roofers, or electricians—the challenge is picking the right tool. You need something simple enough for a one-person show but robust enough if your business takes off.
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The Quick Answer
For almost every solo tradesperson, a simple spreadsheet is all you need to track your initial investment, any small loans, and your major tools like a work van or a specialized tile saw. If you somehow grow very fast and decide to bring in a formal business partner who gets a share of the business, or you take a large loan from a few different people who want regular, formal updates, Pulley *could* be an option. But for most, it's serious overkill. Carta is a tool for huge companies that raise millions from big investors. It's completely unnecessary and far too expensive for a solo tradesperson, even one who dreams big. Think national franchises, not a local plumbing service.
Side-by-Side Breakdown
Spreadsheet: Free. This is perfect for tracking your own money invested, any business loans from friends or family, and the value of your work truck or heavy equipment like a roofing hoist. It's easy to set up for a single owner. Just remember it's a tracking tool, not a legal document for your LLC or business filings.
Pulley: Starts around $500/year. This is a big jump in cost for a solo business. Pulley is built for companies with multiple owners or big investors. If, for some unusual reason, you bring on several formal business partners (not just helpers) or get big loans where lenders want detailed ownership reports, Pulley offers a professional way to show who owns what. It's designed for tracking actual equity shares and options, which most solo tradespeople won't have.
Carta: Starts around $2,400/year. Carta is the Rolls-Royce of ownership tracking, but it's for venture-backed tech startups, not a solo roofer or plumber. It manages complex stock options and investor stakes. For a tradesperson, this would be like buying a cement mixer to stir a single bucket of paint. It's hugely expensive and has features you'll never use unless you're building a massive, equity-funded business empire with dozens of investors.
When to Use a Spreadsheet
You are just starting out as a self-employed plumber, electrician, or flooring specialist. You own 100% of your business (or are a sole proprietor). You've put in your own savings, maybe taken a small bank loan for a new work van or tools, and have no formal business partners. Your lawyer or accountant handles the actual LLC filings, but your spreadsheet helps you keep tabs on your personal investment and assets. This describes 99% of solo tradespeople.
When to Choose Pulley
This is a rare situation for a solo tradesperson. You might *consider* Pulley if you somehow quickly expanded to having 2-3 formal business partners (not just employees or subcontractors) who each own a share of your company. Or, if you took on several large loans from different people and they all want to see a formal "ownership" or investment record through a fancy online portal. For example, if you're building a regional roofing company from scratch and somehow have multiple equity partners from day one. Even then, it's likely more than you need.
When to Choose Carta
Never. For a solo tradesperson, choosing Carta is simply not an option. This tool is for venture-backed companies that raise millions from institutional investors like big funds. If you're a plumber, tiler, or drywaller, you will never need Carta unless your plan is to grow a national franchise and raise hundreds of millions in investor money, which is far beyond the scope of a "first-time self-employed" individual. Your focus should be on getting jobs, buying materials, and managing your crew, not complex equity management.
The Verdict
For almost every first-time self-employed tradesperson, a well-kept spreadsheet is the only tool you will ever need for tracking your business's core investments and ownership. Tools like Pulley and Carta are built for a completely different kind of business—those with many owners, stock options, and large outside investors. They are far too complex and expensive for a solo plumber, roofer, or remodeler. Stick with the spreadsheet and focus your energy and money on getting clients and doing great work.
How to Get Started
Spreadsheet: Grab a simple spreadsheet program like Excel or Google Sheets. Set up columns for "Date," "Investment/Loan Description," "Amount In," "Amount Out," and "Current Balance." Track your personal cash contributions, major equipment purchases (like a new truck or an industrial floor sander), and any business loans. Update it weekly.
Pulley: If you're in the extremely rare position where you need Pulley (e.g., multiple equity partners from day one), visit pulley.com. Be prepared to explain your unique business structure, as their system is designed for a different kind of company.
Carta: Don't. Carta is not for solo tradespeople. Your time and money are better spent on tools directly related to getting jobs done, like good accounting software or a scheduling app.
RECOMMENDED TOOLS
Carta
Equity management and 409A valuations
Pulley
Affordable cap table management for early-stage startups
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FREQUENTLY ASKED QUESTIONS
What is a 409A valuation and why do I need one?
A 409A valuation is an independent appraisal of your company's common stock fair market value. You need it to price your stock options. If you grant options at a price below fair market value, employees face immediate tax liability and IRS penalties. Get a 409A before issuing your first option grant and refresh it annually or after material events.
What is an option pool and how large should it be?
An option pool is the block of shares reserved for employee equity compensation. Typical pool sizes: 10-15% of fully-diluted shares at pre-seed, 15-20% before a Series A (investors often require a top-up). The pool is dilutive to founders — create it thoughtfully and model the dilution before your next fundraise.
Do SAFEs appear on my cap table?
SAFEs appear as a note in your pre-money cap table, not as shares — they convert to shares in the next priced round. Your post-money cap table should model the SAFE conversions so you can see the fully-diluted ownership picture before closing a priced round.