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deitleman
09-15-2009, 03:53 PM
Just wondering if most in this business are sole proprietors or an LLC? I've been studying both, and still unsure which way to go. I understand the basic concepts of both, and both seem to have multiple advantages and disadvantages. My equipment is paid for, and I will have insurance, so the only risk I can see is being sued? The taxes seem to favor the SP also. It's just me, no employees, and still pretty small scale. I'd love to get some other opinions and advice on this. Thanks

bohiaa
09-15-2009, 09:13 PM
unless your sitting on a million plus, and or an idiot. or just accident prone. the DBA. will be just fine. after you start gaining assets, and employees an INC or llc will need to be looked at....




Best of luck

ClippersLC
09-22-2009, 02:35 PM
DBA? whats that?

JShe8918
09-22-2009, 03:17 PM
I am DBA currently but i plan on going to LLC this winter. This day and time you can't ever be to careful. With unemployment at it's high point people are looking for ways to get money. There are crooks out there that will take you for everything you own. I mean if you hit someone with a rock some how and they sue you and you aren't LLC then they can take everything. House, truck, car, boat, money, anything and everything. I am not sure about the whole tax thing but i would rather protect myself and family by going LLC. To have a lawyer in my area do the filing and setup for you it is $350 plus $75 filing fee or you can talk to your accountant and he/she can tell you how to do it yourself and it only cost you the filing fee of $75. Hope this helps.

Jpeg lawn maintenance
09-22-2009, 03:21 PM
DBA? whats that?

DBa is doing buisness as like what you name is say your john doe doing buisness as green valley lawn care something like that thats what it is

hackitdown
09-22-2009, 06:15 PM
I am a DBA, but I carry a large liability policy. I am not sold on the idea that an LLC protects you from lawsuit.

bohiaa
09-22-2009, 07:52 PM
I am a DBA, but I carry a large liability policy. I am not sold on the idea that an LLC protects you from lawsuit.

it doesn't,,, true in larger corp's it does. but lets face it, How much damage are you going to do. most of us have 1 million in insurance. that will cover 3 kids. 2 houses. and a fire truck

JShe8918
09-22-2009, 08:26 PM
I talked to my accountant and he said your taxes will not change going from DBA to LLC. The only time it changes is if you go to a corporation. He said he isn't really sold on LLC unless you want it for liability reasons. We carry 2 million in liability insurance but that doesnt protect your personal assets. he said he likes S corporation the best for tax purposes. But he said no one should use it really until you make well over 100K. It alows you to have some of your company money not taxed LEGALLY and you are paid salary.

Lawn Shark prop mgmt LLC
09-22-2009, 09:42 PM
I carry 1 mil. coverage as well, but was advised by my lawyer who is also my brother in law to do my business as a LLC. I would advise you to talk to a lawyer as well, he might open your eyes up to the pitfalls of not being personally protected.

mowerbrad
09-23-2009, 12:44 AM
An LLC will separate your personal assets from your business assets. A DBA does nothing for you to protect you, basically, your business and personal assets are one in the same. Even if you have a $1million liability policy and you are sued, you never know what that will cost you exactly. So if someone were to sue for over $1million, then your insurance won't be able to cover all of it. All the remaining amount will come from your business and personal assest, that means you could lose your truck, equipment, house, "toys", etc. So if you were in a situation like that with an LLC, the most you could lose is your business, not any of your personal assets.

As far as taxes go, I'm not sure if it is different from state to state but as me being an LLC, I don't get taxed any differently than when I was a DBA. So you do have the initial cost of filing for an LLC, but that is a one time thing. I do not recommend that you file for an LLC yourself. Have your accountant or financial attorney file it for you, as I have been told, often times when you file it yourself you will usually not file all the necessary paperwork, even with the online deals.

I would say that you should become an LLC. It won't tax you any differently and it will protect you MUCH better than a DBA (not that a DBA actually protects you). You really have nothing to lose by becoming an LLC.

*******DO GO TALK WITH YOUR ACCOUNTANT/ATTORNEY TO FIGURE OUT WHAT EXACTLY WOULD BE THE BEST FOR YOU.********

JShe8918
09-23-2009, 12:58 AM
Oh yeah and one more thing to add is my accountant told me you have to pay a fee of 100 dollars a year for a special something another based on being a LLC. You need to go LLC. You will NEVER REGRET IT!!!

deitleman
09-23-2009, 04:28 PM
An LLC will separate your personal assets from your business assets. A DBA does nothing for you to protect you, basically, your business and personal assets are one in the same. Even if you have a $1million liability policy and you are sued, you never know what that will cost you exactly. So if someone were to sue for over $1million, then your insurance won't be able to cover all of it. All the remaining amount will come from your business and personal assest, that means you could lose your truck, equipment, house, "toys", etc. So if you were in a situation like that with an LLC, the most you could lose is your business, not any of your personal assets.

As far as taxes go, I'm not sure if it is different from state to state but as me being an LLC, I don't get taxed any differently than when I was a DBA. So you do have the initial cost of filing for an LLC, but that is a one time thing. I do not recommend that you file for an LLC yourself. Have your accountant or financial attorney file it for you, as I have been told, often times when you file it yourself you will usually not file all the necessary paperwork, even with the online deals.

I would say that you should become an LLC. It won't tax you any differently and it will protect you MUCH better than a DBA (not that a DBA actually protects you). You really have nothing to lose by becoming an LLC.

*******DO GO TALK WITH YOUR ACCOUNTANT/ATTORNEY TO FIGURE OUT WHAT EXACTLY WOULD BE THE BEST FOR YOU.********

Thanks Mower Brad, and all who responded. I'm going to discuss it with my accountant, but am now leaning towards the LLC. Besides a few more initial fees, there doesn't seem to be any draw backs, but is more protection. Thanks again.

landscapedesignpros
09-24-2009, 12:31 AM
I have to ask one question, right now I owe on my house about what its worth, but own by shop and a couple of flip houses, 5 trucks, 4 trailers, loader, ect all free and clear so what good dose an LLC really do me? my assests are all in my business They can have my house and my personal assests but I want to keep my business :-) How can I do that

LouisianaLawnboy
09-24-2009, 12:59 AM
I was advised that it was the best for me, and really didn't make a difference with the taxes. So why not be safe?

ein999
09-24-2009, 01:08 AM
I think dba means sole propiotorship (bad spelling).

For taxes sole prop is easier and the accountant will charge you less money because its easy to do your taxes a lot easier infact. But if you have a lot of assets to protect and you want to make sure you loose nothing then LLC.

I think an LLC Declares taxes like a corporation but im not sure best thing to do is talk to your accountant and maybe a lawyer. If you know what you are doing and have insurance and you dont deliberatly harm anyone then i dont think you need an LLC. Im not sure so do more research.

93Chevy
09-24-2009, 01:37 AM
I am not sure about the whole tax thing but i would rather protect myself and family by going LLC. To have a lawyer in my area do the filing and setup for you it is $350 plus $75 filing fee or you can talk to your accountant and he/she can tell you how to do it yourself and it only cost you the filing fee of $75. Hope this helps.

An LLC "member" fills out a 1040 Schedule C, just the same as a DBA.

I am a DBA, but I carry a large liability policy. I am not sold on the idea that an LLC protects you from lawsuit.

If you keep your business and personal assets separate, then the court cannot pierce the corporate veil. If you make an unclear distinction between personal and business assets, then your statement is true.

it doesn't,,, true in larger corp's it does. but lets face it, How much damage are you going to do. most of us have 1 million in insurance. that will cover 3 kids. 2 houses. and a fire truck

Liability insurance does not cover personal assets if sued.

I talked to my accountant and he said your taxes will not change going from DBA to LLC. The only time it changes is if you go to a corporation. He said he isn't really sold on LLC unless you want it for liability reasons. We carry 2 million in liability insurance but that doesnt protect your personal assets. he said he likes S corporation the best for tax purposes. But he said no one should use it really until you make well over 100K. It alows you to have some of your company money not taxed LEGALLY and you are paid salary.

With an LLC, you can write yourself a check any time for any reason, and you will not be taxed. You are only taxed on what your business makes. It's called pass-through taxation.

*******DO GO TALK WITH YOUR ACCOUNTANT/ATTORNEY TO FIGURE OUT WHAT EXACTLY WOULD BE THE BEST FOR YOU.********

Absolutely correct in everything you said, but I will point something out. I'd rather talk to an attorney because everything I say to him is private. I could theoretically tell him that I'm cheating on my taxes, and he is not allowed to testify against me. My accountant can. Just to point that out.

Oh yeah and one more thing to add is my accountant told me you have to pay a fee of 100 dollars a year for a special something another based on being a LLC. You need to go LLC. You will NEVER REGRET IT!!!

The fees and regulations vary state to state. Some states do not allow for a sole member LLC, like PA. In that case, you need to have another "member," but you can set them up in the articles of incorporation to have no say in the business. All that varies state to state.

Thanks Mower Brad, and all who responded. I'm going to discuss it with my accountant, but am now leaning towards the LLC. Besides a few more initial fees, there doesn't seem to be any draw backs, but is more protection. Thanks again.

That's correct information.

I think dba means sole propiotorship (bad spelling).

For taxes sole prop is easier and the accountant will charge you less money because its easy to do your taxes a lot easier infact. But if you have a lot of assets to protect and you want to make sure you loose nothing then LLC.

I think an LLC Declares taxes like a corporation but im not sure best thing to do is talk to your accountant and maybe a lawyer. If you know what you are doing and have insurance and you dont deliberatly harm anyone then i dont think you need an LLC. Im not sure so do more research.

Technically, while an LLC is a hybrid form of corporation, they file the same tax form as a sole proprietorship. Business earnings are taxed. Personal earnings drawn from the business are not taxed.

And you can take that to the bank. :laugh::laugh::laugh::laugh::waving::waving:

Good luck in your endeavor. :waving:

rm25x
09-24-2009, 09:55 AM
$250 set up my LLC with mynewcompany.com, I was very happy with their professionalism and turn around times.

johnc8407
10-02-2009, 04:53 PM
Who did everyone get their insurance from? About how much is it?

93Chevy
10-02-2009, 07:43 PM
My G.L. Insurance is through Utica First Ins Co. My truck/trailer ins. is through Allstate. Both reasonable rates.

topsites
10-02-2009, 09:17 PM
I don't care how small you are, if you're not an LLC they can come after anything you own,
to include your cars, your house, the furniture, your dog and the playstation, and if they're
in a bad mood they might take the clothes you wore to court that day.
Yup, and you might walk a free man but you can be left butt naked on the street.

Now in a very technical sense an LLC doesn't grant you perfect immunity either but it does create an extra
(and tough) barrier of legalese to work through, so as far as I'm concerned it's a small fee involved to create
that shield, and at the very least it buys you some peace of mind.

Now they can still take away your entire business in a lawsuit, but I say protect yourself.

An LLC will separate your personal assets from your business assets.

This man explained it best.

Allens LawnCare
10-03-2009, 09:50 AM
I have three kids, any chance I can just throw one or two of them in for free. Gotta be worth something

bohiaa
10-03-2009, 09:54 AM
I have to ask one question, right now I owe on my house about what its worth, but own by shop and a couple of flip houses, 5 trucks, 4 trailers, loader, ect all free and clear so what good dose an LLC really do me? my assests are all in my business They can have my house and my personal assests but I want to keep my business :-) How can I do that

If you have ever studyed the home business you would be shocked.
roofing business too.

they simply operate under this name for a set amount of time. then they go under, and resurface under another name.
you would have to do something really bad for someone to come after your personal assets. or if you filed for bankruptcy.

noone wants your mowers. an old trailer.
Like I stated earlyer. a DBA is just fine. once you become a million dollar company, dont worrie about it

txgrassguy
10-03-2009, 03:02 PM
Different States have different tort laws in effect so it all depends on where you live.
The idea that different forms of incorporation protects individual assets is a misnomer at best.
Civil lawsuits can/and do pursue individual assets depending upon the manner of suit and degree of irresponsibility displayed by the act.

Trevoryard
10-25-2009, 12:44 PM
Anyone own a home or rent an apartment and carry homeowners insurance or a renters policy? Yes. Your policy will cover any stupid thing you do like fling a rock at someones eye ball with a weed eater or hit someone in the head with a golf ball on the weekend. It is called PERSONAL LIABILITY and everyone has it that has a homeowners policy. Most policies come with $300,000 in liability and can be amended up to $500,000 for another $5 - $10 depending on your insurance company. I am a dba and am having a tough time making the move to an LLC because I was an insurance underwriter and have been in claims for over 6 years. Your insurance companies lawyers are the best on the planet and WILL do ANYTHING to keep the insurance company from paying out more than 10% of what you are being sued for. I was in a case where a roofer fell off a roof and landed on stacked bricks. He died, and the insurance company only paid out $60,000. It is HIGHLY unlikely you will be sued for more than what your current home owners policy contains.

I am not completely sold on the idea of the s-corp or LLC unless you have employees and need to legaly evade some taxation. I agree with those saying "unless you have $1,000,000 in personal assets" then a dba is just fine. Up your insurance policy to $2mm each occurrence and $4,000,000 general aggergate and upgrade to a "contractors plus" form and enjoy the peace of mind. Up your homeowners or renters policy to $500,000 if possible and pay the extra $5 a year.

If anyone is or used to be an attorney or an accountant has any different advice than what I said, please correct me. Those who are DBA now, take my advice. If your company grows larger and you have employees, become an LLC or S-Corp. You do have much more liability with employees. They take less pride in your company and will be more likely to make a mistake than yourself.

My 2 cents...

93Chevy
10-25-2009, 08:23 PM
Anyone own a home or rent an apartment and carry homeowners insurance or a renters policy? Yes. Your policy will cover any stupid thing you do like fling a rock at someones eye ball with a weed eater or hit someone in the head with a golf ball on the weekend. It is called PERSONAL LIABILITY and everyone has it that has a homeowners policy. Most policies come with $300,000 in liability and can be amended up to $500,000 for another $5 - $10 depending on your insurance company. I am a dba and am having a tough time making the move to an LLC because I was an insurance underwriter and have been in claims for over 6 years. Your insurance companies lawyers are the best on the planet and WILL do ANYTHING to keep the insurance company from paying out more than 10% of what you are being sued for. I was in a case where a roofer fell off a roof and landed on stacked bricks. He died, and the insurance company only paid out $60,000. It is HIGHLY unlikely you will be sued for more than what your current home owners policy contains.

I am not completely sold on the idea of the s-corp or LLC unless you have employees and need to legaly evade some taxation. I agree with those saying "unless you have $1,000,000 in personal assets" then a dba is just fine. Up your insurance policy to $2mm each occurrence and $4,000,000 general aggergate and upgrade to a "contractors plus" form and enjoy the peace of mind. Up your homeowners or renters policy to $500,000 if possible and pay the extra $5 a year.

If anyone is or used to be an attorney or an accountant has any different advice than what I said, please correct me. Those who are DBA now, take my advice. If your company grows larger and you have employees, become an LLC or S-Corp. You do have much more liability with employees. They take less pride in your company and will be more likely to make a mistake than yourself.

My 2 cents...

So....you're saying that if somebody sued my business, only up to a certain percent of my PERSONAL assets could be seized? Because with an LLC, if you run you business completely separate from you personal life, only your business assets could be seized. Thanks, but I'll spend $125 once in my lifetime and become an LLC.