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View Full Version : Structuring my business....LLC?


dogdjour
04-23-2011, 09:05 AM
I mow part time 10-12 yards.
Licensed and insured.

Should I form an LLC?
I already have insurance then I'm protected for liability right?

Is there a reason from a tax viewpoint?

ALC-GregH
04-23-2011, 09:08 AM
Nope........

CLS LLC
04-23-2011, 09:38 AM
There is not a tax benefit. The benefit is if your business were sued for something they couldn't take anything you personally own, but only things the business owns. Insurance is great, but there is always a chance that you will be sued for more than your insurance limit and if you are a sole proprietorship they can take all your personal assets to cover the debt. It's a small price to pay for peace of mind. In Wisconsin it cost's $125 the first year and $25 a year after that.

That being said, whether or not you do it is entirely up to you.

doubleedge
04-23-2011, 11:11 AM
There is not a tax benefit. The benefit is if your business were sued for something they couldn't take anything you personally own, but only things the business owns. Insurance is great, but there is always a chance that you will be sued for more than your insurance limit and if you are a sole proprietorship they can take all your personal assets to cover the debt. It's a small price to pay for peace of mind. In Wisconsin it cost's $125 the first year and $25 a year after that.

That being said, whether or not you do it is entirely up to you.

Don't you also have to pay corporate tax on top of what you pay on your salary? I have never really liked the idea of getting taxed twice.

I'd see how much $1 million liability insurance costs first. That way, you don't have to loose anything in the event of a lawsuit.

ALC-GregH
04-23-2011, 11:13 AM
Don't you also have to pay corporate tax on top of what you pay on your salary? I have never really liked the idea of getting taxed twice.

I'd see how much $1 million liability insurance costs first. That way, you don't have to loose anything in the event of a lawsuit.

unless the suit is for 2 or even 3mil. Then you loose everything and your mother. Don't get me wrong, a mil policy is a good amount to have in any case.

93Chevy
04-23-2011, 11:14 AM
There's no reason not to from an LLC. I'm an LLC and I barely work at all anymore with my new full time job. I bank literally under a thousand a month with my business and I'm still an LLC.

NEW CITY LAWN CARE LLC
12-29-2011, 12:10 AM
http://money.cnn.com/2008/01/10/smbusiness/s-corp_or_llc.fsb/index.htm