Should apart time landscaper setup LLC?

[Hamons]

Ok guys help me figure something out?

I'm a school teacher who does landscaping work during the summers (about 2.5 mos). I do mostly instlaling beds and low stone walls and walkways. Last summer I netted about $4k. I do not have any employees.

I currently run my business as a sole proprietorship. Would it be worth it to organize as a LLC for liability reasons? I'm trying to decide.

YES - I will talk to an attorney before I make any decesions -- but would like to get your advice in these intial stages.

[KDJ]

Originally posted by Hamons
Ok guys help me figure something out?

I'm a school teacher who does landscaping work during the summers (about 2.5 mos). I do mostly instlaling beds and low stone walls and walkways. Last summer I netted about $4k. I do not have any employees.

I currently run my business as a sole proprietorship. Would it be worth it to organize as a LLC for liability reasons? I'm trying to decide.

YES - I will talk to an attorney before I make any decesions -- but would like to get your advice in these intial stages.

I would say S corp is the better way to go.But you should leave it as sole proprietor. Here is why, You have no employees, let just say that you had one employee. He was working next to a playground and threw a rock and put a eye out. They would hire a Attorney, sue the company and the employee involved in the injury. That would save your butt. If you were involved instead of your employee the Attorney would sue the company and you! So there in no point in changing from a sole proprietor unless you hire someone. Hope that helped a little.
I think I would see a accountant before a Attorney.

[John Allin]

A savy accountant will tell you that unless you have some significant personal assets to protect, there's really no need to incorporate yet. Get some decent insurance and you'll be fine.... although - as has been noted above already - check with an accountant.

Most lawyers will tell you to go inc. no matter what, since they don't generate any money unless you do.

[65hoss]

I have a couple of friends that are lawyers that I asked the same question to. They all said to remain sole prop as long as possible. Just increase the insurance coverage to protect you. Take advantage of the sole prop status as long as possible.

[MPhillips]

If you're planning on keeping your business structured the same way as you're currently operating, I'd say stick with the sole proprietership designation. LLC would certainly complicate your life a little bit....

[lawncare3]

LLC?

[KenGreenPro]

I have been toying around with the idea of an LLC and have done alot of research on it but to be honest I never really thought of the Sole P aspect as I was concerned about the liability issue, that being said, once again Mr. Alin brings up a good point which makes me go back to the drawing board and rethink the matter. Why should i complicate things with an LLC or a S/C corp if I can just cover myserf with more than adequate insurance. Makes sense to me....now since i havent done that much research on the Sole P thing, would someone explain the benefits of the Sole P status from a tax point of view?

thanks
Ken

[bruces]

Originally posted by KenGreenPro
I have been toying around with the idea of an LLC and have done alot of research on it but to be honest I never really thought of the Sole P aspect as I was concerned about the liability issue, that being said, once again Mr. Alin brings up a good point which makes me go back to the drawing board and rethink the matter. Why should i complicate things with an LLC or a S/C corp if I can just cover myserf with more than adequate insurance. Makes sense to me....now since i havent done that much research on the Sole P thing, would someone explain the benefits of the Sole P status from a tax point of view?

thanks
Ken

A one person LLC is taxed the same as a sole proprietorship. I'm no legal expert, but in my understanding the advantage of being a one person LLC would be additional liability protection (over and above insurance coverage).

You can accomplish this without the additional tax filings required by an S corporation, partnership, or C corporation.

In our accounting practice, we see many one person LLC's.