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Pecker
02-09-2005, 10:58 PM
LLC
Incorporated
DBA
other (whatever I left out)

How is your business organized?
And why did you chose the organization you chose?
Which offers the most protection?
What's the best organization for a lawn service?
What effect does it have on your taxes, if any?

Thanks in advance.

tonygreek
02-10-2005, 09:08 AM
just search "llc" and you'll read more than you want, with much of it based in subjectiveness. for this reason, talk to an attorney and an accountant to decide what best suits you.

PTP
02-10-2005, 09:52 AM
LLC taxed as an S-Corp.

Because that is what my accountant told me to do.

LB1234
02-10-2005, 11:28 AM
How is your business organized?

LLC with pass-through tax.

And why did you chose the organization you chose?

Spoke with accountant and attorney and weighed all pros/cons. Choose LLC.

Which offers the most protection?

Don't know you or your company...you need to speak to attorney and/or account depending on what you are trying to protect.

What's the best organization for a lawn service?

See answer above.

What effect does it have on your taxes, if any?

See answer above.

studentlawn
02-10-2005, 01:14 PM
You are going to want to file for for S - Corp. The difference between filling as a corporation and a sole - proprietorship (or partnership) is in the taxation and business ownership.

If you choose to be a sole proprietor then you personally are considered the financial entity of your business. This means that if your business is failing and the bill/tax collectors start a calling, they have a claim on all of your personal belongs, including your home. The good things about a sole proprietorship is the tax fillings are more simple, and you are only taxed on personal income.

Becoming a corporation is a little more of a complicated filling, but it seperates you from your business entity. This means that if you get sued for millions of dollars becuase you ran little Jimmy over with a mower, then they cannot touch your house and personal belongings. The downside is facing taxation at both the corporate and personal level. Your money gets taxed twice. I would consider this the best life insurance you can ever have. S - Corp is a filling for a small business where they can get around the double taxation. As long as your business is small (under 75 employees) then you can use this filling.

But like everyone else said. When you are in business you need your attorney on your right side and your accountant to on your left. Without these two your asking for trouble.

tonygreek
02-10-2005, 03:20 PM
studentlawn, your post is an example of why everyone should talk to an accountant and take with a grain of salt what they read on a message board:

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"This means that if you get sued for millions of dollars becuase you ran little Jimmy over with a mower, then they cannot touch your house and personal belongings. "
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your attorney would probably flip over this view of a corporate veil. you can, and probably would be attached to a suit of that, or any, kind. this is especially true if you are the sole shareholder.

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"As long as your business is small (under 75 employees) then you can use this filling."
----
employee number has nothing to do with it. the 75 refers to the maximum number of shareholders.

LB1234
02-10-2005, 04:39 PM
[QUOTE=tonygreek]studentlawn, your post is an example of why everyone should talk to an accountant and take with a grain of salt what they read on a message board:
QUOTE]

True...so very, very true...

studentlawn
02-10-2005, 05:21 PM
I don't disagree