Originally Posted by Shawn S
I came here to post what mowerbrad did. Spend a few hundred dollars NOW for an attorney's and accountant's opinion. Each time I have started a business I have asked both what the best format is.
If your choice is sole or LLC then IMO LLC is BY FAR the best way to go.
I would ask an account and an attorney if you should go sole-proprietorship, LLC or S-Corp. If you choose one of the latter treat it like a business that is seperate from your personal stuff. The most important is that it has its own bank account.
You must have a hell of an operation if you need a F350 crew cab to pull your mowers around. Whatever you buy, buy it with cash. Debt stinks. A business with little or no debt has a HUGE advantage over a highly levered business. I fail to see how an F350 crew cab will grow a mowing business unless you are strapping a 84" mowing deck under it.
Shawn, The reason for the 4 door cab truck is so I can have 1 vehical for my house hold to go out in and a work truck. I have 2 big dogs, Family, ect. I figured it be cheaper to have a big work truck I can use as personal and work then looking into a 3rd one.
Originally Posted by CL&T
That's not exactly correct. True, if a creditor filed suit for a debt incurred by the LLC they would only be able to collect from the assets of the LLC, not your personal assets. BUT creditors are smart to that and will require a personal guarantee which means that if you default they can go after you personally. So your LLC, S corp or even a C corp will not protect you.
As for other suits, anything you are likely to be involved with as a small one man LCO is negligence. If they can show gross negligence on your part (say a rock gets kicked out by your machine and hits someone in the head making them a vegetable) your LLC, S corp or C corp once again will not protect you in a civil suit. Further, if your business is convicted of criminal charges the owners will be thrown in jail.
So what is a corporate organization good for? Tax advantages, partners, shareholders, estate planning, all of which unfortunately a one horse LCO making 20k a year has no use for.
Thank you, I think I'm going to do solo but gonna talk to my accounten this week. This is a side job, I'm a county mechanic and just using this as extra cash. I enjoy doing it and very good at it.