Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #11  
Old 08-31-2000, 12:07 AM
tslawn tslawn is offline
LawnSite Member
 
Join Date: Aug 2000
Location: Edgewater, Maryland
Posts: 39
I was a paralegal for 11 years until I did this. Basically, and no, I don't know what a lawyer knows, but...incorporating does shelter you somewhat from lawsuits from customers, i.e. in case of injury and such. But a good liability policy should protect you in such cases. But, even if you incorporate, you still need credit from your vendors. You will still need to sign a personal guarantee on any credit your company extends. If you default, you will be sued along with your company. And if the Court finds that you defaulted and owe the money, you and your company will get a judgment against you. If you incorporate or don't incorporate and one of your employees majorly screws up, you are responsible for them and their actions and thus can be sued personally along with your business. As far as taxes are concerned, if you're incorporated, you must pay yourself a salary and you will be taxed. If your company makes a profit, the company must pay taxes on the profit money. So...What's the difference in being self-employed? I myself am self-employed. I don't pay myself a paycheck but I do pay self-employment taxes and pay taxes on my profit. so what is the difference? 1/2 dozen or 6 of another I say.
Reply With Quote
  #12  
Old 08-31-2000, 12:32 AM
paul paul is offline
Lawnsite Addict
 
Join Date: Dec 1999
Location: Chicago,Ill.
Posts: 1,625
Have been all three, Sole Propriter, A Partner and a Corporation. No single one is perfect, all have advantages and disadvantages. Sole Propriter easier to do taxes easier to sue, partnerships probably the hardest to run and workout tax wise and business wise, corporations hard taxes filling and more reports to fill out, easier for you to make out your taxes. As for being sued not so much the cost for claims but cost of defence from claim, see a corporation can pay for stock holders defence or an officers defence, for a officer to be sued plantiff must show reason for suit and cost is big dollars that he must pay limits problems of smaller suits.

Question I have is how many here think that a lawsuit is going to be their biggest problem?



Reply With Quote
  #13  
Old 09-01-2000, 11:53 PM
eslawns eslawns is offline
LawnSite Senior Member
 
Join Date: Jun 2000
Location: Portsmouth, VA
Posts: 712
Machine,

Lawyers and CPA's are bound by law to tell you the truth. Of course, not everyone scrupulously observes the law. BTW, do you cut lawns free? Why would a lawyer give "free" advice?

Guido

Noone can answer all your ?? here. Things will vary a great deal from state to state. I know for a fact that Inc. will not protect you from lawsuits. I know a plumber who left his keys in his truck. It was stolen and wrecked. The victim sued his business and him personally and won a huge settlement. He assumed he ws protected by incorporations. Remember this: when people sue, they sue where the pockets are the deapest.
__________________
Do not meddle in the affairs of dragons. Because you are crunchy and taste like chicken.


Endless Summer Lawn Care
Portsmouth, VA
Reply With Quote
  #14  
Old 09-02-2000, 01:30 AM
southside southside is offline
LawnSite Senior Member
 
Join Date: Jan 2000
Location: Brisbane Australia
Posts: 790
Over here in Oz we have:

Sole trader: (me)

Partnership: up to 50 partners.All partners equally liable for debts.

Proprietary Limited Companies: These may be listed on the stock exchange or unlisted.They are run by a board of directors.The board of directors is liable personally for
debts.If the company goes into liquidation the Australian
Securities Commission can hang them out to dry.

We don't have Inc companies here.

Karl
__________________
Karl
Southside Slashing
Reply With Quote
  #15  
Old 09-02-2000, 11:10 AM
Lazer Lazer is offline
LawnSite Bronze Member
 
Join Date: Jan 2000
Posts: 1,446
The administrator should edit posts that are blantantly false or wrong.

This sites getting bigger - great - but the amount of BS diminishes it's credibility.
Reply With Quote
  #16  
Old 09-02-2000, 01:40 PM
thelawnguy thelawnguy is offline
LawnSite Silver Member
 
Join Date: Dec 1999
Location: Central CT
Posts: 2,412
With all due respect, Lazer, your opinion isnt the only correct one. I will say, this thread is all over the place, and the different replies is surely incentive for one to do their own investigating.

Dont forget, also, rules for SP/LLC/LLP/etc vary from state to state. What works in CA may not cut it in CT.
Reply With Quote
  #17  
Old 09-02-2000, 03:22 PM
Marquis Lawn Marquis Lawn is offline
LawnSite Member
 
Join Date: Jun 2000
Location: Arlington, TX
Posts: 21
My biggest reason in organizing an S-corp is the liability issue. As my personal assets increase, and our biz adds more employees, our chances of lawsuits increase as well. We carry liability insurance on the biz, of course, but the S-Corp protects us from anything above that. Suppose, God forbid, one of our employees plows into a schoolbus full of kids. After the insurance runs out, then who do the parents sue? The $8/hr employee, or the biz owner? Exactly. An S-Corp limits my liability to what I have in the biz, and nothing more.

Other benefits are of tax issues. If you have a good accountant, and play your cards right, then the S-Corp is THE way to go in the tax arena also. You have much more control over your tax life as a corp.

That's my two cents on the issue.
Reply With Quote
  #18  
Old 09-02-2000, 04:37 PM
Lazer Lazer is offline
LawnSite Bronze Member
 
Join Date: Jan 2000
Posts: 1,446
lawnguy,

This has nothing to do with opinion. The laws are the laws. Of course they vary from state to state, but your opinion of them doesn't change them.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 08:20 PM.

Page generated in 0.09415 seconds with 9 queries