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Old 10-16-2010, 12:49 AM
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PLS-Tx PLS-Tx is online now
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Llc or Inc. for a lawn service???

We are looking for a new CPA, our left the area. One that we talked to said we need to become Inc. and another one said Llc.

We have until the end of this year to decide.

What have some of you done, or what do you know about the two.

Thanks
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Old 10-16-2010, 03:45 AM
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Patriot Services Patriot Services is online now
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When you say "we" I assume you have a partner. LLC is better geared to partnerships. Contrary to what you may read here there is no tax benefit over either one. LLC's seem to be more popular these days. I created mine online very easily for a few hundred dollars. They took care of everything including listing the dba in the newspaper.
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Old 10-16-2010, 10:09 AM
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PLS-Tx PLS-Tx is online now
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Quote:
Originally Posted by Patriot Services View Post
When you say "we" I assume you have a partner. LLC is better geared to partnerships. Contrary to what you may read here there is no tax benefit over either one. LLC's seem to be more popular these days. I created mine online very easily for a few hundred dollars. They took care of everything including listing the dba in the newspaper.
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No partner, the we would be my wife and myself.
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Old 10-16-2010, 10:24 AM
ratfink ratfink is offline
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From what I can gather the big difference between the two is that (both C & S) Corps allow public shareholders while LLCs do not. If you don't plan on having shareholders you are likely to want a LLC. But this is probably something you should discuss with a tax attorney.
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Old 10-16-2010, 11:43 AM
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Turf Dawg Turf Dawg is offline
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I just keep chugging along as a DBA but should probably do the same. Let me know what you decided to do and why.
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Old 10-16-2010, 02:25 PM
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Patriot Services Patriot Services is online now
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DBA is great until you screw up, get sued and your insurance gets maxed out. Without being incorporated everything you own or will earn can be taken in a lawsuit. Just like insurance it is a must have to run a legit operation.
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Old 10-16-2010, 02:35 PM
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Lefet Lefet is offline
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Quote:
Originally Posted by PLS-Tx View Post
No partner, the we would be my wife and myself.
Same situation here, wife and myself. Went with LLC. LIMITED LIABILITY....
Was told it was easier to keep the business and personal assets seperate.
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Old 10-16-2010, 02:59 PM
circlelawn circlelawn is offline
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I would recommend filing as an S-Corp. The benefits of the s-corp over the LLC is with a s-corp you are able to issue stock. Also it is a good way to set it up if you ever plan on selling the business. Issuing stock is a good way to expand your business when you begin to grow. Filing fees are about the same amount as an LLC.

On a side note, get rid of the DBA asap. You have no protection between your business and your personal assets. So if something happened and you were sued, you could lose your house, personal cars, savings, ect.
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Old 10-16-2010, 03:04 PM
fastlane fastlane is offline
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[QUOTE=Patriot Services;3757956]DBA is great until you screw up, get sued and your insurance gets maxed out. Without being incorporated everything you own or will earn can be taken in a lawsuit. Just like insurance it is a must have to run a legit operation.

I've had as s corp more than 35 years. If I remember correctly. If you are the only stock holder and you are the one that screwed up the corp does not protect you 100%. You get sued. Talk to an lawyer.
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Old 10-16-2010, 05:07 PM
ratfink ratfink is offline
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The truth of the matter is that incorporating isn't going to help you much with screwups causing actual damage, they really aren't designed to do that.
So long as it can be shown that you personally had a part either in the act or planning of a reckless event causing the damage you personally can be on the hook either partially with the company or wholly without. If that is what you are afraid of you need insurance.

What a corp or LLC is good for is building a financial wall around the business. So a failing to pay a supplier will not end in them being able to put a lien on your home. Things like pay disputes, genuine accidents, etc also have a hard time piercing the corporate veil.
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