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  #1  
Old 12-13-2010, 10:35 AM
kgcs kgcs is online now
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Location: Milledgeville, GA
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Going Legal

I started my business when I was 14 years old. Back then I would illegally drive my dads truck to jobs in my neighborhood. Now I have 11 accounts and I am about to be 16 and I will be legally driving to the lawns I service. Since I will be driving legally and becoming more like a professional service, I believe I should also run my business legally. I am thinking about incorporating as an LLC. Is there any benefits/drawbacks to doing this. I know the biggest draw back is taxes, but thats just something you got to live with. Also how do you transfer personal assets to the LLC. I want to "sell" my equipment to the LLC at full market value and I want to put this as an expense on my taxes. Is this possible?
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  #2  
Old 12-13-2010, 11:06 AM
xclusive xclusive is offline
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Everybody has there own opinions on what to set the business up as. Personally mine is set up as a LLC. Do a little research about the different types of business and then try to contact a business lawyer to see what they suggest. I would also suggest contacting an accountant in regards to selling your equipment over to your business. They should be able to provide you with the proper way of doing that since every state has their on rules and regulations. Some states may require the business to pay tax on the equipment. You personally as the seller might be required to claim the sale as income when you file your taxes. This is all dependent on your states rules and regulations so like I said I would recommend talking to an accountant.
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  #3  
Old 12-13-2010, 11:07 AM
gasracer gasracer is offline
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Not sure you can do it being under 18. Check with a local accountant or lawyer.
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  #4  
Old 12-13-2010, 11:28 AM
kgcs kgcs is online now
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Originally Posted by gasracer View Post
Not sure you can do it being under 18. Check with a local accountant or lawyer.
I have already looked at state and federal laws and there is no age restriction on LLCs. I guess the government doesn't care how old you need to be to give them money.
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  #5  
Old 12-13-2010, 11:42 AM
gasracer gasracer is offline
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Unless you have a partner a LLC isn't that useful. You can still be legal being solo.
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  #6  
Old 12-13-2010, 11:50 AM
kgcs kgcs is online now
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Originally Posted by gasracer View Post
Unless you have a partner a LLC isn't that useful. You can still be legal being solo.
The problem with a sole proprietor is that your not financially protected. If you shoot a rock out of your mower and seriously injure someone they can take everything you own. With an LLC they can only take your business, not your personal stuff.
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  #7  
Old 12-13-2010, 11:55 AM
gasracer gasracer is offline
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That has been debated here several times between S-corp,C-corp,LLC,solo. They can still sue you. That is why you carry 1 million in insurance....
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  #8  
Old 12-13-2010, 12:05 PM
kgcs kgcs is online now
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Originally Posted by gasracer View Post
That has been debated here several times between S-corp,C-corp,LLC,solo. They can still sue you. That is why you carry 1 million in insurance....
I was not saying they couldn't sue you. Your just better protected if they do. I do agree with you about insurance. I got a quote for 600,000 for $300 a year. But back to my original question, can I sell my personal assets to my LLC then write it off?
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  #9  
Old 12-13-2010, 12:13 PM
gasracer gasracer is offline
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You can but I think you may have to tax it both as the buyer and the seller. Check with you tax attorney or accountant to be sure.The quote sounds cheap enough,is that just for liability? I would get fire and theft also.
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  #10  
Old 12-13-2010, 12:17 PM
kgcs kgcs is online now
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Originally Posted by gasracer View Post
You can but I think you may have to tax it both as the buyer and the seller. Check with you tax attorney or accountant to be sure.The quote sounds cheap enough,is that just for liability? I would get fire and theft also.
I will probably end up just selling it to the LLC for a $1. I will ask an accountant later.

Its just liability, how much extra is theft and fire?
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