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  #11  
Old 12-13-2010, 12:22 PM
gasracer gasracer is offline
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Mine is close to $1,000 a year for everything. People will steal you blind. I have log chains through my big machines on my trailer. I have every piece of equipment related to my business insured even if I only use once a year or every day.
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  #12  
Old 12-13-2010, 12:54 PM
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Agape Agape is offline
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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.
Oh, i'm sure someone will be willing to accept his taxes lol
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  #13  
Old 12-13-2010, 12:57 PM
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Agape Agape is offline
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Quote:
Originally Posted by kevinkirbygmc View Post
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?
well in Oregon you can state the value of equipment already owned upon starting the business and write it off. according to my accountant.
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  #14  
Old 12-13-2010, 01:22 PM
xclusive xclusive is online now
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If you register as an LLC your personal assets are protected when you are sued. Even if you have a million dollar liability policy and some sues you for more than that then you dont have to worry about your personal assets being taken from you. Since you are only 16 I doubt that you have any major assets like a house, but it will also protect your parents assets too.

If you sell the equipment to the business for $1 and the IRS audits you and finds the equipment is worth more they will charge you interest and penalties on the difference. Its the same thing that happens when you sell a car much cheaper than it value, the buyer usually has to pay additional taxes on the value of the car not the purchase price. The IRS wants any and all money you owe them.
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  #15  
Old 12-13-2010, 01:26 PM
kgcs kgcs is offline
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Originally Posted by xclusive View Post
If you register as an LLC your personal assets are protected when you are sued. Even if you have a million dollar liability policy and some sues you for more than that then you dont have to worry about your personal assets being taken from you. Since you are only 16 I doubt that you have any major assets like a house, but it will also protect your parents assets too.

If you sell the equipment to the business for $1 and the IRS audits you and finds the equipment is worth more they will charge you interest and penalties on the difference. Its the same thing that happens when you sell a car much cheaper than it value, the buyer usually has to pay additional taxes on the value of the car not the purchase price. The IRS wants any and all money you owe them.
How would you recommend selling the equipment to the LLC?
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  #16  
Old 12-13-2010, 01:29 PM
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Agape Agape is offline
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How would you recommend selling the equipment to the LLC?
Highest fair market value as you will depreciate these.
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  #17  
Old 12-13-2010, 01:30 PM
xclusive xclusive is online now
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Originally Posted by kevinkirbygmc View Post
How would you recommend selling the equipment to the LLC?
Sell it to the LLC for the value of the equipment now, not when you first purchased it. If you use quickbooks for books then set up the sale as a fixed asset with a loan. Then slowly repay the loan back yourself over a period of time. It will also help with depreciation of the equipment when it comes time to do your taxes.
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  #18  
Old 12-13-2010, 01:35 PM
kgcs kgcs is offline
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Originally Posted by xclusive View Post
Sell it to the LLC for the value of the equipment now, not when you first purchased it. If you use quickbooks for books then set up the sale as a fixed asset with a loan. Then slowly repay the loan back yourself over a period of time. It will also help with depreciation of the equipment when it comes time to do your taxes.
Would I have to actually pay my self to transfer the equipment or could I do a Bill of Sale for the market value and sign it but not really transfer money?
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  #19  
Old 12-13-2010, 01:55 PM
xclusive xclusive is online now
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Originally Posted by kevinkirbygmc View Post
Would I have to actually pay my self to transfer the equipment or could I do a Bill of Sale for the market value and sign it but not really transfer money?
You could but depending on the what program you use for your books it might mess things up. I would suggest trying to meet with an accountant to get the technical details.
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  #20  
Old 12-13-2010, 04:04 PM
8rickyj 8rickyj is offline
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I still run my company as a DBA (doing buisness as) I have insurance but I am not currently having to deal with the headaches with taxes and things like that. I am going to hold out as long as I can till absolutely have too.
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