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Old 06-22-2011, 01:58 PM
tkenned6 tkenned6 is offline
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Need Serious Help

Hey guys, I was wanting to get help and opinions on whether to form an LLC or get my license as a partnership. I'm doing this with a friend and we came up with a way of doing business and handling finances that satisfies both parties. Im really needing help with tax side of things and what the differences are.
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Old 06-22-2011, 02:07 PM
tkenned6 tkenned6 is offline
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Also, me and my partner will be the two owners and also the only employees so how do we go about paying ourselves and handling those taxes?
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Old 06-22-2011, 05:40 PM
Greenery Greenery is offline
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Have you done a search on partnerships on this site? I think you should read a little about others experiences with partnerships.
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Old 06-22-2011, 06:38 PM
tkenned6 tkenned6 is offline
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Quote:
Originally Posted by Greenery View Post
Have you done a search on partnerships on this site? I think you should read a little about others experiences with partnerships.
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I have and I know that most dont go well. For us this seems to be the best approach. We've been doing this for about a month as a test trial and so far it seems we can make decent money. We both know who handles what parts of the business and we share the profits accordingly. Whether that will change is to be seen but i figure we can give it a try.
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Old 06-24-2011, 03:22 PM
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KeystoneLawn&Landscaping KeystoneLawn&Landscaping is offline
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I think you are asking for trouble with a partner. A month, thats not long enough to know if you like a new pair of boots let alone a partner! How old are the two of you? I see you do weed control. Are you licensed for that? Who handles which part of the business and share profit accordingly, hmmm. So what if his part of the business makes a million and you make ten dollars, how does that work? If I were ever CRAZY enough, not to mention stupid, to have a partner I think it would go more like the following. Both partners work as hard as possible to earn lots of money for the business. Each person receives an equal salary after the business pays for all expenses. Can you see where just those two sentences can lead to disagreement?
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Old 06-24-2011, 04:40 PM
GainesvilleLawnscaping GainesvilleLawnscaping is offline
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Bad idea. Better to have a high paid employee than a partner. It won't work and will get ugly. Even if you pay him the same as you, have him as an employee.
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Old 06-24-2011, 06:38 PM
tkenned6 tkenned6 is offline
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Okay we're both 20, both in school and work other jobs but would like to do this to cover our expenses and what not. Basically be on our own schedule. I don't know where the weed control came from, I must have accidentally have clicked that as I'm not licensed or gonna be for that. As far as why I wanted to do a partnership is that rightn now we are using my grandparents residential equipment but plan on in the fall or before next spring buying used or financing some new commercial mowers and buying handhelds and an enclosed trailer. Having him as a partner gives me another person to help with paying for all this. With us using my stuff and me doing our accounting and bids, he basically handles the marketing and got us alot of clients from a family friend. We both work just as hard on getting things done. With that being said right now we are splitting the profits 70/30. And all of this has been discussed and both are ok. And we are licensed and insured
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Old 06-25-2011, 08:58 AM
GainesvilleLawnscaping GainesvilleLawnscaping is offline
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The person getting 70 should be owner, the person with 30 should be employee. If you become partners I'd say there's a 90% chance you two won't not only be partners anymore in a year or two, but you probably wont be talking to each other anymore either. Use this board for advice. When every person says the same thing, it's prob true.
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Old 06-25-2011, 01:54 PM
Rick111 Rick111 is offline
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The laws for LLC's are governed by the state so it all depends what state you are in as to how it is handled. I met with a business attorney for consultation before proceeding and he didn't charge me for the initial visit. I was trying to figure out whether to be inc. or llc. Personally speaking I would not go into business as a partnership or llc with anyone else. I made that mistake at your age and regretted it.
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Old 06-25-2011, 05:51 PM
GainesvilleLawnscaping GainesvilleLawnscaping is offline
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Originally Posted by Rick111 View Post
Personally speaking I would not go into business as a partnership or llc with anyone else. I made that mistake at your age and regretted it.
It's crazy how many of us have done the same. Sure wish we had a message board like this to consult to for advice when we were younger!
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