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  #1  
Old 04-01-2013, 10:38 PM
nick2765 nick2765 is offline
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Join Date: Jun 2011
Location: Long Island
Posts: 82
L.L.C vs D.B.A

Hey guys, will thank you all in advanced, my question is that are landscape companies required to file as an L.L.C? I want to be 100% legal and legit this season. People have said to do a D.B.A? How does it work and what is the difference? I'm so lost and don't even know where to start. Thanks guys!!
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  #2  
Old 04-02-2013, 07:33 AM
krzys555 krzys555 is online now
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there are a couple main differences. but in the end either one would be fine.
dba will cost about 30-50
a llc will cost anywhere from 400-1200 or more depending if you do it yourself or have a lawer do it
you can get insurance and a license on either one.
you have to pay taxes on both.

the differences.

take this situation.
you throw a rock with the mower, hit someone and it forces them to cut there leg off.
your general liability will cover you. but what if they want more, much more.
if they win against you in a lawsuit with 5 million more in there favor what do you do.
with a dba you need to pay it because the dba does not protect you.
with a llc you pay whatever is in your bank account, and close up shop.
you open up a new llc, because they can not go after you personally.

insurance with a llc might be cheaper, both gl and auto.
the biggest difference is taxes. talk to a cpa
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  #3  
Old 04-02-2013, 08:10 AM
JimMarshall JimMarshall is offline
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Join Date: Feb 2013
Location: NW PA
Posts: 252
Quote:
Originally Posted by krzys555 View Post
with a llc you pay whatever is in your bank account, and close up shop.
you open up a new llc, because they can not go after you personally.
Absolutely not true.

1) In a situation like this you would be forced to liquidate all your assets (truck, mowers, material, etc.) to pay.

2) Having an LLC doesn't prevent you from being sued. If you for a second believe that in that situation they wouldn't attempt to go after you personally as well you are really naive.
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  #4  
Old 04-02-2013, 08:37 AM
32vld 32vld is offline
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Join Date: Feb 2011
Location: LI NY
Posts: 3,007
Quote:
Originally Posted by krzys555 View Post
there are a couple main differences. but in the end either one would be fine.
dba will cost about 30-50
a llc will cost anywhere from 400-1200 or more depending if you do it yourself or have a lawer do it
you can get insurance and a license on either one.
you have to pay taxes on both.

the differences.

take this situation.
you throw a rock with the mower, hit someone and it forces them to cut there leg off.
your general liability will cover you. but what if they want more, much more.
if they win against you in a lawsuit with 5 million more in there favor what do you do.
with a dba you need to pay it because the dba does not protect you.
with a llc you pay whatever is in your bank account, and close up shop.
you open up a new llc, because they can not go after you personally.

insurance with a llc might be cheaper, both gl and auto.
the biggest difference is taxes. talk to a cpa
You should be able to get a lawyer to do a LLC for $300.

Your employee is the one ran the mower that causes the customer to lose their leg the employee because he did the deed and your corp can be sued. Not you.

You're the one that ran the mower that causes the customer to lose their leg your corp will be sued and you personally will be sued because like your employee you were the one operating the mower.

People hear the words corp only can be sued and assume that is the same with a LLC.

People ignore or do not realize that it is an LLC as in LIMITED Liability Corp.

Full fledge Corps have better personal liability protection. They do not use the word limited in their name. They are S corps and C corps.
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  #5  
Old 04-04-2013, 08:56 PM
nick2765 nick2765 is offline
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Join Date: Jun 2011
Location: Long Island
Posts: 82
For my business. I'm just mainly mow trim and blow, with occasional mulch jobs, cleanups, and thatching and aerorating. Would a D.B.A be suitable for that. And I'm a solo-op as of now
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  #6  
Old 04-04-2013, 09:27 PM
GreenGuysLC GreenGuysLC is offline
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Join Date: Apr 2010
Location: Killen Al
Posts: 264
A DBA will be a fine way to start. As you grow though.. be sure to consult with a lawyer about advantages to going other routes.
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  #7  
Old 04-05-2013, 01:21 PM
ryde307 ryde307 is offline
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Join Date: May 2009
Location: Shorewood, MN
Posts: 461
As others have said there are differences in the liabilities of each one. Best is consult a lawyer to help you make the proper choice in regards to that.
The other is differences in taxes. Again best to consult your accountant and decide which is best for you and YOUR situation.
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  #8  
Old 04-07-2013, 10:31 AM
205mx 205mx is online now
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Location: Nashville, TN
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An LLC can still have a DBA ......

Just throwing some sticks out there :-)
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  #9  
Old 04-07-2013, 10:34 AM
205mx 205mx is online now
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Location: Nashville, TN
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Quote:
Originally Posted by nick2765 View Post
For my business. I'm just mainly mow trim and blow, with occasional mulch jobs, cleanups, and thatching and aerorating. Would a D.B.A be suitable for that. And I'm a solo-op as of now
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A DBA isn't really anything. It means Doing Business As. But yes, that in my mind would be fine. I just operated my business under my name, doing business as such and such lawn co - for several years upon startup
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  #10  
Old 04-07-2013, 10:36 AM
205mx 205mx is online now
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Location: Nashville, TN
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An example is that I have a mowing service but also do fences. So my business is "Landmark Lawns, LLC" but for my fence company I have a DBA set up as "Landmark Fence Co" the DBA isn't linked to me, but to my business entity. So it says "Landmark Lawns, LLC, DBA (doing business as) Landmark Fence Co"
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