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  #11  
Old 09-17-2013, 08:38 PM
205mx 205mx is online now
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..Then he probably sold you on setting one up :-) J/k. they do provide protection.but its slim. a person sues your company for 750,000. your company has a 500,000 policy. they seize the rest of the assets for 50,000. there is 200,000 remaining. They could and likely would sue the board members. Who are the board members?
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  #12  
Old 09-17-2013, 09:32 PM
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Liberty Lawnworks Liberty Lawnworks is offline
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A single-member LLC affords you almost zero protection against torts based on your actions. If an employee does something, you have some degree of protection as long as you have kept your business and personal finances completely separate. In other words, your receipts for trimmer line doesn't have sodas for the kids on them, you're cutting a paycheck for yourself each week instead of just transferring random amounts of money to your personal account, etc. Unfortunately, a good lawyer can tear down most single-member LLCs out there.
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  #13  
Old 09-17-2013, 09:44 PM
Sonshines Sonshines is offline
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So if the "family business" is starting out on just mowing lawns (weed whacking/trimming), snow blowing, and working for banks w/ home repoes may not have any benefits on having an LLC? We will not be hiring outside of family.

In my state, it is $25 to send in to Sec of State for business name, or I can go the LLC route that would include the name being legalized. Will I also need an EIN?
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  #14  
Old 09-18-2013, 01:10 AM
CL&T CL&T is offline
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In most states you just register your business and name with the county clerk for like $15, get an EIN from the IRS and a sales tax number from the state taxation dept that gives you authority to collect sales tax (if you are required to collect sales tax on what you will be doing in your state). You then operate as a sole proprietor, the simplest way of doing business. As long as you pay your taxes on April 15 nobody will bother you.

So to answer your question nobody cares how your business is set up. I wouldn't waste any money until you are ready to go S corp or a full C corp and only an accountant can tell you that.
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  #15  
Old 09-18-2013, 04:25 PM
Sonshines Sonshines is offline
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Quote:
Originally Posted by CL&T View Post
In most states you just register your business and name with the county clerk for like $15, get an EIN from the IRS and a sales tax number from the state taxation dept that gives you authority to collect sales tax (if you are required to collect sales tax on what you will be doing in your state). You then operate as a sole proprietor, the simplest way of doing business. As long as you pay your taxes on April 15 nobody will bother you.

So to answer your question nobody cares how your business is set up. I wouldn't waste any money until you are ready to go S corp or a full C corp and only an accountant can tell you that.
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  #16  
Old 09-18-2013, 07:36 PM
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alexschultz1 alexschultz1 is offline
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Originally Posted by 205mx View Post
What Tax benefits?
The IRS Does not recognize LLC's.

It does not protect you or separate you and your company assets. Especially if you are a single member or you and your wife or you and your single business partner. I think I may have made a mistake going with an LLC. But for $300 a year I figure what the hell.
Um, yes it does, but to an extent. An LLC (limited liability company) won't protect you if you run someone over with your mower, but it will protect you if you underbid a $250,000 job and need to declare bankruptcy. I have no idea why people think that an LLC instantly protects your personal assets from legal situations that you are personally responsible for.
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  #17  
Old 09-18-2013, 07:38 PM
205mx 205mx is online now
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Originally Posted by alexschultz1 View Post
Um, yes it does, but to an extent. An LLC (limited liability company) won't protect you if you run someone over with your mower, but it will protect you if you underbid a $250,000 job and need to declare bankruptcy. I have no idea why people think that an LLC instantly protects your personal assets from legal situations that you are personally responsible for.
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  #18  
Old 09-18-2013, 07:44 PM
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Patriot Services Patriot Services is online now
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LLC are the latest way to incorporate a business with the greatest tax benefits. Allows for pass through taxation. Easy to have multiple partners added as well. A CPA will probably agree.
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  #19  
Old 09-18-2013, 07:47 PM
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Patriot Services Patriot Services is online now
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Quote:
Originally Posted by alexschultz1 View Post
Um, yes it does, but to an extent. An LLC (limited liability company) won't protect you if you run someone over with your mower, but it will protect you if you underbid a $250,000 job and need to declare bankruptcy. I have no idea why people think that an LLC instantly protects your personal assets from legal situations that you are personally responsible for.
I'm glad I'm not the only one that gets this. Case in point. What happened to Bernie Madoffs personal property? Was that protected by his corporation? The ultimate rule in this great country "you can sue anybody for anything"
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  #20  
Old 09-18-2013, 07:48 PM
RussellB RussellB is online now
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You guys are carrying this way to far and it is misleading. An LLC has a purpose and carrying the proper amount of insurance has a purpose. Together you have a legit company and for the most part are protected.
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