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  #31  
Old 01-08-2014, 11:51 PM
Middle Tennessee Lawn Middle Tennessee Lawn is offline
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What about tax burden of corporation tax rate is much greater
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  #32  
Old 01-09-2014, 08:31 AM
205mx 205mx is online now
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Originally Posted by Middle Tennessee Lawn View Post
What about tax burden of corporation tax rate is much greater
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LLC is not recognized by the IRS. You will elect to be taxes as a Corp or a sole proprietor.
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  #33  
Old 01-09-2014, 01:04 PM
32vld 32vld is offline
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Originally Posted by retrodog View Post
Llc will seperate you from your biz. I recommend in case you kill someone or get sued. As a dba they can take your assetts even personally as collateral. I am llc and I lease any equipment or real estate the biz uses to the biz, so technacally the biz doesnt really own anything.. it has tax benefits too
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Originally Posted by RussellB View Post
I agree with Retrodog. An LLC protects your personal assets. I know people that set up their own LLC but I utilized "My Corporation" to set mine up. Rather pricey but they set it all up (State and Federal) and I didn't have to worry about missing something in the process.

A LLC will not protect the business owner's personal assets that is working solo.

If a LCO has an employee. An the employee is on the job site working alone. And the employee F'up's. The customer can sue the employee because he did the F'up. And the sue the LLC.

Now if the LCO is working on the job and he does the F'up. The customer can sue the LLC as in the previous case and the owner the owner personally just as he sued the employee. So the owners personal assets will not be protected.

Plus there are no tax advantages to being a LLC.

You want and need full liability protection then you have to look into being a S or C corp.
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  #34  
Old 01-09-2014, 01:07 PM
32vld 32vld is offline
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Originally Posted by Sonshines View Post
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?

You will need a EIN whether LLC or DBA.
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  #35  
Old 01-09-2014, 01:11 PM
32vld 32vld is offline
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Originally Posted by Patriot Services View Post
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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We do not know how Bernie's business was set up.

Though even if it was an S or C corp. You are not allowed to keep monies earned from illegal activities. His personal assets were never his in the eyes of the law because he bought everything with stolen money.
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  #36  
Old 01-09-2014, 01:19 PM
32vld 32vld is offline
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Originally Posted by RussellB View Post
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.

It is not more legit then a DBA.

It has nothing to do with having the proper insurance.

It is not carried to far because people still claim that you can not get personally sued when you can.

Going to bed one night. Then the next day lose it all to a law suit when you were allowed to falsely think you were protected from law suites is a big thing.

The question of should I become an LLC is always asked by a guy starting out with no employees. He will be on the job site doing the work. There is no employee to pass the blame on. An LLC will not protect him from being sued and may lose in court.

I would bet that when he gets a helper and his is working with the helper and the helper does the F'up the owner can still get sued because the employee was under his direct supervision.

It still is a big issue because people that post here are still not aware that they can be held liable as an owner of a LLC.

Last edited by 32vld; 01-09-2014 at 01:24 PM.
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  #37  
Old 01-10-2014, 08:59 AM
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Patriot Services Patriot Services is online now
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I don't why people get into arguements over term definitions. The various categories of corporations were created by and defined by the IRS. They are the first, middle and last word in defintion. The IRS does not leave room for personal interpretation. IRS.GOV will answer all your questions.
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