becoming an LLC

Discussion in 'Business Operations' started by barefootlawns, Feb 19, 2006.

  1. barefootlawns

    barefootlawns LawnSite Member
    Posts: 60

    I am thinking about changing my company from a so properer to a LLC so if anything should happen i wouldn't'd lose everything what do you guys think about this
  2. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Posts: 946

    I would say it is a good idea. OF course then again look at my company
  3. barefootlawns

    barefootlawns LawnSite Member
    Posts: 60

    but what are the benfits to a LLC and what does it cost?
  4. drsogr

    drsogr LawnSite Bronze Member
    Posts: 1,275

    You need to go down and talk to your local SBB association about this. I talked to a lawyer and he told me really, there is no good reason for me to as of right now. As a sole proprietor you have certain exemptions to what they can take. Most of what I own falls within the exemptions. Not to mention if you are at are still responsible. No matter how your company is classified.

    To become an LLC there is certain things that you will need to do from an initial cost stand point, as well as the way you act in a business compacity. IE seperate checking accounts, signing your business name ahead of your name, not writing personal checks out of your account.

    Unless you have a lot of personal property, or business property, or have more than a couple employees I would take the money and buy better insurance with it.
  5. Ky.Smoke

    Ky.Smoke LawnSite Member
    Posts: 45

    I filed and became an LLC last year. Along with some legal reasons I also thought it was kinda more professional sounding in peoples eyes. I also operate two business under one LLC name but only file one set of taxes. You should really check with you state. It only cost me like $50 and then I have to file an annual report and pay $10 more. In the grand scheme of things I dont thik that is very expensive.
  6. drsogr

    drsogr LawnSite Bronze Member
    Posts: 1,275

    I do know LLC's Vary from state to state. They are not nearly as universal as other classifications.
  7. lawnspecialties

    lawnspecialties LawnSite Silver Member
    Posts: 2,513

    How coincidental. I filed last week. My lawyer called me Friday and we meet this Wednesday to sign the papers. I might could have done it myself but I didn't want to screw it up or something like that. It's gonna cost me $500 for the lawyer's fee and $125 for the NC filing fee.:hammerhead:

    This year I'm going to be hiring some help or some more regular subcontracting out so I thought it was the right time.
  8. Tadams

    Tadams LawnSite Senior Member
    Posts: 788

    I asked my accountant about turning my business into a corp. so that if anything happened I wouldn't loose everything. She told me that it was like that in the past but within the last couple of years lawyers have been finding loop holes so thaey can still sue you and take your personal property. She advised me to take out more liability insurance to cover my A@^ !!
  9. lawnboyblake

    lawnboyblake LawnSite Member
    Posts: 89

    Yup, thats EXACTLY what my accountant said last year. At least I now know that he know's what he's talking about......
  10. gqnine44

    gqnine44 LawnSite Senior Member
    Posts: 501

    Yeah if you are the person to commit the tort then they can still sue you personally. They might not win thanks to the Corporation's shield but they have been winning cases around the country. I think this is bogus. Businesses need to be protected. After all small business is what make the economy truly function.

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