business Startup

Discussion in 'Business Operations' started by fire46, Nov 3, 2007.

  1. fire46

    fire46 LawnSite Member
    Posts: 5

    I have a question about how to start up my business. My main concern is wich direction to go as far as llc inc etc. I am going to be the sole owner and was wondering for some advise in wich direction to go. Advantages / disadvantages etc. Looking for some good feedback thanks guys.
     
  2. landscaper22

    landscaper22 LawnSite Senior Member
    Posts: 829

    IMHO (which may not be worth much), I would not worry about becoming an LLC or INC for some time. How long have you been in business? About how many accounts do you have? Any other employees besides yourself? If you are still a small LCO working mainly by yourself, I would not even worry about incorporating now. Becoming an INC may be beneficial after you start making like 150,000 gross and 80,000 net. It would allow you to seperate yourself from the business and pay yourself a salary, which would mean you may save some tax dollars. LLC would make more sense for a small LCO. Under LLC there are no tax advantages, but It mostly protects you from lawsuits, however not totally. You can still be sued for your actions, but if you have an employee that does something crazy, and someone wants to sue, they can't sue you for your house or other personal things. They can sue the business. Which means your business is gone. So you still lose.

    Just make sure you have general liability insurance no matter how small you are. That will protect you for at least $1 mil. Just make sure the ins company is clear about all the different services you provide. Like mowing or mowing and landscaping,etc...because the rates and coverage will vary...
    If you are growing and have a couple of full time employees you may want to consider incorporating then.
     
  3. fire46

    fire46 LawnSite Member
    Posts: 5

    Thankyou for your input very helpfull. Couple of answers to your questions. Has been just me for about 4 years small stuff after work. Reason why i asked the question is next spring plan to go full time hiring 2 people. how hard is it to switch once i get started say from LLC to Inc.
     
  4. landscaper22

    landscaper22 LawnSite Senior Member
    Posts: 829

    That I don't know. The info I gave you was from talking with my lawyer. I would maybe ask a lawyer. It would probably be a pain to switch. Not to mention you would have to pay more money to do it. I would ask a lawyer his/her opinion and go with that. Going LLC now and INC in a few years probably would not be worth the extra trouble.
     
  5. fire46

    fire46 LawnSite Member
    Posts: 5

    thanks for your response and all the info
     

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