changing to INC.

Discussion in 'Business Operations' started by JTS Landscaping lawn, Apr 5, 2006.

  1. JTS Landscaping lawn

    JTS Landscaping lawn LawnSite Senior Member
    Posts: 378

    im a sole prop. right now and want to change that over to INC. was wondering were i would have to go to change this. thanks

    josh
     
  2. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    Consider going to an LLC instead, it would be closer suited for you as a sole proprietor, and the taxes are easier on an LLC.
    You'll need to go to the state corporation commission and file the paperwork and bring some cash (at least 100 dollar fee, bring 200 to be safe). Once you get your LLC certificate, re-license your business under the LLC's name.

    LLC = Limited Liability Company (or corporation, depends on state).

    p.s.: It's more expensive to get an inc than an llc, if not upfront, then over time.
     
  3. JTS Landscaping lawn

    JTS Landscaping lawn LawnSite Senior Member
    Posts: 378

    thanks i was looking online at both and the LLC does look better think that i will go with the llc
     
  4. Grass Dad

    Grass Dad LawnSite Member
    Posts: 10

    I have a friend who did the LLC thing (his cpa's advice). It was $625. $125 for the state and $500 to just let a lawyer handle it.:dizzy:
     
  5. FSully

    FSully LawnSite Member
    Posts: 81

    Have you talk with your lawyer and/or CPA about incorporating? Just curious on why you want to incorporate.
     
  6. JTS Landscaping lawn

    JTS Landscaping lawn LawnSite Senior Member
    Posts: 378

    i have employees and some one said that i had to incorp. to llc or inc. also so that incase something happens that they only go after my business instead of my personal stuff and all. something like that
     
  7. FSully

    FSully LawnSite Member
    Posts: 81


    Well, you can be sole prop. and have employees...just need to file for EIN number. Search your states website and see what is need to INC. or spend the money and have a lawyer do it for you.
    But with employess, no matter what sole prop, LLC, or INC. still have to file for that EIN number.
     
  8. lawnservice

    lawnservice LawnSite Senior Member
    Posts: 589

    this question comes up all the time
    "should I incorporate (S corp, C corp??) should I LLC?"

    with a good insurance agent...(liability, vehicle coverage) in this industry one could remain a sole prop. and keep things simple assuming your not a mega company who also owns real estate that the company works out of. (even if you did own real estate you could simply LLC that property and rent it to your business. Owning real estate is much more possible for liability if someone were to get hurt on that property...even a thief could sue you)

    I know many will argue this point.

    what i have a hard time understanding is the statement guys make when they say 'if i get sued they cant touch my personal stuff'

    chances are...if you get sued you lose the business...with out the business you lose your personal stuff anyway.

    probably the biggest liability you will have is an auto accident and insurance will cover that if the coverage is proper.

    if you're a homeowner you could file a home stead act declaration. cost is around $35 if you do it yourself, $200 if you have a lawyer do it for you, now your home will be protected from creditors. this can be done at your registry of deeds office.
     
  9. greenjack

    greenjack LawnSite Member
    from MI
    Posts: 20

    Is it important to become a LLC if you are a sole prop.? What are the benefits of becoming an LLC?
     
  10. lawnservice

    lawnservice LawnSite Senior Member
    Posts: 589

    the only true benefit is that your personal stuff will be protected from creditors

    my opinion...if one goes into business thinking he may have to screw his creditors....he shouldnt be in business
     

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