Dba, Llc, Inc

Discussion in 'Starting a Lawn Care Business' started by GOTLAWN, Feb 27, 2007.

  1. GOTLAWN

    GOTLAWN LawnSite Member
    Posts: 10

    Great board thanks for the help on my other questions...

    Moving forward, I've been reading about the above and can't make a decision. Which one should I go with. I mean, if I have a Mil for liability and 25-50k for equipment, I should be protected right?

    What are the real pros/cons of each.

    Thanks for the time and help
     
  2. Total.Lawn.Care

    Total.Lawn.Care LawnSite Senior Member
    Posts: 841

    LLC & Inc allow you to seperate your business from your personal affairs 100% (in theory). This means that if something happens (accident, bad debt, etc.) any judgement against you cannot go any farther than the business. Your personal house, finances and vehicles would not be affected.

    Depending on how your business is set-up will determine if you want to do an LLC or Inc, but I encourage at least one of the two. LLC is easier and simpler. Inc (in the form of an S-corp) would also fit most small business models, but there is a little more involved and more requirements to conform to, however, nothing that you cannot learn and take care of.
     
  3. Jake Wolf

    Jake Wolf LawnSite Member
    from NYC, NY
    Posts: 37

    Look at your assets. Inc provides the most protection and is easiest to sell down the road.
     
  4. mattfromNY

    mattfromNY LawnSite Bronze Member
    Posts: 1,581

    Not to hijack your thread, but, My wife and I have been talking about doing the S-Corp., then putting the business in her name, so I can collect unemployment in the winter. A couple people I've talked to have done this. I'd be interested to hear opinions, good or bad, on this, or if anyone else has done this.
     
  5. Total.Lawn.Care

    Total.Lawn.Care LawnSite Senior Member
    Posts: 841

    I think this cheats the system. You own the company, you run the company. Find a way to either make money during the winter, or to make enough money that you can support yourself through the winter. If you use the government as a crutch, then you are not 100% legit and will not earn my respect.

    If this offends, then oh well. I am working a full time job while trying to build my business, and trying to diversify my serivces to have income all year long. You should do the same.
     
  6. terrapro

    terrapro LawnSite Bronze Member
    Posts: 1,234

    lol....from what i understand with an s-corp even though you "own" and run the business you are considered an employee but you have the ability to opt out of paying unemployment on yourself. so just fill out the UIA forms and start paying on yourself then collect in the winter. i dont see any reason to give your business to your wife:dizzy:
     
  7. Total.Lawn.Care

    Total.Lawn.Care LawnSite Senior Member
    Posts: 841

    You might be an employee of the company, but you are also a Corporate Officer. I am not sure that a company officer can claim unemployement during a comapnies off-season.

    On another note, I cannot beleive that you are encouraging him to crutch on the government and take welfare money that yours and my taxes help support.
     
  8. Eakern & Dog

    Eakern & Dog LawnSite Senior Member
    Posts: 431

    I'm no investment or financial wiz, but would'nt it be just a beneficial to him to just set the money aside that he would normally pay the government for unemployment insurance and invest in some kind of account that he can draw from during the down months ? Does anyone here know what the unemployment's insurance rate a corp pays out to the government for employees ?
     
  9. mattfromNY

    mattfromNY LawnSite Bronze Member
    Posts: 1,581

    I dont take offense to anyones comments. I am not a welfare collector. In fact I just mailed out $16000 bills for February snow plowing. I am not looking for a crutch, it was a question stemming from a diner conversation with several other area contractors, some of them in business 20 + years. A couple of them are doing just what I asked about, and I wanted to see if anyone on here had experienced any pros or cons with it. I dont see it as cheating anyone as long as we are paying unemployment all year long (as we would have to), I already carry all the insurance (Commercial on all equipment, 2 mil. liability and workers comp. on myself). I am not looking for handouts, just trying to be as efficient as I can in the long term.
    As far as giving the bus. to my wife, that doesnt excite me one bit, it was just mentioned to me from a payroll service (paychex), as a way to go about this whole plan if we chose this route.
    Thanks
    Matt
     
  10. terrapro

    terrapro LawnSite Bronze Member
    Posts: 1,234

    yes you can collect, i have in the past during hard times with no problem. i am not encouraging him im just informing. i do not agree on collecting unemployment when you are perfectly capable of making money. i have learned that there is lots of work out there you just need to diversify. to each thier own
     

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