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Husband & Wife seperate companys, both green related

Discussion in 'Lawn Mowing' started by olderthandirt, Feb 21, 2005.

  1. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Talked to my accountant today and he said it would work but needs more time to figure out the best way. And I have to speak to the attorney yet but, I want to set my wife up as her own fert and squirt co. and sub the work out to me. The equipment goes in her name and I would lease it from her along with a truck. Since she would not be doing any work except a few bids a yr she would could show a min. profit or loss. But somethings not right and I can't figure it out, anyone that can help :dizzy: What am I missing ? Yeah lisc. and insurence etc are already covered :D Just don't want to wait to to hear back from accountant and attorney

  2. all ferris

    all ferris LawnSite Bronze Member
    Posts: 1,307

    What is the point in doing this? I think I'm missing something. My wife takes all my money anyway :dizzy:.
  3. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    The point is the tax advantage. She would not show a profit for the first couple of yrs so all her expenses would be a write off. I would get a tax write off for the leasing of the vehichal and equipment, at a greater rate than if I just depreciated them. Plus there's the chance to double bid most new places, 2 diff co. with 2 diff prices :D Not saying its the most ethical thing but its not the worst, just getting 2 bites of the pie

  4. 65hoss

    65hoss LawnSite Fanatic
    Posts: 6,360

    Tax laws, CPA's and attorneys go hand in hand. People with the best setups are people that push the limits on this stuff. If its legal take full advantage of the tax breaks. IRS is taking full advantage of us, so its only fair to cut them out of as much as possible. The lawyers and CPA's need to make sure it can be done, then follow their advice fully.
    A friend of mine did something similar, not the same. It has worked good for him. I've considered it myself and may one day do it. It just requires I incorporate. Not ready to open that can of worms yet.
  5. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Since your wife will own the company, the federal government will consider it a minority-owned business...they are advantages to that such as low-cost loans, etc.
  6. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Something kinda along that line, I have a buddy who owns a chain of small retail stores whose dad is also a lawyer and what he does is he personally buys all of his INC.'s vehicles in his name on a personal loan and then turns around and leases them to his company. Says he gets a bigger tax break that way, but I don't really know all the exacts on it.
  7. Mudmower

    Mudmower LawnSite Member
    Posts: 102

    Exactly what I was thinking Rodfather. We are in the process of getting MWBE (Minority, Women Business Enterprise) certified. Talk about paperwork.................................................Everything is in wifes name. I know, I know, she holds all the cards. So what......

  8. Soupy

    Soupy LawnSite Gold Member
    Posts: 3,125

    That was the first thing to pop in my mind as well. It could help land some jobs, as well as get some grants to get started.

    There isn't anything unethical about working the system. It's being smart.
  9. marko

    marko LawnSite Senior Member
    Posts: 963

    Older than dirt,
    Sounds like you are figuring it out. I just Incorporated, girlfriend owns the business. She also owns another business and Im looking at something similar as soon as I get settled. It sound like you are on the right track though and I would list all the possibilities and your accountant should be able to tell you where to come out the best on each situation.
  10. cward

    cward LawnSite Member
    Posts: 190

    You are playing with some great tax savings opportunities. The easy way to plan it is to lay out all of your future expenses and which is the most beneficial for you and her. If you are paying (leasing from her) make sure her expenses offset the income. Way to go. Owning a business, more than a job, it's a mindset.

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