I just want to be legal!!!

Discussion in 'Starting a Lawn Care Business' started by horizonmowing, Sep 2, 2006.

  1. horizonmowing

    horizonmowing LawnSite Member
    Posts: 81

    Hey everyone. I need your help. I'm 17, going to be 18 in about a week. I have been mowing 10-14 accounts all season, mulching, tree work...ect. I have roughly 10-12 grand invested in the company ie- truck, debris loader, blowers, mowers, trailer ect. The company has a trade name (under my dad) but will soon be under my name. I know that I need to start paying taxes on this money (that is only fair) and I am going to have an employee, so the insurance will have to be set up to cover Virginia workers comp. What I am trying to say is that I really want to become a cooperation... BUT, the state of Virginia is telling me that I need to have a class C contractors license if i do $1000 worth or work and a given address over the course of a year. "No problem" I think to my self, "I'll just go get a class C license." WRONG... now they tell me that I need to have two years of experience with another company to get this class C license. Well, I cant do that!!!! I really don't want to work for someone else, that is why I am starting a company. Any way, are most of you guys out there sole proprietorships, or cooperation's; and is there anyway to get around this class C license problem that I am having. Also, if i do a mulch job for a Grand (not hard to do) and I am a sole proprietorship, am i braking the law? THANK YOU... PLEASE HELP
     
  2. J&R Landscaping

    J&R Landscaping LawnSite Fanatic
    Posts: 5,097

    Do you need the license to be a registered business of any kind or just to be registered as a corporation.

    My accountant said it would be more cost effective (at the moment) to just be a sole propriotorship. He said in a few years, I could always upgrade as my company expands.
     
  3. JJLandscapes

    JJLandscapes LawnSite Senior Member
    Posts: 682

    you need 5 years experience here to get a license...you are lucky its only 2 put a landscaping name and phone number as the previous employer and give them your friends or dads number and tell them to say u worked for him for a few years and did good job.... if they need w2's like in NY then say you are starting the new company because your old boss sold his company and moved somehwere and all you need is a notarized paper

    illegal but should work for you.. its stupid u are running a small landscaping business u cant just stop and go work for someone else for 2 years
     
  4. fulano

    fulano LawnSite Senior Member
    Posts: 319

    I thought that was funny when the title of the thread is "I just want to be legal!!! "
     
  5. horizonmowing

    horizonmowing LawnSite Member
    Posts: 81

    From what I am told, I need the class C to register as a cooperation but not if I am going to be registered as a sole proprietorship. But, if I do over $1000 of work at one house; by law, I am required to have the Class C. It really seams like state is making it impossible for me to be legal unless my landscape jobs are less the $1000....and that is including materials.
     
  6. Roger

    Roger LawnSite Fanatic
    Posts: 5,916

    It sounds like your understanding of business entities is skimpy. Somebody suggested being a sole proprietorship, and you return to the notion of corporation (yes, it is corporation, not cooperation -- two entirely different words). What are the requirements for sole proprietorship? The states's requirements are probably different. I don't recall anybody ever speaking on LS about needing 2/5 years experience for a sole proprietorship. What are the advantages for you to incorporate at this point?

    If you are confused, then you need the services of a good CPA qualified in working with entrepreneur and small business setups.
     
  7. horizonmowing

    horizonmowing LawnSite Member
    Posts: 81

    CPA's are expensive!!! All I am saying is that no matter what I do, I am technically breaking the law. I DON'T need the class C the be registered as a sole proprietorship, but as soon as I do over $1000 in landscaping, I am required to have the class C regardless of how I am registered. I want to be a corporation to protect my trade name, and any assets that I have (whenever that is) and the inc. at the end of the name looks cool.
     
  8. mowingtowing

    mowingtowing LawnSite Member
    Posts: 226

    Who is telling you that you need a Class C license?

    This is copied from the VA state code which says to me that contractor means someone who does work on structures/buildings.

    Code of Virginia, ยง 54.1-1100. Definitions.
    "Contractor" means any person, that for a fixed price, commission, fee, or percentage undertakes to bid upon, or accepts, or offers to accept, orders or contracts for performing, managing, or superintending in whole or in part, the construction, removal, repair or improvement of any building or structure permanently annexed to real property owned, controlled, or leased by him or another person or any other improvements to such real property.
     
  9. horizonmowing

    horizonmowing LawnSite Member
    Posts: 81

    I called the Virginia State Cooperation located in Richmond. From what I was told, landscape jobs require a class C license. I made it very clear to them that I am doing LANDSCAPING, not building a house or any type of structure for that matter. The lady that I spoke with seemed to stress the value of the jobs ($1000) not so much the type of work I am doing. PS. I called twice, same answer, different people.
     
  10. mowingtowing

    mowingtowing LawnSite Member
    Posts: 226

    I looked a little closer at VA's DPOR site and the application for a Class C license. Looks like you're right. You need the license to do landscape work over $1,000 (doesn't matter if you are a corporation or a sole proprietorship or partnership, etc). And you do need 2 years of experience. Looks like your only option is to not do any jobs over $1,000 for the next two years. Then you can apply for the license when you have references.

    Why do you want to incorporate when your business is so new? It may not be cost efficient for you right now. It puts you under a whole other mess of regulations.
     

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