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Discussion in 'Business Operations' started by ChadA, Jun 26, 2005.

  1. ChadA

    ChadA LawnSite Senior Member
    Posts: 521

    I was talking with a friend of mine who is in real estate and he mentioned something about me becoming a vendor for the property management part of the company he worked for. Only thing I would need is to get incorporated. I'm already licensed and insured and everything else they wanted.
    Are there any benefits or drawbacks of being incorporated over being a sole proprietorship.
  2. marko

    marko LawnSite Senior Member
    Posts: 963

    Talk to your accountant. He knows many more details that we dont about your financial position. Tax situation would be different. Can't tell you if its worth it or not just to get an account.
  3. CutNLawns

    CutNLawns LawnSite Member
    Posts: 184

    I went ahead and did the incorporated thing from the get go JIC. Dropped by the lawyer with my info and $500 and a few weeks later I am completely official with the state and the company set up The best thing is to talk with your accountant and see what needs to be done.
  4. HK45Mark23

    HK45Mark23 LawnSite Member
    Posts: 200

    Get on line to your state's Secretary of State. You should be able to down load a PDF file of the form to incorporate your business. Then you can fill it out on your computer and print it. Send it in with a money order (here in Indian it is only $90.00) and wait about a month for it to be approved and recorded.

    Make sure you have researched the Secretary of States files of business names. If your name is already taken or if it is too close to another business’s name you will not be granted a corporate status.

    Also you will need a FIN Federal Identification Number and a TIN State Tax Identification Number.

    Go for the Sub S Corporation. You will automatically be a C Corporation until you file a form with the government to elect to be a Sub S.

    Any good accountant should be willing to explain the form over the phone briefly and it is so simple you should not have to have it prepared by an attorney for $500.00.

    I did mine for less than $100.00 postage and all.

    Make sure you don’t forget to file the sub S, there are tax advantages if you do.

    Make sure you get your state and federal tax id's. If you already have them you will have to inform the state and feds to the new status and name. You may even have to close those accounts and opening new tax accounts. Your banking will change. You will need new bank accounts reflecting the Inc. status.

    No matter what you do you will not be able to cash a check made out to your corporation personally. In other words if you walk it to a bank and try to cash it and you don’t have a business account there for that corporation but the check is drawn on that bank you will be refused. You will not be able to just deposit a check to the corporation in you personal account or you present business account, it is a federal law.

    You will have to open a business account in the name of the corporation.

    Get on line there is a lot of information on incorporating and don’t forget to make your quarterly tax estimates. It is jut to easy to do it on time. Just fill out a small form like a deposit slip and mail it. Wow it is done.

    Good luck!!!
  5. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

  6. CutNLawns

    CutNLawns LawnSite Member
    Posts: 184

    Simple...filling out the paper work is simple but actually learning about what exactly you are filling out takes time. Filing with the state, filing with the city, filing with the county, what to send in?, where to send it?, what do i do next?, is it done correctly? Setting up by laws..how? All this takes time and can be very confusing at times. There are somethings to me that are worth spending a little green to let the professionals do it correctly the first time. Kinda like those that hire people to mow their lawns. How hard is it to mow a lawn? If you don't have the time and you want it done right with out worry you call a professional to mow it. In the time it would take me to learn exactly what I was doing and feel comfortable about it I made well over $500 while someone else did their job. JMO!
  7. HK45Mark23

    HK45Mark23 LawnSite Member
    Posts: 200

    There are many books at the library that deal with incorporation procedures, benefits and features. There is nothing you need to do locally with you corporation. You must register in every county as a business but you incorporation lawyer has nothing to do with that. Again study a little about incorporating. Don’t use any other entity other than an S corp.


    Check out this site, it is the PDF of the Indiana articles of incorporation, once you see it you will know that you can’t mess this up.

    You fill out your business name and address, your name and address, number of shares of stock Don’t forget to fill out the dates, print it sign it. Then ship it. That is all there is to be come a corporation period. There is not local registration. Every business has to register their assumed business name in every county and city any way. Some have city, county or state licenses and pay taxes to the specific entity in question. This has nothing to do with a corporation, all business has to register and it only cost $5.00-$15.00. It sounds like maybe you don’t understand the purpose of the corporate entity if you think that you need a lawyer to do it so it is right.

    Why would one want to be a corporation? If you can’t answer that then don’t do it. What are the benefits to being a corporation? What does it mean and how does it protect you.

    Once you commit to this there are some legal things you need to know in order to run it successfully. But it is not necessary to have a lawyer actually do the paperwork that takes 5 min to fill out and print your self. They will and charge you $500.00 for 5 min of their time and one sheet of paper.

    If you read some books talk to your accountant and then get a free consolation from a lawyer to feel out the benefits and procedures you will be able to make an informed decision to do it or not. Then just do it and don’t waste any money.

    For me at the top if the form I checked the left box. I also decided to have 100,000 shared all though a lot of people only have 1,000 or so.
  8. CutNLawns

    CutNLawns LawnSite Member
    Posts: 184

    Completely agree with you and I am not saying that you must get a Lawyer to do it. Only stating that is how I did it. I would rather spend a few bucks and spend 5 min of MY time on the subject so I can spend MY other time making $$$. Reading up on incorporating for me is TIME where I am not making $$$, Free consultations with the lawyer is TIME I'm not making $$$, talking with the accountant is TIME I'm not making $$$, registering locally is TIME I'm not making $$$. This is just the way I looked at it for my situation at what I had on my plate at the time. I would gladly pay $500 to a lawyer while I do a $1000+ install job vs. loose the job to do research and running around to save a couple hundred bucks. I've been a Manufacturing Engineer for 10+ years and watch companies all day long spend quarters to save nickles! Just the way i look at things!
  9. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    That is incorrect information as you are NOT using an "Assumed" name once you Incorporate. An "assumed" name is a D/B/A...Doing Business As...that is for business that are 1) a Sole Prop but using a name for the business such as Sam Smith DBA Smith Mowing or 2) an INC that uses a name different from the Registered INC name such as Smith INC but goes by Smith Mowing. It then becomes an INC using an "assumed" name and Yes both would have to register but ONLY in the County the business is headquartered in......HOWEVER if the INC name is also the business name as 95% of them are such as Smith Mowing, INC and that is also the name the business goes by then NO you do not have to register in any County as the INC is covered State wide. You do however have to Buy a Business License in Every County/City you do business in in most cases.
  10. HK45Mark23

    HK45Mark23 LawnSite Member
    Posts: 200

    Even though you are incorporated, you still have to register you name in every county you wish to do business in.

    The form is called a “Certificate Of Assumed Business Name” and yes you must register.

    Every business from John Smith DBA as XYZ Mowing to ABC Incorporated Mowing must register. That would apply to all Business, DBA, Partnerships, Corporations etc…

    Many parent corporations have subsidiaries or divisions that go by different names and never do you see the corporate name in the title of the sub business.

    But never the less incorporated or not you must register your name in each county. It is only $9.00 here and takes 5 min to fill out register, get a receipt and copy.

    Please stop spreading diss and miss-information, I am a corporation and I have many acquaintances who guided me through the process, I did it my self with the guidance of a competent lawyer and accountant.

    Also; please never impugn my reputation. I was not wrong.

    Unfortunately there is one fallacy concerning this fact. It is correct that it is not necessarily an assumed business name but the county still requires you to register the Certificate Of Assumed Business Name regardless. Again it has nothing to do with your business entity or status. I have several here for the many counties I am registered in and that I do business in.

    I actually have 6 businesses running under one parent corporation and each subsidiary has its own name. I also know of several companies named one name but really are owned by a totally different corporation. Matter of fact they are corporations owned by corporations. Both parent and subsidiary must be registered separately.

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