incorporated?

Discussion in 'Business Operations' started by Schlepie, Jan 25, 2003.

  1. Schlepie

    Schlepie LawnSite Member
    Posts: 165

    I have had so many business people and friends tell me " ya need to be incorporated, so if they sue ya , they can't sue you personally." Fact or Fiction?
    How many of you guys solo or even with one or two employees, are Inc. or LLC'd?

    Schlep
     
  2. Darb

    Darb LawnSite Member
    Posts: 182

    It does help protect you to some extent. My understanding is when you incorporate the business in a way becomes a legal entity (which is why when you incorporate you just can't quit and walk away like you can with some of the other forms of businesses). This entity acts as a barrier for you ... The protection is not foolproof. If you knew you were doing something you shouldn't have been doing then you are open to litigation. I recommend you contact a lawyer... they can give you all the ends and outs.
     
  3. John Allin

    John Allin LawnSite Bronze Member
    Posts: 1,489

    The biggest question to be answered (IMO) is - do you have anything that needs protected ??

    If you have no real assets (personally), or all your assets are tied up in the business - then the need to be incorporated isn't that great. It's when you have something to protect that the need becomes paramount. If you have already protected those personal assets in some fashion, then the need drops dramatically.

    Lawyers will all tell you "incorporate NOW". Of course, they charge for this service. A better person to ask is a wise accountant.
     
  4. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I would personally go with a LLC. I am going to do that this spring. Cost about $800 to do it. I am just worried that some sue happy person will take my property as well. You can never be to careful with the people that are out there today.
     
  5. strickdad

    strickdad LawnSite Senior Member
    Posts: 544

    i agree with john to a great degree, there are alot of downsides to being inc. this day and time. (alot of extra paper work) very hard to get any type of credit in a s corps name. as far as being sued, its like john said, were are all of your assets? at home or in the biz? your best defense here is alot of insurance. in my oppinon you need no less than 1 millon. we have more plus a "umbrella" 20 years ago we incorperated and there was a "distinct" advantage then as far as taxes, that advantage is not as distinct now. like john said talk to an accountant..
     
  6. KirbyKLC

    KirbyKLC LawnSite Member
    Posts: 31

    That is a TON of money to form LLC.


    Go to www.bizfilings.com I did my LLC thru them, was done in less than 2 weeks and cost only $260.00. Keep in mind that you will probably have to change your business licenses, bank accounts, etc., which may have some minimal costs.

    I just checked the cost for your state of TEXAS, (home of our Prez), and you can get it done for $355 basic or $535 for the "deluxe" package. Mine was the basic.


    Hope this helps!!!

    P.S. there are others out there besides this company. Just do a search.
     
  7. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    Every state varies with the cost though...the $800 covered attorneys fee and everthing
     
  8. bob

    bob LawnSite Platinum Member
    from DE
    Posts: 4,254

    My accountant advised me against getting incorporated. He said that he charges a lot more for doing taxes and it really wouldn't help me to be incorporated.
     
  9. jay warner

    jay warner LawnSite Member
    from sc
    Posts: 33

    It has it's benefits. If you make good money, have several employees, and all that other jazz, then I'd say do it. Solo's nah, give it a while.
     
  10. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    I feel pretty good about the cost in Wisconsin to become an LLC. I did it last week online. The state has a website for this. Enter the necessary credentials, they do a search and advise you in a couple days. Turned out my company name was available to me, figured it was, and $130 later we are now LLC. That simple. No need for an overpriced attorney. I would imagine the process will vary state to state, like everything else.
     

Share This Page