1. Missed the live Ask the Expert event?
    Not to worry. Check out the archived thread of the Q&A with Ken Hutcheson, President of U.S. Lawns, and the LawnSite community in the Franchising forum .

    Dismiss Notice

Incorporating or not??

Discussion in 'Starting a Lawn Care Business' started by MJL1929, Jan 22, 2006.

  1. MJL1929

    MJL1929 LawnSite Member
    Posts: 14

    I plan to start my first year part-time, however I realize the benefits of becoming a corporation when I am full-time. I understand it can be a process, however does it make sense to incorporate at the time of start-up or wait until I am established?

  2. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    How big do you want to be in the future? Every situation is different so draw up a business plan and talk to an accountant and an attorney. (you can also talk to a score.org rep. as well to save cash) and they can advise you to what strategy to pursue.
  3. Dixie Rob

    Dixie Rob LawnSite Member
    Posts: 107

    I'm not getting into too much detail, but if you are an incorporation, it can have very nice capitol gains. As out4now said, you need to talk to a CPA, and then the lawers fees if you so choose to do it, will be a couple of grand.

    The best benfit we got out of becoming Inc, was that we put all the equipment/trucks in our names, and not the business, and "lease" everything to the business, and the business pays taxes/insurance on everything. Pretty nice gain on top of a paycheck, and then if the business ever gets sued, we really don't loose anything but the name of the company.

    If ya need more positives/negatives just ask.
  4. drsogr

    drsogr LawnSite Bronze Member
    Posts: 1,275

    THE SBA here in wichita is offering a class talking about different types of business structures. You might check with your local Small Business Association. I think it will help me choose which one I should be. As of right now I am a sole proprietorship....but I know I should change.
  5. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    Even part timers should insulate themselves ffrom the liabilities of their company. We chose subchapter S as it offers us a great deal of risk protection. Even a simmple LLC offers a good deal of protection.
  6. Hard Worker

    Hard Worker LawnSite Member
    Posts: 186

    At the present we are not corporated, but after talking with my CPA there are tremendous tax advantages to be had. This as well as the liability risk has swayed my decision to sometime in the near future to change over.
  7. leadarrows

    leadarrows LawnSite Senior Member
    from N/A
    Posts: 925

    I just incorporated my recycling company and my farm and here in Indiana anyway the filing fee is $90.00. Then you need an SS-4 which is the application for your Employer Identification number and a Bt-1 Business Tax Application. I filed the Articles of Incorporation myself with the form I got from my states web site. My accountant filed for the other stuff I needed. I didn't need a lawyer and I sure didn't spend anywhere near 2 thousand dollars. I spent less than 5 hundred on both companies.
  8. Evergreenpros

    Evergreenpros LawnSite Bronze Member
    Posts: 1,155

    If you wait and just operate as a sole prop it's much easier as far as paperwork and it's a ton easier to disolve the business if you decide to stop. It's also easier to operate as a sole prop when you're using your personal assets since you can just write off the depreciation and expenses and never have to move the assets into the corporation and back out again.

    As far as the liability issue, a good insurance policy is almost as good as the corp shield.
  9. SodKing

    SodKing LawnSite Bronze Member
    Posts: 1,648

    Not quite...when they agreived has reached the ends of your insurance company they can go after you personally as a sole proprietor. That means your house, car, land, assets etc...

    They can only go after the assets of teh corporation if you are incorpoorated. Proper set up of the corporate assets can further protect them from risk.

Share This Page