insurance questions

Discussion in 'Florida Lawn Care Forum' started by Grahamslawncare, Feb 17, 2014.

  1. Grahamslawncare

    Grahamslawncare LawnSite Member
    Posts: 143

    I was confused about the LLC thing. What exactly is that for?
    And when i talked to the city all they said i needed was my tax receipt from them and a Fictitous name registration from the state.
     
  2. unkownfl

    unkownfl LawnSite Gold Member
    Posts: 3,838

    Is your business an INC?
     
    Last edited: Feb 19, 2014
  3. Grahamslawncare

    Grahamslawncare LawnSite Member
    Posts: 143

    It's not an INC or an LLC. I didn't even know I had to have one of the other. :/ guess I'm not fully legal. How do I go about this?
    Because like is said, I have the EIN because i thought I needed one(after reading what everyone else said wasting the 20mins does about the same as just using my social since im employeeless, Tax Receipt from Daytona Beach(city), and a fictitious name.
     
  4. unkownfl

    unkownfl LawnSite Gold Member
    Posts: 3,838

    Did you register with SUNBIZ??? You don't need to be a LLC or INC. Just if you choose to be taxed as a S corp you are essentially an employee and employer. If you can be considered an employee and pay yourself payroll you will need to pay into unemployment with Florida. If you're a Sole Proprietorship you don't need to pay into the unemployment until you have an employee. If you need to collect sales tax you will need to register for that as well with the FL dept of revenue. There are federal tax benefits going with an INC structure or certain tax structures in a LLC whether or not they will benefit you is up to you and how much you earn a year. If you're netting a fair amount it may be to your advantage to avoid some self employment tax by going the S corp route.

    Basically going the route you're a sole proprietorship it seems. So minus your expenses at the end of the year you will pay the IRS income tax and the 15+% self employment tax on all your net earnings. With going to an S corp you will be able to avoid some self employment taxes. Keep in mind self employment taxes counts towards your SS/disability benefits so you don't want to cut yourself short if you're going to become disable or retire within a decade or so. If you ever look at your pay check stub the FICA is actually only what you pay your employer matched this for the total of 15+%.

    You don't have to be a LLC or INC but if you want to avoid some SE taxes you will need to elect as a S corp or C corp in either entity by march 15th.
     
    Last edited: Feb 19, 2014
  5. Landscape Poet

    Landscape Poet LawnSite Gold Member
    Posts: 3,637

    This is correct that you really did not need a EIN and are set up as sole prop...you are the business and the business is you...your social would of did. I know it gets confusing sometimes when you stay small as people just assume you should have this or that and it may not fit your model.

    I had one company insist that I give them a copy of workers comp when I was solo. I explained to them that at that time there were not any employees. They insisted that I needed a workers comp exempt form then. I called the state and the state informed me that I was not able to get a workers comp exempt form because I did not meet the terms of needing workers comp. Explained to the company - company insisted I still needed, finally got it resolved after many many calls and one final call with everyone conferenced in...I can still remember how frustrated I was that day.
     
  6. twomancrew

    twomancrew LawnSite Senior Member
    Posts: 945

    My second or third year I got into some jobs with vendor packets. I had to get commercial vehicle and worker comp policies for a couple and I didn't really want to start them. It was a lot of insurance to carry for only a few dollars here and there. My first couple years I didn't have a plow truck so when I got one I plowed snow for a year without proper insurance. The dingbat agent I got never tells me things for the future. Just because I don't have a plow today she could mention the policy needed. I guess I was trying to be too cheap as a beginner, and I didn't want to know.
     
  7. tomsyardcare

    tomsyardcare LawnSite Member
    Posts: 59

    You need an EIN # whether you have employees or go solo to open a business checking account. You get your EIN from calling the IRS and applying for one
     
  8. twomancrew

    twomancrew LawnSite Senior Member
    Posts: 945

    Try a different bank next time. You can search my posts, my wifey is a banker and all I needed for our's was our dba and my ss#. Not to argue, just letting people know there are options to some things.
     
  9. Grahamslawncare

    Grahamslawncare LawnSite Member
    Posts: 143

    So let me get this all right.

    I need to go to sunbiz.org Register my business, and either do it as a Sole employer/employee, LLC, or INC and i won't need any other paperwork? :) You guys are a lot more help then city hall. Those idiots barely told me anything. Had to keep bugging my girlfriend who works as an accountant for a construction company for help. She has to go there a lot for their licenses & permits and knows a little about the system.
     
  10. Grahamslawncare

    Grahamslawncare LawnSite Member
    Posts: 143

    So got off the phone with sunbiz. -.- They said i cannot even apply for an LLC OR INC since i don't have employees. Then i asked if i still need some sort of business license to prove im a licensed business, and I get,
    "do you sell products?"
    "No, im a service."
    "Oh well, yeah... um... i don't know...."
     

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