Is an LLC needed?

Discussion in 'Business Operations' started by Sonshines, Sep 16, 2013.

  1. Middle Tennessee Lawn

    Middle Tennessee Lawn LawnSite Member
    Posts: 220

    What about tax burden of corporation tax rate is much greater
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  2. 205mx

    205mx LawnSite Silver Member
    Posts: 2,346

    LLC is not recognized by the IRS. You will elect to be taxes as a Corp or a sole proprietor.
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  3. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984


    A LLC will not protect the business owner's personal assets that is working solo.

    If a LCO has an employee. An the employee is on the job site working alone. And the employee F'up's. The customer can sue the employee because he did the F'up. And the sue the LLC.

    Now if the LCO is working on the job and he does the F'up. The customer can sue the LLC as in the previous case and the owner the owner personally just as he sued the employee. So the owners personal assets will not be protected.

    Plus there are no tax advantages to being a LLC.

    You want and need full liability protection then you have to look into being a S or C corp.
     
  4. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984


    You will need a EIN whether LLC or DBA.
     
  5. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984


    We do not know how Bernie's business was set up.

    Though even if it was an S or C corp. You are not allowed to keep monies earned from illegal activities. His personal assets were never his in the eyes of the law because he bought everything with stolen money.
     
  6. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984


    It is not more legit then a DBA.

    It has nothing to do with having the proper insurance.

    It is not carried to far because people still claim that you can not get personally sued when you can.

    Going to bed one night. Then the next day lose it all to a law suit when you were allowed to falsely think you were protected from law suites is a big thing.

    The question of should I become an LLC is always asked by a guy starting out with no employees. He will be on the job site doing the work. There is no employee to pass the blame on. An LLC will not protect him from being sued and may lose in court.

    I would bet that when he gets a helper and his is working with the helper and the helper does the F'up the owner can still get sued because the employee was under his direct supervision.

    It still is a big issue because people that post here are still not aware that they can be held liable as an owner of a LLC.
     
    Last edited: Jan 9, 2014
  7. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,673

    I don't why people get into arguements over term definitions. The various categories of corporations were created by and defined by the IRS. They are the first, middle and last word in defintion. The IRS does not leave room for personal interpretation. IRS.GOV will answer all your questions.
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