LLC and you may still be liable?

Discussion in 'Business Operations' started by indy2tall, Dec 2, 2006.

  1. Tim Wright

    Tim Wright LawnSite Bronze Member
    Posts: 1,034

    Very sound advise.

    Tim
     
  2. mmacsek

    mmacsek LawnSite Senior Member
    Posts: 544

    I know this was stated on this thread and previous threads , Hire an attorney and follow his advice. Do a little research and don't just pick a name out of the phone book. The attorney I used was recommened by other attorneys as the best business lawyer. I thought an LLC was the way to go be he advised differently. He recommened Inc. subchapter S. The tax liability is no different than a LLC or sole prop. Everything passes through to me. This is not my knowledge but our CPA. As far as mixing personal with business our attorney advised on keeping personal assests in my wife and my name and business in my name only. My wife doesn't sign business checks because that could make her an officer and possibly open up our personal assests. The main reason to Inc. or LLC is to protect personal assests. Have a great day! Matt
     
  3. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563


    one word....INSURANCE......

    a good insurance policy will prevent this.
    they will cover legal fees, etc. all you pay is your deductable.
    any business should have at least a $1M. policy...
     
  4. VBsnow

    VBsnow LawnSite Member
    Posts: 241

    This is probably one of the most informative threads that Lawnsites users can read. With that out of the way, check this out:

    Here in VA you charge the officers of the LLC differently than other types of corporations. Since you have members and managers instead of officers the INS CO's charge differently. The members are charged a payroll basis of a sole prop @ $15,600 and the managers are charged like officers @ $26,000

    What does this mean? Work comp is based on a per 100 basis. So the figure for members would be 156 and 260 for managers. We then multiply by the rate of $3(made up for simplicity). The member would pay $468 to be included for coverage and the manager would pay $780. The member would save $312 for the same coverage.

    Use the info how you like. Just a little FYI on an oft overlooked fact.
     
  5. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Posts: 1,776

    This is a true statement. It very seldom comes up in court, but if a plaitiff can prove you co-mingle (embezzle) funds from your accounts, your LLC may not protect you. It is also imparative that you sign everything as a "manager" or "owner" etc. If you are using your signature alone, without identifying your actions as a company, you are personally liable. My buddy lost his garage door company for that reason.
     
  6. Josh.S

    Josh.S LawnSite Bronze Member
    Posts: 1,085

    So to sign a check you need to write,

    John Doe - Owner

    or

    John Doe - Doe's Lawn Service, Owner

    ?

    EDIT: Sorry for a stupid question.. haha...
     
  7. Team-Green L&L

    Team-Green L&L LawnSite Bronze Member
    Posts: 1,776

    No, when signing a contract or "legal" document, the other party MUST be aware that they are signed a binding agreement with an LLC. To do this, it is advisable to add "owner" etc. under your signature area. "Authorized representative" is appropriate also.
     
  8. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Posts: 2,412

    Great advice and good read! Thanks
     
  9. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Posts: 10,812



    I had a stamp made up. it was easier to do.
     
  10. VBsnow

    VBsnow LawnSite Member
    Posts: 241

    Yardpro,

    Where are you in coastal NC? I am on KI.

    Anyhow, I'm on the way to Snowshoe for the weekend. Think snow!
     

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