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LLC or Incorporated?

Discussion in 'Business Operations' started by BestCutInTown, Nov 26, 2004.

  1. BestCutInTown

    BestCutInTown LawnSite Member
    Posts: 5

    I am going legit in 05' and was wondering what most lawn care companies are. I know there are some differences between the 2, and am not sure which one to go with.. any input will be helpful..
  2. CrewCutEnterprises

    CrewCutEnterprises LawnSite Senior Member
    Posts: 893

    Been "legal for 4 years" was sole proprietor for 4 years.. U use for soc # for taxes.

    With LLC . No stock to issue and you dont have to do quartarly reports. I just went to llc this year.

    Incorporated has alot of pros.. but not enough more than the LLC. unless you want privately traded stock and have enough people to fill for "chairs" president ceo etc.
  3. CrewCutEnterprises

    CrewCutEnterprises LawnSite Senior Member
    Posts: 893


    havent decieded of LLC or Inc. loooks better

  4. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    The ONLY way to really know how to set up your business is to sit down for an hour and talk with an attorney. You may even want to get a second opinion from a CPA. A couple of years ago I was under the assumption that INC. was the way to go, when in fact for me, it was LLC.

    And you do have quarterlie estimated tax payments to be made both State and Federal (in NJ at least).
  5. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    We are an LLC also and this really is the best of both worlds for a service type business. The Quarterly payments are still the same as a Sole Prop and are only Estimated Taxes on your personal income (and of course the employees/employer taxes Federal Form 941 & 940 and your State Employee Taxes on any employee(s) but you have to do that on employees no matter what type of business you are from a Sole Prop to any Corp. If you are a Solo, then that will not be an issue) and you do not have to file the detailed monthly reports to the IRS and State as you do with an INC. The sweetest thing about an LLC is that you have liability protection on your personal assets but do not get doubled taxed on your earnings as a Corp or INC does and actually file your Income Taxes the same as you would as a Sole Prop.
  6. BestCutInTown

    BestCutInTown LawnSite Member
    Posts: 5

    All your information was very helpful and much appreciated. I have decided to sit with an attorney and decide what is really best for me. Thanks Again
  7. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913


    An S corp has the same tax advantages of an LLC, C corp has "double tax'

    The main advantage of an S corp is if one ever wishes to retire n sell the ownership can be passed on thru stock sale ....when I bought out my business partner it was very easy .... with an LLC it can not .... gotta start a new one

    When I started years ago the LLC thing was very new so I went S corp .... I have no regrets but if today I would look at either form of business structure
  8. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    just switched to an LLC this January. I can sleep better at night knowing that my bed and personal belongings will always be there when I wake up the next day
  9. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    the entity is Tiedeman, LLC, and my trade name is Tiedeman Lawn & Landscaping.
  10. CrewCutEnterprises

    CrewCutEnterprises LawnSite Senior Member
    Posts: 893

    thanks tiedman

    but no one has the Inc. or incorporated in there trade name? just to look more professional. i mean everyone has a name on a magnet on a pickup truck right

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