LLC or S-corp?

Discussion in 'Business Operations' started by EJD Lawnpride, Sep 23, 2007.

  1. EJD Lawnpride

    EJD Lawnpride LawnSite Senior Member
    Posts: 313

    I was wondering what would be better to protect my assets. Right now sole proprietor but everyone is telling me to become incorporated or LLC. What is the best for small lawncare biz? i'm looking to expand to 2 crews next year want to be protected.
     
  2. AAXteriors

    AAXteriors LawnSite Member
    Posts: 158

    Im an S-corp. Its alot of paperwork but its also the best at keeping your assets protected. Also my accountant says I can write off alot of my expenses as well. Im not sure if this is how it is with LLC. or others because I went straight to S-Corp when I started my business.
     
  3. bcg

    bcg LawnSite Bronze Member
    from Tx
    Posts: 1,835

    An LLC can elect to be taxed as an S-Corp. You really should talk to both a business attorney and an accountant to decide what's best for you.
     
  4. Lawnworks

    Lawnworks LawnSite Fanatic
    from usa
    Posts: 5,407

    S-corp for tax purposes.
     
  5. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    If I'm not mistaken once you go the S-corp route you can't go back, but you can go LLC then S-corp just never back to LLC.
    As was said thou, speak to an accountant or attorney, this is only a coin flip if you go LLC, otherwise you might be in for it.
     
  6. SwihartServices

    SwihartServices LawnSite Member
    Posts: 154

    Definitely the LLC, it has the same tax benefits as the s corp without the restrictions. You have total flexibility with the LLC.
     
  7. EJD Lawnpride

    EJD Lawnpride LawnSite Senior Member
    Posts: 313

    I was told the same thing about the LLC. How much does it usally cost?
     
  8. SwihartServices

    SwihartServices LawnSite Member
    Posts: 154

    Only about $130 one time on legal zoom for the basic package. I think if you do it with a lawyer it's around a thousand bucks.
     
  9. EJD Lawnpride

    EJD Lawnpride LawnSite Senior Member
    Posts: 313

    What is legal zone?
     
  10. NNL&LS

    NNL&LS Banned
    from zone 5
    Posts: 88

    Do it yourself. You can find all the documents you need online at the IRS website. I have owned an LLC and now own an S corp. S corp pays less taxes than an LLC. I'm not sure what the previous poster meant about any restrictions with an S corp.
     

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