Llc Vs. Corporation??

Discussion in 'Business Operations' started by landara maintenance, Dec 11, 2007.

  1. landara maintenance

    landara maintenance LawnSite Member
    Posts: 1

    Hey everyone. My partner and I have been doing a lot of REO yard maintenance here in California lately but we've been subcontracted through another business. We're ready to do our own thing but don't know whether we should do an LLC or a Corporation. Does anyone have any input?
    Landara Maintenance
     
  2. lifetree

    lifetree LawnSite Fanatic
    Posts: 5,370

    I think an LLC allows you to include a pro rata portion of the profit from the business in your personal income at the end of the year for tax purposes, whereas, being incorporated doesn't allow that !!
     
  3. jimmyburg

    jimmyburg LawnSite Senior Member
    Posts: 701

    my company is a corp. the good thing about a corp. if you get sued the only thing they might get is the name of the company, the corp protects you from getting your house and cars. in my corp i rent everything to the company. the company owns no assets therfore i charge rent on all the equipement used even my trucks. the gov can not tell you how much to charge for rent. i do pay taxes on the income but everything is almost a write off. i have a cpa who dose my taxes.
     
  4. Armadillolawncare

    Armadillolawncare LawnSite Senior Member
    Posts: 570

    LLC also protects your personal assets same as a corp.
     
  5. jimmyburg

    jimmyburg LawnSite Senior Member
    Posts: 701

    can you start several companys under a LLC? you can with a corp. inder my corp i have two companys, one for backflow and one for irrigation and my wife has one under the corp as well. and we do everything on quickbooks update the flash drive and take it to the cpa and we are out the door in a hour. :cool2:
     
  6. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    You have many more tax options as a sole prop. The corporate protection that everyone goes on and on about does not apply to you as the owner. It is to protect you from their negligence of your employees. I just learned that last week.

    You can get adequate protection from a simple liability policy and if you are concerned beef it up a bit. Your tax's will cost less to do you have more deductions and you won't have the cost of the incorporating. When you get employees you may want to reconsider but as a owner operator the corporation is just an expense you don't need.

    As always check mine and any information you get with your lawyer and tax professional.
     

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