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Discussion in 'Starting a Lawn Care Business' started by wowmowwow, Feb 7, 2007.

  1. wowmowwow

    wowmowwow LawnSite Member
    Posts: 209

    Why should my small business incorporate?
    The primary reason that businesses form a corporation, or form an LLC is for the liability protection.

    Unlike partnerships and sole proprietorships, corporations and LLCs are legal business entities, separate from the individual owners and members, and offer personal protection from the debts and obligations of the business.
    i googled llc and read this...so tell me why i need this...thanks
  2. dekalb lawn man

    dekalb lawn man LawnSite Member
    Posts: 134

    Another reason is the tax break you get.
  3. txgrassguy

    txgrassguy LawnSite Gold Member
    Posts: 3,083

    Corporate shielding of LLC's and Corporations are no longer offer the degree of protection once available.
    In order for you to really protect personal assets you need to form a trust which places your personal assets in the last stable area which has proven to been the most secure.
    Once you have grown your business beyond a certain point, typically $750K and above, tax structures allow for certain write off's not normally granted to sole props.
    Most, if not all, of your asset protection comes from a commercial liabilty insurance program wherein the insurance company shields your assets from civil attachment - this is what insurance premiums are for.
    save your money, acquire the necessary insurances and licenses, then when your business matures, purchase the LLC or applicable Corporate structure.
  4. wowmowwow

    wowmowwow LawnSite Member
    Posts: 209

    so im ok with the half mill$ policy from liabilty insur?
  5. jinx 88

    jinx 88 LawnSite Member
    from ozarks
    Posts: 44

    Most of the commercial accounts I have require a $1 mill. general liability policy.
  6. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Most companies require a minimum 1 million 2 million aggregate. Many are starting to ask for more.

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