Llc

Discussion in 'Business Operations' started by The landscaper, Jan 31, 2005.

  1. The landscaper

    The landscaper LawnSite Senior Member
    Posts: 845

    Are there downfalls of setting up my business as a LLC? Do any of you have your businesses set up like this and is it working out?
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Been LLC for a number of years now...I suggest you speak with an attorney to see if it's right for you, good luck.
     
  3. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    Speak with your accountant. I am lucky to have a good friend who's an accountant. He set me up as an S Corporation. He explained why but I couldn't (or didn't really want to) follow along with what he was saying. I believe what he told me was.. there were better tax advantages (for me) going this route. So do yourself a favor and find a good accountant and discuss it.
     
  4. The landscaper

    The landscaper LawnSite Senior Member
    Posts: 845

    Im trying to read up on each of them a little bit, but thats alittle confusing in itself
     
  5. captaingreen

    captaingreen LawnSite Senior Member
    Posts: 471

    My accountant gets frustrated when guys come in to do their taxes and she asks how they are taxed, they say 'I'm an LLC', then she says 'yes, but how are you taxed?' I am an LLC, but for tax purposes I'm a subchapter S-corp. Definitely talk to an accountant before you decide. It's also important to mention that laws vary from state to state, so despite what someone may say on this site, it can vary in your area. Good luck :waving:
     
  6. The landscaper

    The landscaper LawnSite Senior Member
    Posts: 845

    Does anyone know what the differences are in the LLC and the S-corp. I just read about how the LLC is still taxed like sole, partner, or corp. Thanks
     
  7. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    My company personally is an LLC and I wouldn't have it any other way. BUT what you really need to do is a SEARCH on here as there are hundreds of threads on this very topic (normally weekly even) that have tons of info.

    As to how a LLC is taxed is up to how you set it up with the IRS. It can be taxed as a sole prop or as an S-Corp (which I personally would not do because you lose the advantages of a true LLC so you just as well should go INC, but others as a LLC do file that way and swear by it). Also since you are only 19 the bigger question is do you even really NEED to Incorporate yet at this point? ARe you Full Time? Do you make "real" money at this? Do you have more than 2 employees (other than yourself) and do you have more than say $75K of personal unincumbered assets you need to protect? Do you have General Liablity Insurance? If these answers are yes to all of these then you probably do want to but if they are no you are probably better off remaining as a Sole Prop. Just Incorporating to say that you are an INC or a LLC and no other reason would be stupid at best.
     
  8. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Good advice Mike...you're a smart cookie :)
     
  9. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    Mike,

    What are the true advantages of an llc (that you would loose as an inc) you speak of?
     
  10. The landscaper

    The landscaper LawnSite Senior Member
    Posts: 845

    Thats what I was asking, I am not sure what the advantages and disadvantages are between LLC and S-corp.

    My reason for doing so is. I am getting into a partnership and want the personal protection. So instead of getting the partnership, I wanted to get into a s corp or LLC

    Thanks for you help.
     

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