Making my business legal!

Discussion in 'Starting a Lawn Care Business' started by stevenf, Jan 15, 2008.

  1. stevenf

    stevenf LawnSite Bronze Member
    Posts: 1,612

    I just got finished with my apointement and it didnt go so well. I had a meeting with a non-profit organization called Score. Its a group of retired business owners that counsal you through different stages of business. Rather then actually helping, The turn out was a group of rich, old, arrogent men. One was in realestate and couldnt stop mentioning how he doesnt feed his lawn cutters during the winter.
    For some reason, they werent taking me serious and gave me the title of "grass cutter" rather than seeing my ideas for future expansion.
    Ok, Last summer I got the name registered in my fathers name. He was going to claim the business and use my payroll as a tax right off since I didnt own anything. I have sence learned there is SOOO much more to owning your own business. I got my dad to get the transfer sheet notarized so the name will soon be mine. I have decided that I will go with LLC rather then sole proprietor for basic legal, law suite protection.
    NOW, I have the papers for the name ready to go. After I get it registered in my name, Will they charge me to change it to LLC? After thats done, I will need a business license, fill out the form for tax I/D, Open a checking account in the business name, then add liability insurance.... Is that everything?
    Also, When you have an LLC, does this mean you dont need as much liability coverage?


    Sorry everything is so scrambled around, Answer the best you can.
     
  2. Big C

    Big C LawnSite Bronze Member
    Posts: 1,642

    yeah....i would still get 1 mil insurance
     
  3. LawnCare_EMT

    LawnCare_EMT LawnSite Member
    Posts: 30

    I have read about those SCORE groups and am sorry you had a bad experience, they just dont understand. There are a ton of senior members on this site that have way better information than those SCORE groups could ever offer. Do some shopping for the Business Banking watch out for all the "little" Hidden fees. I am with Big C on the insurance you need at least 1 mil and shouldnt start without it. One question though why LLC??
     
  4. mow2nd

    mow2nd LawnSite Senior Member
    Posts: 603

    I didn't know starting a business was so hard. Maybe it's different in other states. I just went down town, paid my $50 and got my license.
     
  5. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    It's as hard as a person wants to make it. Some people just have that type of personality that tend to make everything harder than it has to be. While others are the exact opposite. Neither is wrong, just 2 ways to the same end.
     
  6. stevenf

    stevenf LawnSite Bronze Member
    Posts: 1,612

    Im going by state requirements. I was choosing LLC because of the law suite issue. From what I understand, they can only take how much the business is worth and nothing falls back on you as an induvidual.
    If you guys think sole proprietor is the best route then all of my problems will be solved. Why did yall choose sole over LLC?
     
  7. jdmcat

    jdmcat LawnSite Senior Member
    from Idaho
    Posts: 439

    you should see if you can get a free consultation with a CPA. they will be happy to tell you what you need to do. then you can hire them to do it for you... at about $150/hour:dizzy:

    btw, you think you got it bad, I live right smack on the idaho/washington border. Not only do I have to register in both states, i have to get business licenses in three cities. Unless i want to give up a whole bunch of potential business on the other side of the river. It's not hard i guess, just a lot of paper work.:hammerhead:
     
  8. Big C

    Big C LawnSite Bronze Member
    Posts: 1,642

    Yes you do have to pay to make the change to an LLC (c'mon this is Louisiana)- $70 plus $30 same-day-filing fee if you want it done on the same day. I would do an LLC for the sheer fact that it protects your personal assets..good luck
     
  9. stevenf

    stevenf LawnSite Bronze Member
    Posts: 1,612

    Well, The only things I legally own that the state knows about is a 5x10 trailer, and a 1989 Bronco II. Not much to take from me.......
    I guess I will be ok with sole proprietor for the first year or two.
    For the guy who ask me "Why LLC?". Let me know why you didnt do an LLC.
     
  10. Whitey4

    Whitey4 LawnSite Silver Member
    Posts: 2,448

    LOL..... how difficult going legal isn't a choice, it's a function of state, county and town laws and regs. After getting insurance, I needed a cert of authority to collect sales tax, a worker's comp waiver affadivit, a federal IEN, a business name registration, town permits, and when I took my $450 to the consumer affairs office, was told I would be denied a license unless I provided 5 years of W-2 working for another LCO! Then off to my landscapers association, have then argue with the county CA office, etc, etc, etc.

    Then, let's not even get onto the DOT regs or what it takes to become certified for pesticide applications or trips to the DMV for trailer and commercial plates (Tags to most of you). Sure, going legal is a breeze.
     

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