Need help with LLC questions!

Discussion in 'Starting a Lawn Care Business' started by WillMowForBeer, Feb 17, 2006.

  1. WillMowForBeer

    WillMowForBeer LawnSite Member
    Posts: 22

    Whats the deal with LLC's and taxes? I hear that you dont get double taxed like a corporation but its still high. I am going to start mine as a LLC but I dont speak "governmentnese". I want to keep my family safe from law suits.

    Expensive :

    $125 filing fee
    $200 anual report fee (even though I will start in march I will still have to pay this on April 15th.......Aaaaarrggg!):cry:
    Plus $50 local business license
    $20 name registration (local)

    Hey at least the parking will be free.....I hope they validate.hammer

    Any thoughts? Info?
     
  2. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Posts: 946

    Hey WillMowForBeer,

    I am not an accountant, but to my understanding it is kind of like being a sole proprietor for tax purposes, with added liability protection.
     
  3. Green-Pro

    Green-Pro LawnSite Bronze Member
    Posts: 1,420


    Bingo!! Thats it in a nutshell
     
  4. sgallaher

    sgallaher LawnSite Senior Member
    Posts: 265

    You can register your LLC in the state of Delaware. It is one of the best states to incorporate in. You do not need to have your business or operate in Delaware to register their. Many of the corporations in the world are registered in Delaware. You will not have to pay any tax in DE either, unless you do work in the state. Go to http://www.bizfilings.com or http://www.delawareinc.com or there are several others. After you file and get you EIN you can file a Form 8832 to file as a corporation instead of on your personal income forms. You should really check out the IRS web site. All of this is available in numerous publications, just do a search. Check out http://www.irs.gov/pub/irs-pdf/p3402.pdf
    us flag
     
  5. sgallaher

    sgallaher LawnSite Senior Member
    Posts: 265

    Ofcourse the best thing to do is contact an accountant and lawyer.
    :usflag:
     
  6. dtelawncare

    dtelawncare LawnSite Member
    Posts: 227

    I got set up as a LLC right after I started up. My accountant suggested it as a good idea. As stated before, it covers your rear if something happened. The Business(LLC) is a seperate entity from your personal finances. Also, my wife is a listed member of the LLC. This means we can legitly go south to the coast to "pick up some plants and shrubs" and claim room and food.
     
  7. WillMowForBeer

    WillMowForBeer LawnSite Member
    Posts: 22

    When you added your wife, do you have to pay her? My wife will pretty much be doing the taxes and books so I would like to list her but not sure how that works
     
  8. dtelawncare

    dtelawncare LawnSite Member
    Posts: 227

    I set my LLC up on line. When filling out the form, I had to list at least two members. This is where her name came in. I don't have the info in front of me, but I can look tomorrow and post the site name. I found it searching the web. I don't know how different it is by state. I think I paid about $315 to set it up.
     
  9. dtelawncare

    dtelawncare LawnSite Member
    Posts: 227

    Sorry I didn't answer your question. NO I do not pay her.
     
  10. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Posts: 946

    I would be careful with not paying a member of an llc. I am sure dtelawncare has this taken care of, but if someone is a member of an llc strictly for tax purposes then it could possibly be looked at as tax evasion. You may want to talk to an accountant about it. I am currently adding my wife to the llc. She is going to be handling the office administrative end of things, as well as assist me with customer relations. We will together take a members draw. With an llc you do not have to take a paycheck as you would with other types of entities. However, each member has to be compensated in some fashion based on ownership. You can not have an entity and operating agreement without for all intents and purposes operating as such. I say all that just to say be careful. That is exactly why my advice to people is to get the advice of an attorney and or accountant. At least that way you will know the rules to the game. You can always form an entity on your own, but if you do not know how to play by the rules it can be your butt.
     

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