sole p vs LLC

Discussion in 'Business Operations' started by Lawn RX 10, Nov 11, 2010.

  1. Lawn RX 10

    Lawn RX 10 LawnSite Member
    Posts: 69

    Hey guys quick question!

    I was a sole prop this year and did the whole 800 bucks a year thing for the liability insurance covered me up to 2 mil.....if i go llc would i even still need this since llc covers? Or would that only be for some crazy amount like if i put someone in a wheel chair? Any help would be awesome!
  2. RodneyK

    RodneyK LawnSite Senior Member
    Posts: 754

    You still need insurance it just changes from your name to the business name. An LLC is just another layer of protection. They are not magic bullets and the rules of road may make you personally responsible for an auto accident anyway.

    Depending on your net worth a personal liability umbrella may be in order.
  3. rreyn1812

    rreyn1812 LawnSite Senior Member
    Posts: 444

    Forming a LLC does not necessarily mean that you are not personally liable for something. For specifics in your state, you should consult a lawyer to find out what applies in your particular case.
  4. 93Chevy

    93Chevy LawnSite Fanatic
    Posts: 37,805

    LLC does not take the place of insurance.

    It merely protects your personal assets if your business gets sued, provided you keep your business and personal assets separate.
  5. Lawn RX 10

    Lawn RX 10 LawnSite Member
    Posts: 69

    Would you guy start out llc or sole? I wont be bringing in a ton of loot...
  6. 93Chevy

    93Chevy LawnSite Fanatic
    Posts: 37,805

    There's no disadvantages of LLC over Sole Prop. except maybe slightly higher startup costs...depending on your state and with whom you file through. LLC is the way to go for small businesses.
  7. yardguy28

    yardguy28 LawnSite Platinum Member
    Posts: 4,464

    from reading and posting on the various threads on this subject it seems to be personal preference.

    i've been in this business for 4 year now and been a sole the entire time. i also plan on remaining a sole for as long as i'm in business.

    others prefer to go the route of LLC. and like has already been said. it's another a layer of protection. not a majic bullet.

    in my opinion if you don't feel you need that layer of protection i would remain a sole. but thats just my opinion. you have to do whats right for you.

    if you seperate your business and personal assets and are concerned about those personal assets, from what i've read you might be wise to become an LLC.
  8. Grass Shark

    Grass Shark LawnSite Senior Member
    from Zone 7
    Posts: 661

    LLC for you lawnrx
  9. STL Cuts

    STL Cuts LawnSite Senior Member
    Posts: 493

    Idk about you, but for the minimal costs it takes to become an LLC, it is well worth it. Do you really want to have that liability by being a sole?
  10. delphied

    delphied LawnSite Silver Member
    Posts: 2,067

    An LLC protects ones personal assets better if you get sued. If you think that can never happen to you or you will not have anything worth suing for, maybe sole prop is the way to go.

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