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Sole proprietor or Corp??

Discussion in 'Starting a Lawn Care Business' started by CleanCuts101, Mar 15, 2013.

  1. CleanCuts101

    CleanCuts101 LawnSite Member
    from il
    Posts: 16

    So im deciding on which would be better for me my company is usually just me only once in a while will I definetely need help for clean ups and bigger jobs I am getting general liability insurance but im not quite sure what would be the best route because I don't have employees majority of the time I know the topic has probably been beat but any help is appreciated!
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  2. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 17,000

    Sole propreitor.
  3. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    C corp. pay yourself instead of owners draw so you can have taxes come out when you pay yourself. Also, anything other than sole prop makes you and the business nearly two different entities protecting you and your assets( not company's) if someone were to sue for damages greater than your ins.
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  4. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,920

    It depends.
    What you have.
    What you make.
    What you need to do.
    A CPA can explain the benefits of each best, based on your answers to each of the above.
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  5. kawakx125

    kawakx125 LawnSite Bronze Member
    Posts: 1,128

    I went LLC, cost me 50 bucks to file articles online through my state and now my personal assets are covered
  6. CleanCuts101

    CleanCuts101 LawnSite Member
    from il
    Posts: 16

    Thats the reason I haven't done a llc..in illinois the total for a llc is like 800 bucks
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  7. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,351

    This works just fine with an S corp the C corps have way to much regulations including double taxation.
  8. Depends on what personal assets you have to lose.
  9. sildoc

    sildoc LawnSite Silver Member
    Posts: 2,925

    Have been a Sole Prop for 12 years and my accountant this year said I needed to do a S corp. We are sitting down after tax time and looking at the pros and cons of this other than having to pay myself a wage as oppose to taking draws. Was looking at LLC a while back but didn't give me the tax breaks needed.
  10. herler

    herler LawnSite Fanatic
    Posts: 5,144

    Cheap it isn't but I hear it's more like $500 diy

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