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Sole proprietor or LLC

Discussion in 'Starting a Lawn Care Business' started by albhb3, Apr 24, 2008.

  1. albhb3

    albhb3 LawnSite Senior Member
    Posts: 502

    Hi i want to start my own biz. sometime within the next year or two. I need to know if i should go with either a LLC, LCO or sole proprietor. It will be just me starting out. What does LCO mean anyway??? Thanks for the help
  2. Paulup

    Paulup LawnSite Senior Member
    Posts: 270

    Lawn Care Owner or Lawn Care Operator, some people say it means either of those. I think the consensus is Lawn Care Owner.

    I would go with LLC, protect your personal assets. Thats what I did, working out good so far, and it costs little to form.
  3. deere615

    deere615 LawnSite Fanatic
    Posts: 5,676

    Not to jack the thread or anything, but does an LLC require 2 members? almost like a partnership
  4. Enzo

    Enzo LawnSite Member
    Posts: 86

    I go with an LLC and no you can do an LLC on your own. That is what I did
  5. IMAGE

    IMAGE LawnSite Bronze Member
    from midwest
    Posts: 1,134

    You can be a Sole Proprietorship(sp?) LLC. In that case you have the choice of filing for a seperate tax id number for the business, or you can use you SS #. Usually a SP LLC will just use the owners SS #, and the earnings are reported on a Schedule C.
  6. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,895

    alb - check out the tax advantages/disadvantages to each form of ownership. It would be worth your time.
  7. ztr24

    ztr24 LawnSite Member
    from Indiana
    Posts: 14

    no question about it, LLC. You don't want to be "that guy" that lost his house and assets over an accident. It will make your company liable, not you and your family. Good luck with the new biz.
  8. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,870

    There is a common misconception that a business owner cannot be sued if he is incorporated. This is false, the company and the at fault individual can both be sued in a civil trial. The victims lawyer usually goes after the deepest pockets, usually the company. If you are the person riding the ZTR when it plows over a kid, you are liable regardless of your corporation status. Your corporation status is more for tax and business credit purposes than anything else. I have preached for many years to new guys that the most important thing you need when you start up is business liability insurance. You should have this before you turn a blade on your first customers lawn. I just increased mine to 10 million and even that is nothing with the awards jury's have been giving victims of negligence lately.:usflag::usflag::usflag:
    ericg likes this.
  9. deere615

    deere615 LawnSite Fanatic
    Posts: 5,676

  10. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Posts: 8,895

    Remember, as far as the legal implications and potential to 'get sued' - practice safety at all times in your operation. If you are mowing mostly residential, there is no reason to be doing work when anyone is anywhere near your equipment (but you). This can even apply to commercial, try to do the work after/before closing hours. Make it a term of your agreement that absolutely no pets/kids should be on the premises when you are doing work. That way, you limit as much as possible your liability to potential property damage, which will not cost you near as much in a suit as would bodily injury to others.

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