sole Proprietorship, LCC or S-Corp

Discussion in 'Starting a Lawn Care Business' started by jwc1031, Sep 27, 2003.

  1. jwc1031

    jwc1031 LawnSite Member
    from TX
    Posts: 3

    Does anyone have advise on what the best type of business to claim is??? I have heard alot of pros and cons on all three!!
     
  2. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Posts: 10,812

    LLC,but as a lawyer.
    John
     
  3. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Posts: 833

    I am sure Texas does not allow a single member LLC

    So IF you are the only owner, your options just dropped to two:
    S-corp or sole prop. With that, S-corp is the easy answer.

    IF you have other partners LLC may be attractive. But since partners is usually NOT attractive, I would lean to S-corp for a one person business in Texas.

    It is not a matter of type 'to claim' it is a matter what form to establish. This is something BEFORE the fact, before conducting business.

    If you still are questioning which one, offer more information for everyone to help...:)
     
  4. I am Me

    I am Me LawnSite Member
    from D/FW
    Posts: 72

    Tx does allow an LLC for a single person.

    However, my question is the protection factor of the LLC against such things as law suits. It seems that the LLC is easily penetrated to allow the person to go after or attach personal property or assets. Green is this true?
     
  5. bruces

    bruces LawnSite Senior Member
    Posts: 648

    Legal question - if you want legal advice, ask an attorney for reliable information.

    In my opinion, the LLC offers pretty good liability protection, but again, spend some money with a local attorney if you are concerned.
     
  6. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Posts: 833

    I stand corrected on the Texas single-member LLC. (A reference cited TX and 21 other states offer it). So now you are back to three.:dizzy:

    I ditto Bruces words.

    The actual answer is SO state specific that one has to consult with an attorney in the respective state. AND one familiar with business law. Ask 3 different lawyers that question and you may get 3 different answers. That's why they have insurance.


    LLC are so new that many of these issues have not been 'tested' yet. While state law may intend for the 'protection' the law will always be tested and only until some case law documents the issue one way or another followed by more detailed legislative action will people know absolutely where they stand with LLCs. That is one reason why attorneys often advise going with an S-Corp. There is more S-corp case law and such questions are more easily answered.
     
  7. Jimbo

    Jimbo LawnSite Bronze Member
    Posts: 1,093

    The reason I formed an LLC corporation was to protect my personal assets, and the name implies the same thing- go figure.
     

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