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sole proprietorship vs LLC?

Discussion in 'Starting a Lawn Care Business' started by mike lane lawn care, Feb 3, 2010.

  1. mike lane lawn care

    mike lane lawn care LawnSite Bronze Member
    Posts: 1,707

    any thoughts on which one is better for a solo person? I like the simplicity of the sole proprietorship, but LLC is supposed to be better come tax season.
  2. silverado212

    silverado212 LawnSite Senior Member
    Posts: 373

    I will find out soon. We are an LLC Sole Proprietor setup, because my wife is the owner.
  3. ProcsLC

    ProcsLC LawnSite Member
    Posts: 132

    I think you might want to go to the library and read up on legal business forming... LLC's are great if you have assests to protect, but cost more to start up. A SP is the cheapest way to get into business and is great if you don't own anything...

    Check out your current situation, educate yourself on the different types of business structures and see which one is going to work out best for you and your situation.
  4. DA Quality Lawn & YS

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

    I too checked this out last season. For the solo guy, an LLC does not give you any better tax situation than sole prop. Its benefit lies in the pers. asset protection you get from it - separate your personal vs. business.
    If you carry good GL coverage, you will want to contemplate if you even need that.
  5. LawnmastersMikejr

    LawnmastersMikejr LawnSite Member
    Posts: 77

    X2. If you don't own a house or any large assets I wouldnt worry about going LLC.
  6. bryant lawn & landscape

    bryant lawn & landscape LawnSite Senior Member
    Posts: 316

    X3. I switched from S.P. last year to L.L.C. at my CPA's recommendation because I had acquired some personal assets (real estate) that I wanted to protect. It basically separates you legally from your business in terms of liability. There are no tax benefits that I know of going with the LLC. In fact, you have to pay yet another tax ($300 per year), and my CPA charged me a couple hundred more this year for filing extra forms. But I sleep well at night knowing I'm covering my ASSets.
  7. unkownfl

    unkownfl LawnSite Gold Member
    Posts: 3,838

    INC or LLC give you the liability protection. Also, makes it easier to barrow or sell share or ownership. Gives you the opportunity to lease your equipment to your LLC or INC. If you can't make your house payment any more or car payment they can't come after your business so gives you protection from both ways.
  8. rjh4758

    rjh4758 LawnSite Member
    Posts: 220

    I personally own several homes and have other large personal assets I want to protect. So I just did an LLC here in Oklahoma. Really simple, just filled out the form and mailed it with a $100 checks and received my Articles of Organization back in few days.

    Now an LLC will not protect you from liabilty if you are the person that caused an accident or damage. They can go after the business and the person that caused the accident or damage. Anyone can sue you for anything, weither they have a case or not.

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