What to do? So confused.. LLC, INC, C-Corp?

Discussion in 'Business Operations' started by Josh.S, Oct 4, 2006.

  1. Josh.S

    Josh.S LawnSite Bronze Member
    Posts: 1,085

    I need some advice for how I need to setup my businesss for next year.. I know there is probably a thousand threads on here about LCC, INC and stuff like that but the more I read, the more confused I get.

    I am NOT interested in real estate, at least not at this time.

    I am a one man show, with a buddy of mine that helps aroud once per week.

    I do NOT want to pay workers comp. Supposably if you have less than 3 employees you are not legally required to do so in Ohio? Another confusing problem in itself.

    Next year I will gross well under $50k

    I basically don't want to flip a rock up and hit some kid in the face and lose everything over it if at all possible to avoid this risk.

    Also what is the deal about paying yourself?? How do you make a payroll that taxes come out of ?

    I'm sorry to repost a thread with such a broad area of questions, and they have all already been discussed, but the more I read the more you guys confuse me, I have no idea what to do.
     
  2. Josh.S

    Josh.S LawnSite Bronze Member
    Posts: 1,085

    If you guys have any questions about my business just ask me, I don't know how I should do it next year.

    Also, I may be interested in purchasing apartments or a triplex next year, is there a way if I set up a Corp to purchase these without paying taxes on the money I buy them with?
     
  3. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I was confused years ago as well. Spent an hour with my attorney and that was that...went the LLC route.
     
  4. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,850

    Ditto, sit down with a business attorney, explain your situation, what you plan to do, yada yada yada. He will be able to guide you and set you up for maximum legal protection in your state.

    Personally, I went LLC also, but there may be a better option in Ohio.
     
  5. rutwad

    rutwad LawnSite Member
    from Alabama
    Posts: 179

    For the simplicity of it, what's wrong with staying a sole proprietor and carrying liability insurance that covers the kid's face.
     
  6. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,850

    and when your insurance runs out on you they start with your truck, your trailer, your mower, your tools, your house, you're S-O-L.

    in this day and age of lawyers and moron's you need to have a legal firewall between yourself and the business.
     
  7. rutwad

    rutwad LawnSite Member
    from Alabama
    Posts: 179

    What if your wife runs a school bus full of kids off the road and kills them all. Then what happens when your insurance runs out? Is she INC. also?

    And for someone starting out with about $2000 worth of equipment, why not become a LLC and carry no insurance?


    I found out from a CPA that just went to a new class last week. Double check on a LLC, they are not as secure as everyone once thought.
     
  8. covalawn

    covalawn LawnSite Member
    Posts: 32

    My accountant said to go with an S-Corp. But I started searching and came up with this website

    http://www.residual-rewards.com/llcvsscorp.html

    Looks to me for a lawn service that LLC is the way to go!:confused:

    I'll figure it out next season.
     
  9. BSDeality

    BSDeality LawnSite Silver Member
    Posts: 2,850

    what the hell does your wife have to do with this equation?

    A LLC is a double wall protection. this way if you flatten a kid to a pancake with your wifes minivan they can only go after your "personal stuff" the business assets are safe on the other side of the LLC "firewall".
     
  10. rutwad

    rutwad LawnSite Member
    from Alabama
    Posts: 179

    you mentioned if your insurance runs out as a sole prop., then they start coming after your personal assets b/c there is no difference in bus. or personal assets. Maybe it's a bad comparison, but the family members of the school bus kids are likely to sue your automobile insurance company. Now what will hapen when the insurance runs out?
     

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