Another LLC vs SoleProp....Regarding buy out

Discussion in 'Business Operations' started by mkarps, Mar 5, 2012.

  1. mkarps

    mkarps LawnSite Member
    Messages: 57

    I have searched many many hours but would like to bring this to the top. I am hiring an accountant this year to do my taxes and will probably have her set me up as a LLC. I am buying out accounts, truck, trailer and equipment from my previous employer. I am still a little lost on what is best to do or how to keep track of this on the accounting side. I plan on talking more with my accountant but everyone here is always so helpful also.

    I will be making payments through the year every month for the accounts and equipment. Currently I am a sole prop but am thinking of changing to a LLC in the next week or two. Will this affect at all the buying out? From what I've come up with seems that tax treatment will be the same either way as LLC or soleprop. I would depreciate the value of equipment....and list payments for accounts as equity?

    My previous employer said he could structure it so the accounts are given to me but I am paying for all the equipment to make better deductions? Says he is free to do with the accounts as he wants but that I am purchasing all the equipment and just taking over the accounts. Is this allowed?

    I guess just looking for a little more advice on if changing to an LLC would affect the buy out? Change how I need to handle anything? Would it be better to buy out as equity/accounts....or as the truck and equipment?

    Thanks in advance!
  2. Rich Graz

    Rich Graz LawnSite Member
    Messages: 3

    Going llc or a corp is the only way to really protect yourself. My company is in the middle of a buyout including equipment. Although it's not much equipment and only about 20 accounts so I haven't been able to look in to the whole depreciation value due to the fact we own literally a hundred times more equipment in value. Im going to look in to it but I'm sure we can depreciate just like everything else or since it's a buyout put it as a write off for the first year of the total including the purchase of the accounts.

    best of luck
  3. mkarps

    mkarps LawnSite Member
    Messages: 57

    Thanks. I'm just going to make google and accountants my best friend the next few weeks...and beyond.

    CLARK LAWN LawnSite Silver Member
    Messages: 2,526

    Do some research, if you are booing to be a solo op then there is no need for an LLC. As a solo op you are still going to be ultimately responsible.
    Posted via Mobile Device
  5. FlCutBuddy

    FlCutBuddy LawnSite Member
    Messages: 7

    i've been calling around asking businesses about requirements to do business with them.....along with license & being insured , i was told i needed to be bonded....."what is this term" ?
  6. wbw

    wbw LawnSite Fanatic
    Messages: 5,932


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