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Business Liscense

Discussion in 'Starting a Lawn Care Business' started by white1, Jul 1, 2008.

  1. white1

    white1 LawnSite Member
    Messages: 108

    I know Im going to get flamed, but need some help.

    I bought my equipment with the plans of breaking into this business as a side job. I AM going to get my business liscense, plan to become LLC. and becoming insured. Problem was I was working 5 days a week 10 hrs a day, and to be honest, didnt have time to research everything I need, and or how to go abou getting it.

    I got laid off last Thursday, and am going to attempt to do this full time. Right now all Im wanting to do is lawn maitenance. Not ready for landscaping etc. Basically I just want to cut grass for now.

    I know I need a business liscense, but what type? Where do I need to get it? After I get my liscense, whats the best way to become LLC?

    I live in south Louisiana if that matters.

    For the help, thanks. For the flaming, I may deserve it.

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    A business license generally is cheap stuff, just call your county gov't or city/town if you live in one. Or...I guess you call 'em parishes down there. In any case they'll tell you what you need for your area.
  3. Liendeni

    Liendeni LawnSite Member
    Messages: 218

    You can file for a LLC online...do a search. You can also file for a business license online but they charge you a fee that is usually about $100 bucks, which is pretty high considering all you have to do is go down to your county office and get the paperwork. Insurance....I would try an insurance broker (one that deals with multiple insurance companies....and can research the best quote for you). The insurance will go off your yearly income. The lower it is...the lower your insurance.

    Might want to check your area though. In my area....they do not hand out business licenses for lawn care. You just get insurance and mow. Setting your business up as a LLC is a matter of choice. If you don't file a LLC you will be automatically taxed as a SP.

    Hope that helps a bit. Good luck!
  4. EagleLandscape

    EagleLandscape LawnSite Platinum Member
    Male, from Garland, Texas
    Messages: 4,350

    First learn how to spell license.

    Secondly check with your city/state to see if you even need in a license. We don't need a license in Texas to mow grass.

    Third, google TheCompanyCorporation and u can get an LLC there for like 400 bucks ttl. Why are you going LLC, why not sole prop? s corp, c corp? Do you know if an LLC is right for you?
  5. white1

    white1 LawnSite Member
    Messages: 108

    Im a coonass, thats how we spell liscense :jester: I havent researched llc vs. s corp etc. Ive just heard of llc from a lot of people. Really dont know the difference. Ill defiantly check in to it, thanks
  6. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Messages: 9,280

    white - would greatly bet you do not need biz lic to cut grass where you are at. Just check briefly with your city/county to make sure.

    Also, why the rush to get into an LLC? There are obvious advantages, but if you are a solo op, you can do biz just as easily as a sole prop. Just make sure your Business Insurance is at adequate liab. levels.
  7. Green' Go

    Green' Go LawnSite Member
    Messages: 50

    Not dumb questions at all. It is helpful for others also. I appreciate you asking them.
  8. white1

    white1 LawnSite Member
    Messages: 108

    Thanks for the help.

    Anyone care to try and learn me the differences between the sole prop, llc, kinda stuff?
    To be honest, right now, I need to set up a business account at the bank, and want to protect myself from liability.
  9. Liendeni

    Liendeni LawnSite Member
    Messages: 218

    White....we could give you the run down right here but you can do a basic google search and get more information than any one person could ever use. This site is great for asking questions that you can't find others places or just getting good advice from people who have been there before you...but asking people to explain things to you...when probably nobody explained it to them...and it really only takes a little effort to do a search....well...like I said...just do a search.

    Not trying to ride your butt but do you know how many "Hi, I am just starting out...what should I do" questions are on here?

    Good luck!
  10. Hortus

    Hortus LawnSite Member
    Messages: 72

    That's some good advice Liendeni.

    Whether with your insurance, license or forming a LLC / other type business model, you need to stay focused on how it's done in your own state. My advice for a first step would be to get a name of a reputable accountant from your friends and family and invest in a hour of his time for advice and further assistance down the line as you move along.

    Some cut/paste from research and how it was laid out to me before making the decision -

    A LLC lets you form a legal entity that insulates you from liability for claims against your business and at the same time, it keeps your current tax status. So if you’re a sole proprietor and you form a one-person LLC, you’ll continue to be taxed as a sole proprietor. If you’re a partnership and you convert to an LLC, you’ll continue to have your business taxed as a partnership, so you don’t change your tax status.

    With a sole proprietor, the major disadvantage is that since the business and the owner are one and the same, a lawsuit against the business imposes total liability on the owner. Also, a sole proprietor is personally liable for the acts of their employees. A large lawsuit would probably cause the owner to lose not only their business, but likely all of their personal assets as well, including their home, personal vehicles, and all other belongings. And a sole-proprietor usually pays more in taxes, since they have none of the tax saving advantages that could be available to them if they were to use another type of business entity.

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