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Does a LLC offer any real world advantage over other business models?

Discussion in 'Starting a Lawn Care Business' started by Exact Rototilling, Jul 3, 2007.

  1. Exact Rototilling

    Exact Rototilling LawnSite Fanatic
    Messages: 5,378

    I have a non Lawn Care home based business I've had since 1998. Just started Exact Rototilling this spring but I wondering what real world benefit LLC has over other business types or models? I would also like to combine multiple catchy Slogan Company names under one banner if possible for the following:

    Pressure Washing
    Snow plowing and removal

    Thanks for the input
  2. john_incircuit

    john_incircuit LawnSite Senior Member
    from NC
    Messages: 310

    When I started the business, I used to think that doing a variety of jobs will increase the chance that I get plenty of work. Actually, the opposite is true. Specialize and be the best at it.

    About LLC, I'm not a lawyer or accountant, but from what I understand, it for sure has tax advantages, but I’m not so sure on how well in court the separation between your private money and the business money really holds up.
  3. txgrassguy

    txgrassguy LawnSite Gold Member
    Messages: 3,083

    The primary differences between LLC's and different types of Incorporation's has to do with separate read personal property protection versus that of the business.
    However, a Sole Proprietorship has many more tax advantages over that of these LLc's and Incorporations as the IRS reg's allow for more deductions and the returns are scrutinized much less closely than others - up to a certain amount.
    One additional difference between Sole Props and other forms is as a Sole Prop you become the personal guarantor for business related debt whereas the Articles of Incorporation and assets contained therein become the guarantor.
    Depending upon size (gross revenue) there are many benefits to structuring a business through Articles of Incorporation.
    Currently my business is still a Sole Prop yet with gross revenue approaching $1M/annum I have been advised to incorporate - as to what structure I haven't decided upon yet.
  4. TSG

    TSG LawnSite Senior Member
    Messages: 444

    If you get an Acct and attorney in the same room, you will come out
    an S corp. LLC and S corp have similar protection, S corp has better tax options.
    LLC'c are best for real estate, Dr's and Attorneys
    Just .02
  5. J&T Kiev

    J&T Kiev LawnSite Senior Member
    from N.W In.
    Messages: 416

    I went S-Corp for distribution and exit strategy options. I would talk it over with your accountant and attorney. Explain your situation, what you plan to do, they will be able to guide you and set you up for maximum legal protection in your state, everybody is different and what would work for me, might not work for you. In this day and age of lawyers and the sue happy you need to have a legal barrier between yourself and the business.The main reason for LLC or S corp. is personal asset protection and then which type of structure offers the best tax benefits for your company. S Corp offers protection and taxes your distributions or dividends different from your paycheck. LLC gives you the protection of an S-Corp, but taxes you as a Sole proprietor.
  6. lifetree

    lifetree LawnSite Fanatic
    Messages: 5,369

    What is your net per year ?? How many employees do you have ??
  7. txgrassguy

    txgrassguy LawnSite Gold Member
    Messages: 3,083

    My net has stabilized at about $122K/year with nine full time and three part time employees.
    I average, per year, about 53 hrs per week yet vacations have proved to be impossible to enjoy beyond ten days or so. Just too much going on for me to be out of the loop for anything over ten days.

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