Going LLC Part Time?

Discussion in 'Starting a Lawn Care Business' started by MattNj, Nov 4, 2018.

  1. MattNj

    MattNj LawnSite Member
    Messages: 5

    I currently work a full time job an mow about 11 yards after work. Is it worth goin the legitimate route. I would like to start getting more clients an bid small commercial accounts. Or should I keep things the way They are. Any info is appreciated
     
  2. Grim_Archer

    Grim_Archer LawnSite Member
    Messages: 16

    The main benefit of an LLC is a reduction in liability against your personal assets and credit. In the end, a one man operation has has less exposer. Your biggest risks are employee related.
     
    Last edited: Nov 7, 2018
  3. Rockbridge Lawn Care LLC

    Rockbridge Lawn Care LLC LawnSite Senior Member
    Messages: 902

    When you ask yourself this question you are asking us if its a legitimate reason that you don't take your business seriously, even if a side or part-time endeavor.

    LLC is the only way to go to safe guard you the business owner against the liability damages you or your employee(s) or company may cause to the public. Sole owner or partnerships there is no limit for the court to seize your personal assets.

    legitimate infers you have general liability insurance...like a $5M coverage for commercial bids in most cases....you got that yet?

    legitimate infers you have accounting and tax (EIN) records to prove profit and credit worthiness if/when you decide to sell the business... got that yet? .....or know if your making money on the 11 clients thus far? It's really helpful to know your rates to bid commercial work and not be locked into a year contract at an under bid rate

    legitimate infers a revolving payroll to qualify for worker's Comp insurance coverage even for a sole owner as 'owner salary' if that owner wants this type of additional coverage for themselves in a medical emergency.

    legitimate infers constant improvement (however incidental that may be), but your already settling for "they way they are".

    so no you don't sound like you want to go the legitimate route...you want the short cut to magical commercial work that will solve all your problems in fantasy land.
     
  4. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 14,134

    Once again

    Why do you want to bid commercial accounts?
    You’ve got 11 lawns you mow after work and you already want to beat down the doors of commercial establishments?

    Settle down cowboy

    In most cases commercial locations have things like minimum insurance policies and other requirements that just make it more expensive to do business with them unless you’re already using/needing those things.
    They put them in place to mostly to thin the beard and assure they’re dealing with established companies in the first place.

    Yes you should have a license
    But you don’t necessarily need to be an LLC.

    Llc is a formality and is more useful for hiding assets from your ex wife than it is protecting your home or personal assets from suing the business.

    You can have a DBA business and do just fine
    In the beginning your business entity isn’t going to have any credit and it will be your SSN that’s needed anyway.

    Just too many ways to pierce the veil in the beginning, you can thank the patriot act for that.

    When you’re more established get articles of organization and become a real corporation (c or s) skip over the LLC
     
    hort101 likes this.
  5. grassmonkey0311

    grassmonkey0311 LawnSite Gold Member
    Messages: 3,363

    Not correct.

    A single member LLC is the same as a sole prop.

    If your looking at protecting personal assets, you'll need a multi member LLC.
     
  6. Grim_Archer

    Grim_Archer LawnSite Member
    Messages: 16

    Read my post again, I never mentioned anything about a single member LLC. I never specified a category of LLC. Do you know what the LL stand for in LLC?
     
  7. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 14,134

    Doesn’t matter what it stands for
    What matters how the law works
    The patriot act eviscerated the LLC
    Many many people learned how transparent the llc was when the shtf in 2008 and the lost their houses their cars and their kids college tuition.

    The llc doesn’t limit anything
    Not anymore
     
  8. BigJlittleC

    BigJlittleC LawnSite Gold Member
    from Chicago
    Messages: 3,563

    As a solo operation if your negligence results in you being sued. You can bet money on the plantiffs lawyer going after you personally if your biz doesn't have enough money. Won't matter what kind of business you have.

    This also applies to employees too. As they can be sued personally by an injured party.
     
    Doc8406 and hort101 like this.
  9. grassmonkey0311

    grassmonkey0311 LawnSite Gold Member
    Messages: 3,363

    Sorry, just reading my response I sounded like a _ick.

    When you register your LLC, you have to specify who the owner(s) is/are. If you are the only owner, it's a single member. If there are multiple owners, you need to list them and it's then a multi member LLC.

    If you are the only owner (single member), it's treated as a sole prop because you have total control of the assets/liabilities. Where as a multi member LLC asset/liabilities are split amongst the other members.

    There is a big difference between the two. Under a single member, if you get sued and the business can't cover it, it falls on you. But under a multi member, personal assets are covered because it's hard to distinguish who owns what in the company and how much each member should personally pay if the business can't.

    Hopefully this makes sense, I didn't know any of this when registering my business, so I hired a lawyer and this is what he was telling me. But, if you prefer being a Google lawyer, searches will tell you the same.
     
    hort101 likes this.
  10. ThriftyGarage

    ThriftyGarage LawnSite Member
    Messages: 4

    I registered my new business as an LLC.
     

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