How many are LLC's??? Help!

Discussion in 'Business Operations' started by Doogiegh, Nov 19, 2001.

  1. Doogiegh

    Doogiegh LawnSite Senior Member
    Messages: 871

    Ok, so I was going to start out as a scrub kind of guy and do some fall cleanups. Put out 100 flyers in my area for fall cleanup and didn't get a single call back. I have all homeowner equipment, JD 30" rider, Toro 21" mower, blower, edger and trimmer... all on a 4*8 trailer.. What a bummer... I kept reading Lawnsite everyday, learning more and more..

    I want to go totally legit the right way. I was gonna put ads out in the paper, but I don't have insurance or licensed..

    So, today I went to the State of NJ Office and got my training manual so I can study to be pesticide certified, I'll get to take the core test and Category 3A test over the winter. Certification is good for 5 years, so if I test in February, I'll be good for years... I'm also looking into getting liability insurance..

    Then I can advertise "Fully licensed, fully insured" and go 100% full-throttle ahead on getting some accounts come January/February....

    I also realized that starting out with this idea on about October... 15th.. is a bad time of year to start.

    Oh well, no money lost just yet, except for the $25 I spent making that striping kit.. (I posted "I made a striping kit tonight..") thread...

    SO - Big Question - I have to "Create" a small business over here in NJ..

    How many of you guys out there are small business, I'm a 1 person sole propietorship, ** OR ** are you guys in as LLC, Limited Liability Company??

    I heard that * IF * I have a $1 million liability insurance, and use my rider mower and take out 7 year old Johnny's eyeball, I'm in for alot more than a $1 Million lawsuit, but you can be much better protected if you are a LLC.

    How many of you guys have gone the LLC route? Do I need a lawyer or an accountant to set this all up? What kind of yearly/monthly fillings would I need to make to stay legit?

    Any help, the more detail the better, would be great. Thanks all you guys!
  2. yergus

    yergus LawnSite Member
    Messages: 146

    i went LLC the first part of this year. it cost me less than $100.00 for my accountant to do the paperwork for me. LLC acts like a half way point, half like sole proprieter, half like a corperation. your CPA can explain it better than i can, as well as tell you which would be best for your situation.
    mine happened to be LLC.
  3. Barkleymut

    Barkleymut LawnSite Bronze Member
    Messages: 1,117

    An LLC or Corp will only protect you if you have employees. Here is why. If you have Jo-Bob as an employee and he hits a rock with a mower and it kills Mrs. Pita then your company and Jo-Bob are each liable. Therefore you don't lose your house just your business assets. BUT if you are the one who kills Mrs. Pita then you and your business are each liable. Insurance is a must and caution as well. Good Luck.
  4. G.Williams

    G.Williams LawnSite Member
    Messages: 36

    We are a LLC company in NJ. Our corporate attorney, ( a Harvard grad) told us the llc is the way to go, but we are a partnership, at the time one owner companies could not be an LLc for some reason, I believe the law has changed, we did this back in 1997. Has a couple of different bells and whistles than a standard S-Corp. But it was recommended to us. End of year have to to a 1065 partnership return of income. Hope this helps, if not ask away, I'll try to answer.
  5. Matthew Morgan

    Matthew Morgan LawnSite Member
    Messages: 45

    Hello Gregg!!

    I am a sole prop., but I am going to incorp. this winter. I carry million dollar liability and I figure that if they don't settle out fo court for 1 million, "here's the keys, the list is in the glove box, you have a lot of work to do. Good Luck pal!"

    Just my 2 cents.

  6. G.Williams

    G.Williams LawnSite Member
    Messages: 36

    Good to see you matt! LLC/Corporation very similar creatures. I really honestly don't know the difference. Can't be too much difference.
  7. strickdad

    strickdad LawnSite Senior Member
    Messages: 544

    i dont know about llc but i have been inc. for 15 years and there is a great deal of paper work being inc. so be ready for this when you apply to be inc.
  8. G.Williams

    G.Williams LawnSite Member
    Messages: 36

    Yeah, lots of paper with LLC as well, miutes of meetings etc. Blah, Blah, Blah. One day it may be all worth it if something happens, let's hope nothing happens.
  9. Chuck Sinclair

    Chuck Sinclair LawnSite Senior Member
    Messages: 336

    I'm in the process now of becoming an LLC filled out the papper work had my cpa look at it and mailed it in with $70.00 just waiting for it to come back now.

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