How to reduce liability

Discussion in 'Hardscaping' started by Newguy25, Sep 6, 2010.

  1. Newguy25

    Newguy25 LawnSite Member
    Messages: 120

    Hey guys and gals,
    My company is starting to grow and I am doing bigger installs now then I have ever done. What suggestions do you have on reducing my liabilty? I am still a DBA and plan on more growth and employees. How can I protect what I have and own. House etc. I have liablity insurance but I just don't feel like its enough now with how everyone is out to sue everyone. How do some of you guys with lots of employees and bigger headaches then me sleep at night???? Thanks!!!!!!!!!
  2. JB1

    JB1 LawnSite Fanatic
    Messages: 5,903

    .. incorporate..
  3. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Messages: 6,567

    As far as your house:

    1) If you are a sole propertiership(sp) and your house is in more than 1 name (your wife, domestic partner, parent, sibling, etc) - then no one can get your home. UNLESS if the other party listed on the deed is also listed as an owner of your sole proprietorship business.

    2) If you are a sole propertier(sp) and your home is only on your name - then it could be taken.

    (Now, I'm certain someone here will chime in and say "no one here is qualified to distribute such advice, you need to talk to an attorney". While that may be true, what is written above is 99.6% accurate.)

    3. As far as become an INC or an LLC - really, your CPA (I said CPA, not attorney) would be of best counsel. It boils down to filing of taxes, and issuing of your salary. Then, after you determine which entity to do - you could then possibly have an attorney files the papers.

  4. shovelracer

    shovelracer LawnSite Silver Member
    Messages: 2,008

    Protection is a funny thing. Protecting yourself from a client suit is different than getting caught not paying taxes. As for the rest you should have workers comp and an umbrella policy is also a good idea. Also you should have an umbrella on your home.
  5. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Messages: 6,567

    Shovel racer - you are 100% correct.

    However, not paying taxes has nothin to do with disephering which entity (S Corp, C Corp, LLC, or Sole Prop). Which really shoude be the 1st thing one does when they venture into any type of business.

    Each entity has different configerations of how you file taxes, collect draws, paychecks, etc. One would have to sit down with a CPA that is familiar with their operation and revenue and discuss which entity would be better.

    LLC's are quite popular, even in the corporate world.......


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