Indiana LLC TAX questions

Discussion in 'Business Operations' started by ATVracer, Mar 5, 2007.

  1. ATVracer

    ATVracer LawnSite Senior Member
    from Indiana
    Messages: 346

    Just recently got certified to do pesticide apps. I am going to form a LLC for protection and I am doing it myself through the state. My question is how is a LLC taxed? How often do you send it taxes or is it done at the end of the year like personal taxes? I currently do not charge sales tax. Should I also start doing that and does the sales tax go by the 6% state figure? Not going to waste my $ having an accountant or lawyer write up my formation. It costs $90 through the state and is a 1 page form. Sorry for the questions but I want to be 100% legit(although I already am for my mowing business).

  2. motoguy

    motoguy LawnSite Member
    Messages: 78

    "Not going to waste my $ having an accountant or lawyer write up my formation"

    From your questions, it sounds like it would be a good investment, vs a "waste". A few hundred bucks now could mean -thousands- by the end of the season.

    We called an attorney, who suggested we see a CPA (due to our tax questions). The CPA gave us a solution that we didn' t expect / hadn't even thought of. And it's going to be worth thousands of dollars to us.

    It's my thought that refusing to pay a few hundred $ for a proper, educated start-up is -very- much a false economy.

    FWIW...the original atty didn't charge for the phone call, and our educational visit with the CPA was free. The CPA suggested that our attorney be in touch with him when drafting our operating agreement, to make sure we have both maximum legal protection, and maximum tax advantages.
  3. green horizons

    green horizons LawnSite Member
    from zone 5
    Messages: 144

    Forming a corporation can easily be done without help from a lawyer. I have a lawyer. He wanted $900 to form my corp. That's outrageous. The most important part of being inc.'d is to keep business and personal separate. As he put it, "..if you're incorporated and buying beers with the corporate credit card, then you'll have no legal protection." Again, he wanted crazy money for this tidbit of info. The other aspect was the actual formation of incorporation... He suggested that S-corp. is more appropriate than LLC. He stated that LLC is for business that own land (shops, retail, etc.). If you work from your barn, S-corp. is better. I'm not a lawyer, I don't play one on TV. My advise is seek legal counsel. Better safe than sorry.
  4. Daily Lawn/Landscape

    Daily Lawn/Landscape LawnSite Senior Member
    Messages: 695

    I am going through this as we speak. It only cost $750 and everything is done. No chance of anything going wrong. Also talk w CPA to see what is best for you. Find a CPA that will work w you.It may cost a little now but save you a lot latter.

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