Legal or illegal?

Discussion in 'Starting a Lawn Care Business' started by Slcareco, Jan 6, 2006.

  1. Slcareco

    Slcareco LawnSite Senior Member
    Messages: 682

    Should the beginer start off not licenced, insured for the first season or no? corporation or sole? why and whats the difference between the two?
  2. lawnsbyrj

    lawnsbyrj LawnSite Member
    Messages: 147

    sole proproitor is fine fully legal, you do need to get a liscense if your area needs that and you would be crazy not to have general liability.
  3. Slcareco

    Slcareco LawnSite Senior Member
    Messages: 682

    whats the difference between the two? and if i filed for a sole could i change it later on?
  4. turf dog

    turf dog LawnSite Member
    Messages: 108

    You should always carry insurance if your a business. Sole prop or S corp. Hire a cpa and do some searches on here about the two entities and find out which one is best suited for your business.
  5. DeereHauler

    DeereHauler LawnSite Senior Member
    Messages: 604

    if you plan on working alone sole pro. is gonna be what you want. if you don't have employees, or charge sales tax you can file taxes under your social security number.

    it all has to do with paper work, and the fine details. the less the better. i took a class at a college, and learned about some of this.

    every area is different on lisences, check it out with local govt.

    NEVER work without insurance!!! if you wanna start out on the completely wrong foot, that would be the ticket. i pay about $400 a year for $500,000.00 liability. even if you decide you don't wanna mow anymore, you could cancel the insurance.
  6. 6'7 330

    6'7 330 LawnSite Bronze Member
    Messages: 1,821

    You can begin your business venture as a sole proprietor if necessary, and incorporate later as your business expands,take on employeeÂ’s etc.The best advice is as mentioned above, talk to a CPA, or tax professional. Most defiantly look into what the local, county, and state license requirements are.Purchaseing Liability insurance is a given.
  7. Slcareco

    Slcareco LawnSite Senior Member
    Messages: 682

    with a sole can you write stuff off like dinner expense, calculator, computer, etc or is that just for a corp?
  8. MEDIC470

    MEDIC470 LawnSite Member
    Messages: 21

    You can NEVER have enough insurance!!
  9. Soupy

    Soupy LawnSite Gold Member
    Messages: 3,125

    See above advice and talk with an accountant. They are worth their wait in gold. What I mean is they more then pay for their self.

    Insurance - $300
    Good accounting software - $200
    Talking with an accountant - $100
    Starting a business on the right foot - Priceless
  10. Trinity Lawn Care  LLC

    Trinity Lawn Care LLC LawnSite Senior Member
    from NJ
    Messages: 946

    Definitely hire an accountant and discuss your game plan with him/her. An accountant will usually give you a 1st consultation for free. They will get you on the right track. In my opinion it would be a very bad move to do business without Gen Liab. it is not that expensive and can end up saving your rear "IF".

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