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LLC and INC ....

Discussion in 'Business Operations' started by GraZZmaZter, Dec 21, 2002.

  1. GraZZmaZter

    GraZZmaZter LawnSite Senior Member
    Messages: 740

    Whoops! Looks like i started an arguement. Dont fight guys .... its the HOLIDAYS!!
  2. Darb

    Darb LawnSite Member
    Messages: 182

    OK... first, I was not flaming and if it came across as such I am sorry. Oh by the way, my user name is not Darby it is Darb. However, if it makes you feel closer to me to give me a pet name, then go ahead. :D

    I still stand by what I said about disagreeing with you about LLCs. The point of my contention is your alluding to LLCs as if they were a throw-away company. True, they MIGHT be easier to dissolve than a corporation. I would think that they are easier to dissolve as the requirements for LLCs are less than a Corporation (which is one of the nice things about LLCs). But, that doesn't mean that they are meant to be considered as a short-term operation.

    I hope everyone researches for themselves or gets a lawyer and/or and accountant (I have talked with three different accountants about LLCs and have received three different points of view).

    I mean what I said starting this post out. I am sorry that you got so upset about my post. :angel:

    Darby (but only to nelbuts!!!):D
  3. CMerLand

    CMerLand LawnSite Senior Member
    Messages: 393

    I became an LLC in 2000 and Nelbuts is correct in that LLC's can only function as such for a period of not more then 30 years. (at least according to my formation papers which show a dissolution date of thirty years after formation.)

    LLC's have tremendous tax advantages over Inc. companies as all taxable income falls to the partners, 1040s rather then haveing a corporate and then personal tax burden. As stated, LLCs offer more protection of personal assets vs a sole propriotor, provided the business is kept completely separate from the personal finances.

    A quick example of separation is this, had owned trucks prior to the changeover registered to me personally. After becoming an LLC, I had to transfer title of my trucks to the LLC to separate the business from the personal. If my guys had an accident in a truck personally owned by me, my personal assets "may" have become at risk because the truck wasnt owned by the company. They are now registered to the company with a CORP code vs any personal information.

    Keep in mind however, that no business formation will protect assets from intentional or gross negligence, so dont go dumping your old pesticides down the drain thinking they cant get your house.

    As other suggested, check with a professional accountant and perhaps a lawyer to determine which will benefit your company most.

  4. rockcrusher4x4

    rockcrusher4x4 LawnSite Member
    Messages: 3

    Hello, I am new to the site but just read the post.
    I went to all the attorneys and such for advice on what to do LLC Inc.
    ect, to no real help except it depends on the person and situation,
    I am not sure, but would guess laws are pretty much the same everywhere on this one. I found alot of my info that I needed on the subject on the gov. web sites that list what each entity is and offers for better or worse, can't remember the web site right off hand, but if you search for government on business or state should give you a start. I went as a LLC to start but it's good as long as "I" want it to be, no set date by law here in Michigan! The web sites helped my in answering my questions about the differences I hope they help you!

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