LLC or S-Corporation?

Discussion in 'Starting a Lawn Care Business' started by Hobson, Sep 9, 2008.

  1. Hobson

    Hobson LawnSite Member
    Messages: 3

    I'm trying to do all the leg work right now to startup a lawn care business for next spring, but I'm not really sure which would be the best to use as a business entity for this type of business. LLC or S-corporation, or does it even matter. I'm just want to see what the norm is.
  2. edgeman2003

    edgeman2003 LawnSite Member
    from md
    Messages: 188

    I currently do the sole since it just me and my first year. But one day when I add a couple of guys, then I will go LLC. Build the client base first. depending on how many accounts. make sure you have good insurance if anything were to happen( 1 million dollar +). Thats all you really need
  3. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Messages: 9,296

    Good advice I think, per above.
    Don't bother with incorporation first year - build your base and be plenty insured.
  4. tedfrk

    tedfrk LawnSite Member
    Messages: 120

    i chose to go with cost 125 bucks if you do it online.thats for nj though.look up your state gov.and look at starting your own business .i spoke to a very good accountant and he suggested this route also.
  5. kleankutslawn

    kleankutslawn LawnSite Bronze Member
    Messages: 1,185

    i set up mine as a s-corp.i learned the hard way
  6. VAMower

    VAMower LawnSite Member
    from VA
    Messages: 78

    Check with an accountant in your state. In my state an LLC can chose how it wants to be taxed: LLC, S-Corp or Sole. Also, with an S-Corp in my state you have to name a board of directors and submit annual statements to the the state which was more paper work and expense on an annual basis.

    Also, don't forget to get an Federal Employer Identification Number from the IRS if you plan to have any employees. Its free and only takes 15 minutes to call them and get it set up.
  7. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Messages: 9,296

    Hob - why do you want to incorporate so fast?

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