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Discussion in 'Starting a Lawn Care Business' started by pennypincher, Mar 17, 2006.
How many out there are LLCs and do you find an advantage for doing business this way?
I have two LLCs and my mowing company I did a Sole Proprietorship. The LLCs are setup out of Nevada due to the fact that Nevada has statutes written to protect the Members and are taxed only at the Federal level. North Carolina has Corp Income Tax as well as Individual Income Tax. That means there is no way in hell I would for an LLC or Inc in that state. I would setup somewhere friendly to companies. I have a LLC which will invoice my Texas SP therefore the money flows to Nevada where it is not taxed. I do not pay myself from my SP nor does it make any money. If someone wants to sue me they will have to sue me in Nevada where the will run into my Triple LLC and there is no way they would ever get anything equipment or money wise. That is just a brief high level overview but it is what I do.
Let me clarify that I will be changing my SP into a Inc here in TX. I just wanted to lock in the name while it existed.
protect yourself and your personal assets if you get sued and ur not a corp. or llc they can come after your home and everything. be smart about this
S corp. for landscape/building services/construction-- wifes consulting, Another S for real estate sales. LLC for real estate investment group.
I do the bookkeeping for several lawn care companys and to me the LLC is overkill for the money generated by most of my clients. NC requires an annual report that is a waste of time but you have to pay $200 to file this report. Most people worry about someone taking the house they live in if sued, but most have a mortgage so they would have to get in line behind a bank before that could happen. I understand the fear due to everyone sueing everyone these days. But I have never heard of a lawn care company being sued beyond insurance coverage and never heard of a lawn care business losing his home due to his business mistakes. Just thought I would ask.
I also agree with pennypincher. I run several 52 CYD dump trucks which is why I am so "over" protected, so to me it is nothing to add this company.
Are you a CPA. If your clients don't make enough to warrant being Incorporated you need better clients. And if $200 is something to worry about as far as being protected, than more than likely they have nothing to protect. I have earned a very nice lifestyle and I will use professional people (CPAs & Lawyers) to council me as far as running my business, keeping my money and protecting my family and their comfort.
Maybe it's time to move on. More frustration every day!
My cpa advised me it would not be worth it for me to incorperate because I do not make enough to make it worth it. He also told me being incorperated does not protect you like think, if you are sued. He said lawyers now have found ways to punch right through corperations if they want to. He also told me it's more important to make sure you carry enough COMMERCIAL ins. to cover yourself. I was recently sued for $85,000. My ins co. fought it and awarded $15,000. This is my paticular situation and may vary greatly from others out there.
I would go LLC to cover your ASSets!!
There are two states in the union which actually have anti-corporate vail piercing statutes: Nevada and Delaware. I am not sure how educated your CPA is on other states but I would ask him to read up on these two. I have two attorneys, as well as a dedicated CPA, and they all have advised me to setup my corporate structure through one of these two states with the businesses I am in. If one of my monster dump trucks runs a red light and kills a family of four I bet my life they would try to come aftert me personally so I have made it my business of protecting my family before anything else.