Sole proprietor for solo op?

Discussion in 'Starting a Lawn Care Business' started by SECT Lawncare, Jul 13, 2018.

  1. SECT Lawncare

    SECT Lawncare LawnSite Member
    Messages: 7

    I made a thread the other day about receiving credit card and online payments for a side business and everyone steered me towards actually starting a business to avoid irs backlash. I figured since a good majority of people looking to hire me ask about paying with credit cards that starting a legit business is my best option. My question now is what type of business should it be? A sole proprietor or LLC? I plan on always staying a solo op as I have a full time job and just mow after work and on weekends sometimes. From what I’ve read there isn’t much difference between a S.P. and a single owner LLC. And another question I have is all my equipment I paid for with my own personal money, if I go legit do I need to somehow transfer the equipment to the company for tax purposes?
     
  2. Mark Stark

    Mark Stark LawnSite Member
    Messages: 172

    Get a simple DBA. If in business after a single season, become an LLC. Get insurance. Check your states business laws. Contact a CPA (free consultation).
     
  3. SECT Lawncare

    SECT Lawncare LawnSite Member
    Messages: 7

    What’s a DBA? I know what it stands for but have no idea how it works
     
  4. Patriot Services

    Patriot Services LawnSite Fanatic
    Messages: 15,733

    Its basically a legal announcement that a person or company will be doing business under an assumed name. Back in the old days it was in its iwn section of classifieds in newspaper. Now its on a local or state database. Legalzoom or other site can help you with that. Its required whether sole prop or any incorporation.


    https://www.legalzoom.com/knowledge/dba/topic/dba-defined
     
  5. weeze

    weeze Banned
    Messages: 14,644

    you can do business as yourself under your name as a contractor. you don't need anything. you just have to file it when you do your taxes as income like you have 2 jobs....which you do.
     
    Cjames808 and Greencuts518 like this.
  6. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 13,644

    Isn’t that essentially what a sole prop is?
    “Hey this is me , give me money for stuff I do”?
     
  7. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 13,644

    If you only have the contracting as one job you don’t have to file like you have two jobs.
    You can just file as you being self employed.
    Although there are tax advantages to doing it both ways
     
  8. JimsLocalLawn

    JimsLocalLawn LawnSite Senior Member
    Messages: 993

    sole proprietor means you are the business. LLC means the business is it's own entity, you just own / work for it.

    DBA stands for doing business as name. You don't NEED a DBA unless you are advertising a business name.
     
    weeze likes this.
  9. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Messages: 13,644

    Taco Bell DBA just about every restaurant that doesnt sell burgers.

    you mean like that?
     
  10. SECT Lawncare

    SECT Lawncare LawnSite Member
    Messages: 7

    So with a dba i would file for a trade name with my town, from there i would get an ein so i would be able to open a business checking account? and then income i receive would go into the business account? And then from there how would i either take money from the account or pay myself back for the equipment? as far as taxes would i be filing as self employed or as part as my normal taxes from my day job (1040ez i think its called). Sorry for the million questions
     

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