Structuring my business....LLC?

Discussion in 'Lawn Mowing' started by dogdjour, Apr 23, 2011.

  1. dogdjour

    dogdjour LawnSite Member
    Messages: 31

    I mow part time 10-12 yards.
    Licensed and insured.

    Should I form an LLC?
    I already have insurance then I'm protected for liability right?

    Is there a reason from a tax viewpoint?
  2. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Messages: 7,051

  3. CLS LLC

    CLS LLC LawnSite Senior Member
    Messages: 487

    There is not a tax benefit. The benefit is if your business were sued for something they couldn't take anything you personally own, but only things the business owns. Insurance is great, but there is always a chance that you will be sued for more than your insurance limit and if you are a sole proprietorship they can take all your personal assets to cover the debt. It's a small price to pay for peace of mind. In Wisconsin it cost's $125 the first year and $25 a year after that.

    That being said, whether or not you do it is entirely up to you.
  4. doubleedge

    doubleedge LawnSite Senior Member
    from ND
    Messages: 911

    Don't you also have to pay corporate tax on top of what you pay on your salary? I have never really liked the idea of getting taxed twice.

    I'd see how much $1 million liability insurance costs first. That way, you don't have to loose anything in the event of a lawsuit.
  5. ALC-GregH

    ALC-GregH LawnSite Fanatic
    from PA
    Messages: 7,051

    unless the suit is for 2 or even 3mil. Then you loose everything and your mother. Don't get me wrong, a mil policy is a good amount to have in any case.
  6. 93Chevy

    93Chevy LawnSite Fanatic
    Messages: 37,804

    There's no reason not to from an LLC. I'm an LLC and I barely work at all anymore with my new full time job. I bank literally under a thousand a month with my business and I'm still an LLC.

    NEW CITY LAWN CARE LLC LawnSite Bronze Member
    Messages: 1,271

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