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Tax Advantages/Disadvantages of DBA

Discussion in 'Business Operations' started by ag2112, Apr 6, 2012.

  1. XYZLawnPros

    XYZLawnPros LawnSite Senior Member
    Messages: 395

    One of these days you guys may look into setting up Trusts to
    take the benefits form your companies. Look at all fairly decent
    sized corporations and dig into their finances. You will get my
    drift when you connect the dots.
  2. maelawncare

    maelawncare LawnSite Senior Member
    Messages: 439

    Ditto. Exact reason why I have never went to a LLC. Doesnt matter anymore, maybe in the 90s and before. But now you can and will be sued along with your company. Lawyers dont give a crap anymore. They will go after your grandma if you ever wrote her a check as well.
  3. specialtylc

    specialtylc LawnSite Bronze Member
    Messages: 1,656

    LLC and INC. are basically the same, only real difference is an LLC doesnt need all the officers. But there are tax advantages to being a LLC. The corporation doesnt pay any taxes. As an LLC you can become just an employee, and only pay half as much SS taxes on your income. Basically you dont have to pay as much self employment tax. And if you think LLC dont have the same liability protections as a regular Incorporation. Take a look at the names of some of the large businesses out there. Such as Chrysler Motors LLC.
  4. wbw

    wbw LawnSite Fanatic
    Messages: 5,998

    The only problem with this is that you also pay the other half.
  5. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Messages: 3,465

    about right. around 15% or so total.
  6. cgaengineer

    cgaengineer LawnSite Fanatic
    Messages: 15,777

    This is true...it's limited liability not liability eliminated. LLC would protect your personal assets from bankruptcy but not lawsuits from accidents. If this was the case there would be no need to carry liability insurance.

    I really hate when I see people say this about an LLC....it's not like there is a force field around you and your business!
    Posted via Mobile Device
  7. dc240nt

    dc240nt LawnSite Member
    from NW MN
    Messages: 79

    In a nut shell, if your business is in debt, you better be an LLC
    As far as getting sued from anyone except your creditors, an LLC wont help you. Thats what good insurance is for.
  8. cgaengineer

    cgaengineer LawnSite Fanatic
    Messages: 15,777

    And if you accrued the debt through personal guarantee all bets are off...
    Posted via Mobile Device
  9. DA Quality Lawn & YS

    DA Quality Lawn & YS LawnSite Fanatic
    Messages: 9,229

    As a solo, an LLC gives you no tax advantages over a sole prop.
  10. dc240nt

    dc240nt LawnSite Member
    from NW MN
    Messages: 79

    Agreed. Hopefully, if anyone is borrowing, its being done thru business assets. Keeping it all within the business is a little less stressful then having the fear of losing your house because it didn't rain all summer.

    Incidentally, I took my Daughter to a bank yesterday and noticed a nice Hiniker Snow Plow sitting in their parking ramp. I'm going to check into it and see if its a repo. I like Hiniker Plows!

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