To incorporate or stay sole-proprietorship?

Discussion in 'Starting a Lawn Care Business' started by MY Florida, Dec 20, 2005.

  1. MY Florida

    MY Florida LawnSite Member
    Messages: 4

    I have bid on a few commercial jobs and the owners are asking for proof of workers comp or proof of exemption. I do not carry workers comp insurance as I work solo or with my son. Here in Florida we are not requiered to carry it unless we have 4 employees, but the state will not provide proof of exemption unless the business is incorporated. Looks like I need to get incorporated. It is not a real big deal to do so, just wonder what you guys think and if you have any advice on the matter.
  2. bobslawncare

    bobslawncare LawnSite Member
    Messages: 15

    If you are a partnership and both carry a general liability policy, doesn't that cover what they need. I would check with your insurance company before incorporaing.
  3. Darryl G

    Darryl G LawnSite Fanatic
    from CT
    Messages: 9,497

    The reason many commerical jobs require workmens comp is so that you won't be looking to sue them if someone gets hurt. A simple indemnity clause in your contract, where you agree to indenify (hold harmless) the business should be sufficient unless they're real sticklers. I would think long and hard before I incorporated a small business. I looked into it and an LLC was the way to go for me.

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