What is better LLC or Sole proprietorship??

P

POWER STROKE

LawnSite Senior Member
Location
Grand Rapids, MI
I am thinking of doing a LLC or Sole Proprietorship.
What would be best? As of right now it is just me no employees, also right now I only have 25 customers.

Thanks in advance for any help or replies.
 
DA Quality Lawn & YS

DA Quality Lawn & YS

LawnSite Fanatic
Location
Rochester, MN
NEW CITY LAWN CARE LLC said:
Yes LLC, Indemnify yourself from personal responsibility should the company be liable for an accident, etc....
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Either one, depends on your biz plan and the risk you intend to take on. If you are a small solo op, you may not need the llc as you can insure away most to all of your risk with a 1mil or 2mil General Liability policy. There is no difference in the taxes you will pay either way.

For me, does not make sense to llc. I can see a need in the future though as my biz evolves.
 
Florida Gardener

Florida Gardener

LawnSite Fanatic
Location
Humid S. Fl. with sights set on San Diego
DA Quality Lawn & YS said:
Either one, depends on your biz plan and the risk you intend to take on. If you are a small solo op, you may not need the llc as you can insure away most to all of your risk with a 1mil or 2mil General Liability policy. There is no difference in the taxes you will pay either way.

For me, does not make sense to llc. I can see a need in the future though as my biz evolves.
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I have to disagree. If someone had a lawsuit against you as a SP, they can go after all of your assets.
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OP
P

POWER STROKE

LawnSite Senior Member
Location
Grand Rapids, MI
Thanks guys for your help and replies
 
DA Quality Lawn & YS

DA Quality Lawn & YS

LawnSite Fanatic
Location
Rochester, MN
Then carry enough GL to insure away your risk guys. As a solo, I feel comf. with 2mil of GL. That may not be the case as my biz grows. Everyone's situation is different.
 
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