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Mattcrump
11-02-2010, 10:51 PM
Can anybody check out this ad and tell me what they think?

http://bham.craigslist.org/grd/2023970180.html

Its an Exmark walk behind. It will be my first one... any opinions, suggestions, tips? I am going to look at it tomorrow

CHEESE2009
11-03-2010, 01:04 AM
Damn, be careful friend. That is one low low price!

It'd make sense if the frame didn't come with everything else... lol


That looks fishy... Any opinions?


A price that low could be a scam, or really beat up equipment.

wandfsmall
11-03-2010, 11:55 AM
it is fall so I would not say it is going to be a bad unit. I have bought a 60" Grasshopper for 900 that ran great before. Sometimes deals come up. Make sure it runs and look at the belts before and after you run it to watch for wear. Other then that good luck.

Local Edge Lawn Care
11-03-2010, 05:14 PM
Nah it doesnt look like a scam at all, im surprised this will be your first you say? You will love it and want more, what ever accounts you have now you will be able to get them done close to half of the time now, any <a href="http:\\www.localedgelawncare.com">lawn care</a> company should have a few... just make sure it runds good, turns like it should and no strong vibrations when the blades are on, like if a car tire is out of balance.. A new mower such is that is less than 3 grand at least here in UTAH they are. good luck with your new mower..

<a href="http:\\www.localedgelawncare.com">www.localedgelawncare.com</a>

Steve
11-03-2010, 10:26 PM
Did you check out the mower in person? How did it look and run?

Mattcrump
11-03-2010, 11:53 PM
Thanks a lot for the advice guys! Did not have a chance to take a look at it yet. Spent all day working and picked up three new residential accounts along the way. It seems like people are begging for a lawncare company right now for some reason.

Had to go to the courthouse and get my LLC filed... That took hours unfortunately.

That ad has been up for a few weeks. Nobody around here is looking to buy anything right now except for me it seems. I'll gladly take it. I am actually thinking about offering $900 cash and see if I can get away with it.

Thanks again

Steve
11-04-2010, 12:05 AM
Had to go to the courthouse and get my LLC filed... That took hours unfortunately.

Matt can you tell us a little about this process?

A lot of members consider filing an llc.

What made you choose that and did you do it yourself or with the help of an attorney?

What advice do you have for others thinking of filing an llc?

Local Edge Lawn Care
11-04-2010, 12:19 AM
Not sure how it is in your states but here in utah we have a website something like utah.gov and you can file LLC, INC, register any business you want and its only $70 bucks and if you have all of your info it only takes about an hour and you have your EIN numbers and all.. May I suggest not going with a llc though? my CPA switched me over to a S corp a few years ago, its the best thing i have ever did mainly for tax purposes, Your able to take a very small pay check and if you need more you take whats called a draw so its a business expense, and not a payroll tax etc. hope this helped?

Justin

http://www.localedgelawncare.com

Steve
11-04-2010, 06:36 PM
Justin,

That is very interesting. What was it that your cpa didn't like about the LLC? What made you go with an llc initially?

Mattcrump
11-04-2010, 11:09 PM
Matt can you tell us a little about this process?

A lot of members consider filing an llc.

What made you choose that and did you do it yourself or with the help of an attorney?

What advice do you have for others thinking of filing an llc?


Sure Steve,


And thank you Justin for the advice. At some point I may definitely switch from the LLC to the S corp. However, starting out I was advised by my attorney to go with the LLC. If my company starts growing and we start seeing good profit returns then we will definitely make the switch. It is getting very cold here in Alabama now but we rarely get snow. So no snow plowing but also not much yard work either. We will slow down here in a month or so and go to the drawing boards. Once spring gets here we will be so busy we may have to start hiring employees. Especially if I am able to pick up some of these commercial properties I am in negotiations with now.

Steve,

Setting up an LLC can be very easy. IF you know the process your state has set up for you to do so. If you do not then it is a huge pain in the butt. My attorney drew up the LLC for free for us so that helped. We then had to find the probate judge office in downtown Birmingham. I of course carry cash and a debit card which didn't do me much good because they required me to make out a $40 check to the sec of state and the a $51 cash charge to the probate judge. If I had a check on me I wouldn't of had to run half a mile in the cold rain to a bank to get a money order. After I returned the process was simple and painless. Takes about 5 minutes if you bring cash and a check with you as well as two original signed copies of your LLC.

Once my fiance finishes her CPA this year, I will have a free accountant who can take care of that S corp issue for me. Until then I don't know that we are going to have much of a profit to worry about paying taxes anyways.

Steve
11-05-2010, 06:42 PM
Once my fiance finishes her CPA this year, I will have a free accountant who can take care of that S corp issue for me.

Oh that is great! As you go, I'd love to hear some of the general issues she points out to you on improving your operations. I bet other members on the forum would greatly appreciate any insight she has to share.

Local Edge Lawn Care
11-06-2010, 09:32 PM
Ya not sure why your attorney or fiance would let you spend the money on a llc versus paying the same cost for an S corp and saving you the hassle of needing extra paper work in the future and the cost of the change form?

Steve and everyone just so you all know, the llc and S corp protects you all the same as far as a business owner, the llc gives you more room to change % of the business if there is more than one business owner, the S corp once the stock shares are divided they are set and more paper work to sale the shares are needed, but if your the sole business owner then no need to worry about all of that.. The biggest reason no matter how much your business make or not is because as an LLC if you make 10,000 and pay yourself 5,000 the company has to pay taxes on the entire 10,000 as self employment taxes, as an S corp if you make 10 grand and pay yourself 5 grand then you pay employment taxes on your personal 5 grand and the company writes off your 5 grand and the remaining 5 grand you write off on gas equipment etc, without needing to pay.. if all of that makes sense? I know state to state laws change but no matter how you slice the pie the IRS is the IRS, hope this doesnt offend anyone just giving some good advice that has saved me 100s of thousands of dollars over the year..

Justin in salt lake city (http://www.localedgelawncare.com)
www.localedgelawncare.com (http://www.localedgelawncare.com)

Mattcrump
11-07-2010, 12:22 PM
Hey Justin,

Not offended at all. In fact I definitely welcome your advice. My girl is not licensed yet so she doesn't yet know all of the risks or benefits for everything. My attorney is my cousin who practices a certain type of law. Needless to say it has nothing to do with starting businesses. She just has the power to do so. I doubt she knows too too much about the differences in my case either. I am glad to get your opinion.

How hard and how expensive would it be to change from an LLC to an S Corp? Any idea?

Does it matter that I have two business partners and we all own 33.3% of the company?

Steve
11-07-2010, 05:55 PM
Well,

As Justin was saying, with the S-Corp, you can divide the stock shares anyway you like it.

The biggest reason no matter how much your business make or not is because as an LLC if you make 10,000 and pay yourself 5,000 the company has to pay taxes on the entire 10,000 as self employment taxes, as an S corp if you make 10 grand and pay yourself 5 grand then you pay employment taxes on your personal 5 grand and the company writes off your 5 grand and the remaining 5 grand you write off on gas equipment etc, without needing to pay.. if all of that makes sense?

That is fascinating!

I think one of the differences between the c-corp and the s-corp was that the c-corp has to pay taxes first on the income and then when you are paid, you have to pay taxes on that income. So the income is then taxed twice. This doesn't happen with an s-corp though.

How hard and how expensive would it be to change from an LLC to an S Corp? Any idea?

Matt,

Check this out.

http://money.cnn.com/2008/04/09/smbusiness/scorp_or_llc.fsb/index.htm

Mattcrump
11-07-2010, 10:52 PM
I read that article... However, I need to find one that is exactly it's opposite now. I may want to turn my LLC into an S-Corp instead of the other way around like the article talks about. Right?

Local Edge Lawn Care
11-08-2010, 12:16 PM
Hey guys im really sorry, I didnt mean to cause any problems about the S corp or LLC, stuff.






Justin in salt lake city (http://www.localedgelawncare.com)
www.localedgelawncare.com (http://localedgelawncare.com)

Steve
11-08-2010, 07:15 PM
There seem to be a bunch of articles out there on converting an llc to an s corp.

I found another one here.

http://www.llccorporationblog.com/2008/05/converting-an-llc-to-a-corpora.html

Mattcrump
11-10-2010, 11:25 AM
Not at all Justin, I am glad you brought it up because it is something I definitely need to talk to an accountant about

Local Edge Lawn Care
11-10-2010, 12:01 PM
Well im glad, cause im new on here and then here I am rambling off and such, I didnt want you or anyone to think that i was attacking you or anyone just offering advice of a very expensive lesson learned on my part before i switched cause i had no idea in the beginning.. But that is one good thing about advice you can either take it or leave it, but I just wanted to make sure I didnt offend anyone on here..


Justin in salt lake city utah (http://www.localedgelawncare.com)
www.localedgelawncare.com (http://www.localedgelawncare.com)

Mattcrump
11-11-2010, 12:07 AM
Not at all man... I've been on here for two weeks myself. In fact my company is just a few weeks old and we are already getting so much work we can barely stay on top of it all. I just got the chance to bid on doing the irrigation and landscape installs for a new Olive Garden and Red Lobster here in Birmingham. However, it is just a big parking lot right now and I don't know the first thing about digging through gravel. I am in over my head and learning a lot every day. I definitely welcome the advice.

Steve
11-11-2010, 01:28 AM
Matt,

With that irrigation job, if something is outside your scope, do you prefer to pass on it or are you looking to just take what ever you can get your hands on and learn as you go?

Mattcrump
11-12-2010, 10:43 AM
Both Steve! I am used to learning on the go and being thrown into the fire so to speak ... However, I am not going to do something stupid that is going to get me or my company into trouble or make us look bad so I have got to decide whether or not to pass it on

Steve
11-14-2010, 02:30 AM
Well keep us posted on what your final outcome of this job is. It will be interesting to hear your story either way.