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robertlroot
04-29-2011, 01:10 PM
Hey everybody I just posted an intro so if you want to know a little about me go check that out.

I got a question on starting out a legit business.
What factors come into play when deciding whether you should do business as a incorporated, sole proprietor, LLC, etc.?

And if anyone wouldnt mind posting their business type and why they chose it please do so.

Thanks for all the help.

Tom53
04-29-2011, 03:57 PM
If you google those 3 choices, sole proprietership, LLC, and corporation, you will be able to determine which fits your particular situation.

Things to think about while deciding include, but are not limited to, insurance, employees, equipment, whether you want to take the sole risk, and reap the sole rewards, or share both liabilities and profits, and dont forget with corporations, you have regular meetings of a board, minutes need kept, records must be meticulously kept, tax filings, and a whole host of other things.

If you have doubts consult with your insurance agent to find out what all kinds and how much insurance he would recommend, and consult with your accountant, and or attorney for the rest of it.

If you are going whole hog, and will be borrowing money from a bank for equipment they will require a business plan, and they will be very particular what is in it and how it is written.

Or you can do like the high school kids, and just start mowing, make a little money, and grow slowly.

I guess it boils down to how much you want to work at it to get started, and if you are willing to put the time and effort into learn about business as well as landscaping, mowing, etc.

Whatever you decide to do, I wish you good luck with it.

robertlroot
04-30-2011, 08:09 AM
Thanks Tom

I think I'm going to just start mowing like you said and continue researching and talking to local lawyer, accountants, etc. until I finalize where I would like this business to go.

Steve
04-30-2011, 12:45 PM
What factors come into play when deciding whether you should do business as a incorporated, sole proprietor, LLC, etc.?

Alot of this can come down to the amount of assets you have. If you have assets, you have to realize you can lose them because of something you did through your business if things go wrong, when you are operating it as a dba or sole proprietor.

Limited liability corporations can help shield your assets in case of an unfortunate event by creating a separate business entity that takes on the risk versus you taking on the risk individually.

Does this help?

robertlroot
04-30-2011, 06:22 PM
Alot of this can come down to the amount of assets you have. If you have assets, you have to realize you can lose them because of something you did through your business if things go wrong, when you are operating it as a dba or sole proprietor.

Limited liability corporations can help shield your assets in case of an unfortunate event by creating a separate business entity that takes on the risk versus you taking on the risk individually.

Does this help?

Of course this helps Steve. I'll take every bit of information I can get. Thanks

Steve
05-01-2011, 11:14 AM
From your other posts, I see you are just getting out of school. Keeping what I said about assets in mind, many new business owners, early in their career, tend to go with d.b.a. or sole proprietorship. It's easy to start and cheap. From there you can always incorporate later down the road.

Keep us posted on what you decide to do.