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  • xandrew245x
    started a topic Being a legit company

    Being a legit company

    Heys guys, I want to get my business off on the right foot and be a legit company. I have some good questions I hope you guys can answer.

    First off I was going to go straight for an LLC, but I read you should just start with a sole proprietorship. From what I understand you would have to go to all the cities you plan on working in and register your name, which could be a couple hundred dollars a year when all said and done.

    With an LLC from what I understand you pay a fee to become an LLC and that's it(about $300 for me) Is there any certain advantages to a sole proprietorship that it would be worth paying the couple $100 a year? I know with sole Proprietorship you can be sued for everything you have. What would be a better choice?


    Second, Licensing. I did a little looking and I think all I need is a business license, I'm not getting into any landscaping other than mulching and installing edging, small stuff like that, so I shouldn't need a contracts license.

    Third, Quarterly taxes. With my LLC they will also apply for my tax identification number and everything else needed. My question is, i'm small right now and I don't have much income for my business, since I don't make very much, will my quarterly taxes be a small amount I could easily pay until I can grow my business.

    Registering as a LLC, I have 2 other options for my name if my primary one is taken. I already have everything made up as Peck's Lawn Care. I want my llc to be Peck's Lawn Care LLC, so should I just do a doing business as and make it Peck's Lawn Care so I will have that name no matter what?


    I really want to start my business the right way, and my goal is to be completely legit by next year.

  • xandrew245x
    replied
    i don't know what state you live in but a sole proprietor is the lowest tax rate you can have and it is the same as a individual.

    as far as 30% is concerned that is gonna be closer to what you will pay come tax time if you turn a profit or have any money sitting in your account.


    .
    Isn't this why most business spend money at the end of the year? I know my parents always spend a good bit of money at the end of the year.

    Leave a comment:


  • dpld
    replied
    I used legalzoom. I started a few months ago and am set as a LLC.
    In the unlikely event of serious injury, the LLC is a firewall to keep you from being personally sued by an employee.
    LLC's pay less taxes. I only pay myself the minimum I need to survive and leave the rest in the company account to let it grow. If you are a sole proprietor, expect to pay close to 30% taxes on everything. I expect to pay something like 5% on whats left with the company. Unless you are a weekend guy then get a LLC. If you are a weekend guy then work for cash. You dont even have to have a license at all to perform lawncare in my county/ state in the business is your name ie "John Doe Landscape"

    i don't know what state you live in but a sole proprietor is the lowest tax rate you can have and it is the same as a individual.

    as far as 30% is concerned that is gonna be closer to what you will pay come tax time if you turn a profit or have any money sitting in your account.

    as far as protections go, as long as you have the proper insurance and as far as employee's go workers comp you pretty much have nothing to worry about other then if you were found to be at fault.

    for example if your guy loses a eye string strimming and you did not supply the proper PPE ( personel protection equipment ) and had the sheild removed that could be a issue that could cost you.
    or if you disconected the saftey shutoffs on your mowers and your worker slipped and it ran him over and seriously injured him you will go belly up.
    but, if your worker got injured by the mower and all saftey mechanisms were in place as well as he was wearing the required PPE's then that would be a workers comp case.

    the main protections a business owner would have as a corporation is they can not go after your personal assets in the event that your actions or neglect were the cause of someones injury.
    but that is what we have insurance for and unfortunately too many people start businesses without insurance and some think that by incorporating they can buy time to get insurance.
    i am not saying that is the case with you i am just speaking generally and if you don't have insurance being a corporation or even god all mighty is not going to help you.

    Leave a comment:


  • xandrew245x
    replied
    Not that I'm aware of.

    I did need to apply for and be approved (and pay a one time fee) for a home occupancy permit from my local municipality. (In order to operate a business from my home)

    Getting everything squared away is the worst part. Any time you ask a question the reply is "consult you attorney", or "ask your accountant".
    Yeah, that's great if you have such people available, but I didn't have money to buy lunch when I started, so "an attorney" wasn't an option.
    Yeah, I will need an occupancy permit, i'm sure of that. That is really easy to get though. I think I'm going to call my moms accountant, i'm sure she would answer questions for me for free.

    Leave a comment:


  • Hedgemaster
    replied
    Not that I'm aware of.

    I did need to apply for and be approved (and pay a one time fee) for a home occupancy permit from my local municipality. (In order to operate a business from my home)

    Getting everything squared away is the worst part. Any time you ask a question the reply is "consult you attorney", or "ask your accountant".
    Yeah, that's great if you have such people available, but I didn't have money to buy lunch when I started, so "an attorney" wasn't an option.

    Leave a comment:


  • xandrew245x
    replied
    why is that? is your parents business doing good? the bottom line in life is making money and no matter what you do in life it is gonna get old.
    you like doing lawns probably because it is something different but it will get old too.

    a business, career or a job is just a means to make money so you can afford to do the things in life you really enjoy.

    it's funny how the grass always looks greener from the other side of the fence, no pun intended.
    Their business is doing okay, not one of the best years but its hanging in there. They have been in business for over 50 years, but its just not something i'm interested in doing. I actually enjoy lawncare, but like you said it will probably get old, but who knows until you try.

    Hedge, do you need a business license? If not then I don't think i'll need any licensing except for if I do mulch.

    Leave a comment:


  • Hedgemaster
    replied
    The man whose name cannot be pronounced pretty much nailed it all in his first post.

    I was freaking out oer these samme issues and when I asked some people in the know, they all said to start as a sole proprietor for the simplicity, AND because it's SIMPLE to change to an LLC later, but to "dissolve" the LLC costs some time and (maybe) money.


    You need to check with your state about licensing/registration - it varies.
    In PA, there is no "license" for general lawn care.

    Leave a comment:


  • dpld
    replied
    These are start ups and part timers. They come and go. These are the people that drive down prices. Then they go out of business or get a good paying job.
    yes, but whether they succeed or fail there will always be many more to take their place, it is a vicious cycle but even if only 1 out of ten succeed after a while it just adds one more business to a already flooded industry.

    when i started out we had about 70 companies in my county and i always said there is plenty of work for all of us.
    now 23 years later there is about 1,200 legit companies and that don't even include the untold hundreds of no names.

    boy did i change my tune and i am thankfull i got into when i did because if i were starting out today i would not even come close to what i got now and i am sure i will eventually have my fill and call it quits to find greener pastures.

    Leave a comment:


  • WorkForMySelf
    replied
    I used legalzoom. I started a few months ago and am set as a LLC.
    In the unlikely event of serious injury, the LLC is a firewall to keep you from being personally sued by an employee.
    LLC's pay less taxes. I only pay myself the minimum I need to survive and leave the rest in the company account to let it grow. If you are a sole proprietor, expect to pay close to 30% taxes on everything. I expect to pay something like 5% on whats left with the company. Unless you are a weekend guy then get a LLC. If you are a weekend guy then work for cash. You dont even have to have a license at all to perform lawncare in my county/ state in the business is your name ie "John Doe Landscape"

    Leave a comment:


  • dpld
    replied
    Thanks, I'll look into it and see what I can find out. It's sad that this industry has gone downhill, I see a lot of lawn care companies around here that don't even have a name on their truck or trailer.

    I will inherit my parents business someday, but that's honestly not what I want to do for the rest of my life, I would rather do something I enjoy.

    why is that? is your parents business doing good? the bottom line in life is making money and no matter what you do in life it is gonna get old.
    you like doing lawns probably because it is something different but it will get old too.

    a business, career or a job is just a means to make money so you can afford to do the things in life you really enjoy.

    it's funny how the grass always looks greener from the other side of the fence, no pun intended.

    Leave a comment:


  • xandrew245x
    replied
    Well anyways, I'm sorry didn't mean to cause any hard feelings.

    Leave a comment:


  • xandrew245x
    replied
    I know it does, but thats honestly not how I meant it at all.

    Leave a comment:


  • wat5150
    replied
    It's sad that this industry has gone downhill, I see a lot of lawn care companies around here that don't even have a name on their truck or trailer.

    .[/QUOTE]

    Seems like one sentence to me.

    Leave a comment:


  • xandrew245x
    replied
    Just because your name isnt on your truck means your part of the decline???? Well thats just a bunch of stupid bullsh!t! Dont make assumptions based on someone not having a logo or a flashy name on their truck. Thats judgemental and plain ignorant. For all you know that guy with no name or logo on his truck could be as legit as anyone and doing quite well. I know several people in my area that are legit and dont have their name splashed all over and are doing well. Just a stupid comment....Sounds like high school.
    Actually wat, my two comments had nothing to do with each other, maybe I should have made it more clear. I was saying its sad that the industry is declining. Then that was the end of that statement. Then I was just making a general statement that I see a lot of companies around here without any kind of logo or name on their vehicles or trailers, if I was them I would take advantage of prime advertising space. Sorry for the confusion.

    Leave a comment:


  • wat5150
    replied
    Just because your name isnt on your truck means your part of the decline???? Well thats just a bunch of stupid bullsh!t! Dont make assumptions based on someone not having a logo or a flashy name on their truck. Thats judgemental and plain ignorant. For all you know that guy with no name or logo on his truck could be as legit as anyone and doing quite well. I know several people in my area that are legit and dont have their name splashed all over and are doing well. Just a stupid comment....Sounds like high school.

    Leave a comment:

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