Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > General Business Discussions

General Business Discussions A place to talk about general business discussions.

PLEASE HELP!!! NEW HERE.. GOING LEGIT.. LLC or S-CORP? SO MANY QUESTIONS!


General Business Discussions

A place to talk about general business discussions.
Reply
 
Thread Tools Search this Thread
  #1  
Old 03-17-2013, 09:55 PM
ccproperties ccproperties is offline
Junior Member
 
Join Date: Apr 2011
Posts: 1
Rep Power: 0
ccproperties is on a distinguished road
Question PLEASE HELP!!! NEW HERE.. GOING LEGIT.. LLC or S-CORP? SO MANY QUESTIONS!

HELLO EVERYONE! I'm new on this forum although I have been reading the posts for a while now without posting anything. I would appreciate some guidance if possible.
I am currently running as a DBA. I have gotten much advice about changing to an LLC or an S-Corp but am really unclear what I should do. I am currently my only employee except for some "off the books" workers such as family and friends from time to time for a few hours and my wife that runs the behind the scenes aspect of my company. I am in NY. Some tell me that an LLc is the way to go because its not as complicated and others tell me that an S-Corp is the way to go because I will than be treated as an "employee" of my own company and that has many benefits. I am ofcourse a small business and have been in business for about 3 years now but want to go Legit and do the right thing...but also dont' want to be left poor by the IRS doing so. I feel like I have so many questions...after I set up either entity...
Do I cut myself a check?
How much should I figure on paying myself and how often?
Should I take on an employee other than myself? or if i do so I will than have to worry about paying other expenses
Will I actually be looked at as an employee of my own business?
Should I transfer the business into my wifes name so she can than put ME as the employee?
Once the entity is established will I 1099 myself or W-2 myself??

I would appreciate any advice you can give me!
Thanks!!!!
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 03-17-2013, 10:08 PM
SNethercutt SNethercutt is offline
Senior Member
 
Join Date: Mar 2013
Posts: 202
Rep Power: 3
SNethercutt is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
You gonna get a bunch of I did and I woulds. And I will give you mine.

Talk to an attorney and accountant. They can give you the best options to protect yourself. Costly now, better off later.
Reply With Quote
  #3  
Old 03-17-2013, 10:49 PM
MBLC MBLC is offline
Member
 
Join Date: Mar 2013
Location: Chicago
Posts: 55
Rep Power: 3
MBLC is on a distinguished road
Default

make sure that the attorney you retain is a business lawyer and also not a schlub- made a big mistake on that one that took many a call to the IRS to fix.
Reply With Quote
  #4  
Old 03-18-2013, 06:51 AM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

in most cases a LLC would be suffice and i have been in business for 23 years and i started out as a DBA but changed over to a LLC about 19 years ago.

LLC gives you the best of both worlds, you get the protections of a corporation and the freedoms of a DBA.
as previously mentioned you will get a lot of do this or do that suggestions but one thing i will say to absolutely not do is a S corp, either do a straight up INC, LLC or remain a DBA.


from the sounds of it you are small and starting out and as a result i am sure your income is probably up and down.

although most incorporate for protection purposes, you are small and starting out and the biggest thing you can do to protect yourself is make sure you have commercial auto, general liability and workers comp.
even if you rarely have help the workers comp is based on a dollar amount of payroll revolving around a particular rate per $100.00 in payroll.

in my state and because i have not had any claims my rate is about 6.00 per hundred and it is based on my average yearly payroll.
if i exceed that amount i pay the difference and if i by chance had less payroll then i initially anticipated then i will be credited and the amount will be forwarded to next years policy.

lawyers are good sources for information but they are expensive and will not always give you the best advice from a financial and tax perspective and the most overlooked person in seeking advice on this matter would be a good professional accountant.
accountants can also file for you and get that done for you as well and it would be cheaper.
the cheapest way to doing it would be to do it yourself and you don't need a lawyer or a accountant to do so but you will need to at the very least seek advice from one of the two prior to doing so in order to aid you in making the right choice and as i said, my preference would be the accountant.
by accountant i don't mean a H&R block cut rate accountant but a real quality independent accountant.

good luck.


P.S. why did you use such large and obnoxious text in your post?

Last edited by dpld; 03-18-2013 at 06:54 AM.
Reply With Quote
  #5  
Old 03-18-2013, 10:27 AM
grass guru grass guru is offline
Member
 
Join Date: Oct 2011
Posts: 43
Rep Power: 4
grass guru is on a distinguished road
Default

An LLC does not offer the protection you think it does. If hou cause damage/kill someone, and insurance isnt enough, a judge is not going to deny a "civillian" monetary damages because your lack of coverage. They can sue the business, and if there is nothing there, they can, and will, file a civil, or wrongful death suit against you as the owner.

I was am LLC, but changed to S-corp. My accountant suggested it. He explained it this way. As an LLC, you pay all taxes on ALL business income. Then, if you pull out 40k a year, you pay all taxes on that too. Double taxed.
As an S-corp, you only pay income taxes on business.(no fica, social security, medicaid, etc). You can then take a "draw" from the business, and you would pay all taxes on that draw only. If you make around 50k, it mivht save you around 700 to 1,000/year. You are protected as much as an L LC.
Definately to talk a certified accountantant, and have them do your taxes. Skip the H&R Block, or Jackson Hewitt guys, and go to a local guy.
Reply With Quote
  #6  
Old 03-18-2013, 01:58 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 37,223
Rep Power: 10
Steve has disabled reputation
Default

Quote:
I am currently running as a DBA. I have gotten much advice about changing to an LLC or an S-Corp but am really unclear what I should do
What is your push now to make a change from a dba?

Quote:
have been in business for about 3 years now but want to go Legit
What do you feel about your operation is not legit and how are you thinking an llc or scorp will change that?
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Tags
llc, new business, paying myself, s-corp

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Being a legit company xandrew245x Starting a lawn care business. 21 07-31-2012 11:34 AM
Going Legit element009 General Business Discussions 8 04-02-2012 03:12 PM
Going Legit LuckyClover Introduce Yourself 4 03-05-2012 02:45 PM
Lear corp. / IAC AMW Graphics Truck & Trailer Sign Design, silk screened apparel & uniform discussion 9 04-16-2007 08:03 PM
Go Legit Campaign Steve General Business Discussions 11 04-02-2006 08:11 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Poll & Discussion...
CHEESE2009
09-16-2011 06:16 PM
Today 03:05 PM
by holymoly
23 5,411
lawn care business...
holymoly
Today 02:56 PM
Today 02:56 PM
by holymoly
0 16
color fliers?
holymoly
Today 02:32 PM
Today 02:32 PM
by holymoly
0 14
Hustler Raptor
SGL1
04-13-2015 09:27 PM
Today 07:53 AM
by SGL1
15 336
is craiglist good to...
JBENI
04-16-2015 11:11 AM
Yesterday 10:25 PM
by Wolf4dk
11 211
Pictures of commercial...
avetslawncare
04-01-2015 09:47 PM
Yesterday 09:35 PM
by avetslawncare
20 733
Could be great news for...
SC93
04-14-2015 11:06 PM
Yesterday 08:58 PM
by SC93
10 279
These are the days on...
ExtremeLawncareServices
01-11-2015 10:41 AM
Yesterday 08:40 PM
by ExtremeLawncareServices
53 4,938
Am I missing something...
googus
04-11-2015 06:33 PM
Yesterday 08:01 PM
by avetslawncare
10 366
weed
avetslawncare
04-16-2015 07:56 PM
Yesterday 07:59 PM
by avetslawncare
3 88
Aerating / Dethaching...
Hard-Body lawn & garden
04-12-2015 07:53 PM
Yesterday 07:27 PM
by biglee
14 384
Hello
sonny54
04-16-2015 09:49 PM
Yesterday 03:10 PM
by Steve
1 61
Unreal
Chilehead
04-09-2015 09:12 PM
Yesterday 08:27 AM
by Chilehead
11 416
starting a lawn care...
JBENI
04-14-2015 09:03 AM
Yesterday 08:03 AM
by JBENI
14 372
Finally got a warehouse
avetslawncare
03-12-2015 07:52 PM
04-16-2015 07:52 PM
by avetslawncare
23 1,197
bidding a cemetery....
NPM_LLC
03-28-2015 10:56 AM
04-16-2015 03:49 PM
by Steve
20 820
New 14 x 7 Enclosed...
whitepropertydetail
04-15-2015 06:46 PM
04-16-2015 03:40 PM
by Steve
1 110
quick pic
joshlawncare
04-14-2015 07:49 PM
04-16-2015 03:38 PM
by Steve
3 169
older used dump trucks
SECTLANDSCAPING
09-22-2011 12:33 AM
04-16-2015 12:41 PM
by biglee
21 7,895
Tax Poll
Steve
04-15-2015 02:13 PM
04-15-2015 02:13 PM
by Steve
0 118
lawn care by Aj
aj10261984
04-14-2015 06:50 PM
04-15-2015 01:43 PM
by Steve
2 138
Contact last years...
googus
01-28-2015 08:13 AM
04-15-2015 12:54 PM
by SC93
7 1,129
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 12:06 AM
04-15-2015 08:35 AM
by Bradcook21
7 820
trying to sign up for...
JBENI
04-14-2015 10:20 AM
04-14-2015 12:11 PM
by Steve
1 323
Charging customers for...
Hard-Body lawn & garden
04-14-2015 07:34 AM
04-14-2015 10:35 AM
by Steve
1 152
New member
Jdlandscaping,LLC
04-11-2015 03:24 PM
04-14-2015 05:45 AM
by Jdlandscaping,LLC
2 197
hello
oasis_greenscapes
04-01-2015 06:18 PM
04-13-2015 12:03 PM
by Steve
8 433
New Member
Greenturion
04-11-2015 02:00 PM
04-13-2015 11:59 AM
by Steve
1 162
Client with...
OldSalt
04-07-2015 09:47 PM
04-13-2015 11:57 AM
by Steve
8 371
Getting rid of "mulched...
Mr. Mow
04-12-2015 04:21 PM
04-13-2015 11:26 AM
by biglee
3 192
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
04-13-2015 11:11 AM
by biglee
7 299
Billing methods
jcurr33
03-26-2015 01:33 PM
04-13-2015 11:07 AM
by biglee
15 800
Landscape Fabric
CurbAppeal1
04-10-2015 03:58 PM
04-13-2015 08:02 AM
by Chilehead
4 254
I lost a long term...
Sprinkler Buddy
09-04-2011 02:24 PM
04-12-2015 04:27 PM
by Mr. Mow
17 3,869
I'm Back With The Best...
aduttonater
02-21-2015 12:41 AM
04-10-2015 12:05 PM
by Just for Cuts
45 2,088
Snow removal contracts
CDLAWNCARE
03-31-2015 02:57 PM
04-10-2015 11:37 AM
by kslawn
6 450
Do you have medical...
Steve
09-10-2011 11:46 AM
04-10-2015 11:28 AM
by Steve
17 5,167
Shopping Centers
avetslawncare
04-07-2015 07:16 PM
04-10-2015 11:27 AM
by Steve
7 356
Leaf Vac's?
ABurlison
11-07-2007 10:18 PM
04-10-2015 06:12 AM
by RSE
14 5,660
Grass and Leaf vacuum
captain200
04-07-2015 07:05 PM
04-10-2015 06:02 AM
by RSE
4 316
Covering a landscape...
Dan Tanner
03-29-2015 09:01 AM
04-10-2015 06:00 AM
by Dan Tanner
19 914
I have a great idea!
biglee
04-05-2015 06:20 PM
04-09-2015 12:54 PM
by Steve
4 363
lawn care school
kevinburch48
04-09-2015 09:13 AM
04-09-2015 11:27 AM
by Steve
1 219
What do you suggest?
Growing Green
09-20-2011 09:56 AM
04-08-2015 03:09 PM
by Steve
8 3,092
Survey
Ducke
09-20-2011 07:27 PM
04-07-2015 11:33 PM
by SGL1
12 3,417
DOT Number
acrajchel
03-20-2015 05:56 PM
04-07-2015 10:55 PM
by SGL1
14 1,224
Avoiding Clients
CHEESE2009
09-08-2011 10:58 PM
04-07-2015 06:05 PM
by GLAN
24 6,375
Mass/New Hampshire...
jcurr33
04-06-2015 09:48 PM
04-07-2015 04:19 PM
by jcurr33
2 265
Ferris FW35 questions
Chilehead
03-10-2015 08:31 PM
04-07-2015 05:19 AM
by Chilehead
9 787
Dethatching attachments
jcurr33
03-29-2015 08:56 PM
04-06-2015 09:21 PM
by ExtremeLawncareServices
6 505
» Popular Tags
aerocore apartment complex auger bark billy goat brushcutter blades bush collections deliquentaccounts design edging employee problems equipment rental ferris flyers foreman free advertising grass growing a lawn care business hills hiring husqvarna john deere quik trac landscape landscape services landscaping training lawn lawn care lawn care business seo lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo lawn mowing marketing marketing secrets more customers business mr dave mulch new business past due per hour charge per hour service pricing profit on employee pto push versus ride running a business scripts secrets to landscaping sell the vision seo shell small engine repair square foot steep lawns sulky theft toro grand stand trailer tree trimmer rack truck new used landscape up sell employee web design website website design winterization won't return
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 06:01 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 06:01 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy