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, 10:55 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, 11:08 PM
SNethercutt SNethercutt is offline
Senior Member
 
Join Date: Mar 2013
Posts: 202
Rep Power: 2
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, 11:49 PM
MBLC MBLC is offline
Member
 
Join Date: Mar 2013
Location: Chicago
Posts: 55
Rep Power: 2
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, 07:51 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 07:54 AM.
Reply With Quote
  #5  
Old 03-18-2013, 11:27 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, 02:58 PM
Steve's Avatar
Steve Steve is offline
Administrator
 
Join Date: May 2003
Posts: 36,688
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 12:34 PM
Going Legit element009 General Business Discussions 8 04-02-2012 04:12 PM
Going Legit LuckyClover Introduce Yourself 4 03-05-2012 03:45 PM
Lear corp. / IAC AMW Graphics Truck & Trailer Sign Design, silk screened apparel & uniform discussion 9 04-16-2007 09:03 PM
Go Legit Campaign Steve General Business Discussions 11 04-02-2006 09:11 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Repair or replace the...
lxarth
12-17-2014 05:07 PM
Today 12:02 PM
by SuperiorPower
11 344
Stander Vs. Zt
totalscape
12-20-2014 07:57 PM
Today 05:42 AM
by Billy Goat
6 155
Complete body therapy...
zermin
Yesterday 11:51 PM
Yesterday 11:51 PM
by zermin
0 30
Facebook
element009
03-23-2011 09:36 AM
Yesterday 04:33 PM
by stevef1201
38 9,930
Ideas on a large bid
Knaubone
Yesterday 11:57 AM
Yesterday 11:57 AM
by Knaubone
0 60
what do you "love" to...
calebmoss
07-06-2011 10:05 PM
Yesterday 12:52 AM
by rmccutchan
31 9,084
I'm BACK!
SuperiorPower
12-16-2014 11:08 PM
12-20-2014 11:33 PM
by SuperiorPower
7 280
These are the days on...
ExtremeLawncareServices
03-22-2014 10:12 AM
12-19-2014 09:45 PM
by ExtremeLawncareServices
189 16,809
Georgia Boys!
Chilehead
12-18-2014 10:23 PM
12-19-2014 09:36 PM
by Chilehead
2 139
Employee job training...
brookline
12-15-2014 08:15 PM
12-19-2014 07:48 PM
by SuperiorPower
9 387
Hello from Md
homey
12-17-2014 06:55 PM
12-19-2014 06:00 PM
by homey
5 226
Has Obamacare helped or...
Steve
12-18-2014 04:37 PM
12-19-2014 05:43 PM
by stevef1201
3 163
What Fertilizer to Use?
acrajchel
04-07-2014 02:56 PM
12-17-2014 01:11 PM
by Steve
23 3,038
Grass hopper mower
ExtremeLawncareServices
12-05-2013 09:51 AM
12-17-2014 09:40 AM
by SuperiorPower
34 6,192
Peco Bagger
AGPS
11-18-2014 02:20 PM
12-17-2014 09:13 AM
by SuperiorPower
15 1,403
New to Gopher Haul-from...
323k13l
12-12-2014 10:34 PM
12-15-2014 02:58 PM
by Steve
3 351
hi
creteland
12-12-2014 09:06 AM
12-15-2014 01:45 PM
by Steve
5 342
New addition to my small...
googus
12-12-2014 07:36 PM
12-15-2014 07:47 AM
by googus
4 418
Ferris IS700Z
rmccutchan
12-14-2014 01:10 AM
12-14-2014 11:41 PM
by rmccutchan
4 316
Charge what the market...
Billy Goat
12-09-2014 12:39 PM
12-14-2014 06:39 PM
by biglee
20 866
Hi from IL
steveinil
11-25-2014 02:07 PM
12-12-2014 07:18 AM
by steveinil
4 860
Utility Company Right of...
eastsidelandcare
12-11-2014 04:54 PM
12-11-2014 04:54 PM
by eastsidelandcare
0 329
leaf removal
Double J LLC
10-03-2014 05:24 PM
12-11-2014 04:50 PM
by eastsidelandcare
33 4,171
suggestions on full lawn...
Brian3137
12-10-2014 07:18 PM
12-11-2014 03:41 PM
by Steve
6 445
new to me box truck
jrayb39667
03-06-2014 11:20 PM
12-11-2014 09:43 AM
by Sprinkler Buddy
18 3,452
Hello from SW FL!!
5StarLawnscaping
12-05-2014 02:35 PM
12-10-2014 02:45 PM
by WesleySnips
7 689
Echo pb200 blower fuel...
googus
12-06-2014 09:03 PM
12-09-2014 06:35 PM
by Steve
3 543
Are you prepared for the...
Steve
12-02-2014 04:13 PM
12-09-2014 06:22 PM
by Steve
7 954
Email Address Name
Just Cuts
12-07-2014 09:49 PM
12-08-2014 03:15 PM
by Steve
3 486
Inspection form
stevef1201
12-07-2014 10:38 AM
12-08-2014 03:10 PM
by Steve
1 478
Truck, Trailer,...
hawthornelawncare
12-23-2011 01:01 AM
12-08-2014 12:37 PM
by jrs.landscaping
108 34,316
Back Pack Blower
Ian Lovejoy
11-09-2014 08:41 AM
12-07-2014 06:35 PM
by stevef1201
24 1,789
Innovation by mandate
bayoubandit
11-29-2014 01:33 PM
12-06-2014 03:27 PM
by SGL1
12 1,030
Trying something new,...
ExtremeLawncareServices
09-21-2014 10:07 PM
12-05-2014 11:06 AM
by Steve
9 2,319
Good help is hard to find
Hanks Lawn Care Services
11-19-2014 03:27 PM
12-04-2014 01:32 PM
by stevef1201
15 1,507
How many hours is too...
Just Cuts
12-04-2014 09:00 AM
12-04-2014 01:02 PM
by Just for Cuts
6 673
Does this sound like a...
googus
12-03-2014 07:47 AM
12-04-2014 12:37 PM
by Steve
5 745
New website
Chilehead
11-20-2014 04:39 PM
12-04-2014 12:27 PM
by Steve
14 1,281
New website
SGL1
12-02-2014 10:55 PM
12-03-2014 11:17 PM
by BLC7
19 913
Websites, how long...
Dan Tanner
03-09-2014 08:29 AM
12-03-2014 11:12 PM
by SGL1
21 3,308
I Want to buy old...
ExtremeLawncareServices
10-10-2014 11:04 PM
12-03-2014 10:36 PM
by ExtremeLawncareServices
8 1,924
GPS trackers for...
Billy Goat
12-02-2014 06:09 PM
12-03-2014 07:17 PM
by Steve
8 773
My site is on fronts page
tbtigers03
11-14-2014 05:58 PM
12-03-2014 06:31 PM
by SGL1
17 1,515
Hiring Subs over Temps
Billy Goat
12-02-2014 06:26 AM
12-03-2014 01:24 PM
by Steve
3 686
Thanksgiving cards
Steve
11-10-2008 11:57 AM
12-02-2014 11:11 PM
by SGL1
11 9,579
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
12-02-2014 02:17 PM
by jrs.landscaping
12 1,540
Pressure Washing...
WesleySnips
07-31-2014 07:13 PM
12-02-2014 08:47 AM
by SGL1
6 1,562
old contracts
bayoubandit
11-29-2014 11:10 AM
12-01-2014 11:20 AM
by Steve
3 755
Hi to you NOTHERNERS
stevef1201
11-11-2014 05:56 PM
12-01-2014 10:54 AM
by Steve
9 1,332
Lawn care truck
Steve
10-10-2009 03:40 AM
12-01-2014 10:45 AM
by Steve
32 15,248
» Popular Tags
4wd apartment bid apartment lawn care estimate applying bid bob villa bush care commercial decorating deliquentaccounts demonstration ditches edging employee problems ferris first truck four wheel drive gopherhaul grass hardscapes hills hiring how much to charge how to hydraulic installation introduction landscape services lawn lawn care lawn care busines plan lawn care business lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care seo lawn care website lawn care website seo managing a lawn care business mulch mulch price past due patio install per hour charge podcast profit on employee reo scag v-ride scripts shell snow snow plowing sprayer starting a business starting a lawn care business start up lawn care business steve sulky toro tractor auger trailer mate pro tree truck new used landscape turfgrass consulting up sell employee walk behind won't return wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 04:41 PM.


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

All times are GMT -5. The time now is 04:41 PM.

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