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Starting a lawn care business. How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.

Partnership or solo


Starting a lawn care business.

How to start a lawn mowing business, lawn care business, or landscaping business. If you are starting a lawn care business, ask your questions here.
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  #1  
Old 10-22-2012, 11:33 AM
daddy03w daddy03w is offline
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Default Partnership or solo

Hello my name is Shawn. I have been trying to start my mowing business for a few years now and was finally able to get my step dad to get a loan for me. when we talked about it we were doing a partnership but im the one doing all the work, only because my step dad is in maintenance for some apartment complexes. do you all think since i am doing all thus on my own anyway should i break our "partnership" of the business and do it on my own
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Old 10-22-2012, 01:58 PM
Southern Greens Southern Greens is offline
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For tax and personal liability reasons, it would be best to set up some kind of organization. A partnership is better than nothing, but an Limited Liability Company (LLC) would be better. With this form of organization you can choose to be taxed as a partnership or as corporation.

To set up an LLC, you can go to the Secretary of State's website and do everything yourself. This a little cheaper, but more time consuming. If you want to save time, you can go to www.mycorporation.com. They do all the filing for you.
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Old 10-22-2012, 03:25 PM
Oxfordlawn Oxfordlawn is offline
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Partners are for one thing and one thing only....screwing

Take the loan money with payback w/ interest terms.

Especially starting as business with a family member...not saying it never works but tensions and bad holiday moments could definitely be in the near future
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Old 10-23-2012, 10:04 AM
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Welcome to our forum.

I think you would be better off doing it on your own. Save up a couple of dollars and buy some used equipment to get your feet wet with this new business. See what you think of it and if you like it. Then you can scale it up as you need to.

Any time you get anyone else involved as a partner, it always gets messy and ugly and you don't need that.

Keep us posted on what you decide to do.
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Old 10-23-2012, 03:43 PM
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Hi


I was thinking if you are just doing the work do it on your own. I use to have a partnership and all my partner did was screwed every thing up. So I would recommend do it on your own. Thanks!


Travis
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Old 10-25-2012, 07:23 AM
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Pay back 100% of the money yourself. Most partnership's start out like your's of some sort and end like your's. Seek out advice from an accountant about your tax's.
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Old 10-25-2012, 11:55 AM
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I would talk to your step-dad and share your thoughts with him. I'm sure you both can come to some kind of agreement that works for you both. If not, dissolve the business and start over on your own before it gets to big and you can't afford to buy him out. Money makes even family do some stupid things.
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Old 10-28-2012, 03:39 PM
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I have been in a long debate about what i am doing next year but my wife and I have discussed and are agreed that i am gonna do my own thing next year and basically tell my step dad that he can have the equipment and do what he wants with it, he will probably sell it to pay part of the line of credit he got.

my mom and step dad got a line of credit to help me get started but we talked about a partnership since i would be doing all the work and he was financing the whole thing to get started. but since we have started we have lost about 10k in some mulch jobs and about another 6k in mowing contracts because i had 3 potential clients that required the mulch jobs before i could get the mowing for the season. My step dad wouldn't give me the upfront money i needed to buy the topsoil and mulch for some decent size jobs.

So i have decided to start on my own with income tax money next year and my wife is on board with me for whatever i need to do.
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Old 10-29-2012, 10:35 AM
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Quote:
but since we have started we have lost about 10k in some mulch jobs and about another 6k in mowing contracts because i had 3 potential clients that required the mulch jobs before i could get the mowing for the season. My step dad wouldn't give me the upfront money i needed to buy the topsoil and mulch for some decent size jobs.

So i have decided to start on my own with income tax money next year and my wife is on board with me for whatever i need to do.
When such situations happen, could you either try and get the customer to pay upfront for materials or simply look to take on smaller jobs right now?
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Old 10-30-2012, 12:07 AM
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Steve brings a very valid point and very reasonable. In most cases I expect the customer to pay for materials in advance and they have never questioned it.

Existing customers, improved lines of credit with vendors and more cash flow make it easier to manage however it is pretty standard practice for me to charge 50 to 60% of total project up front with a signed agreement which will typically cover all material cost and part of labor.

There are some very good comments here about legality and an single member LLC offers great opportunity for a business just starting out. Partnership even if set up well are difficult and time consuming to manage and operate.

I would have to agree with sprinkler buddy about discussing this with your step dad, especially since it sounds like he has an interest in yours and his daughters success
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