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: 4
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: 4
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: 5
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: 38,008
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
Z246 Deck change question
JohnsLawnCare
Yesterday 01:47 PM
Yesterday 06:38 PM
by Steve
1 28
DIY Sprayer
acrajchel
Yesterday 09:13 AM
Yesterday 06:36 PM
by Steve
1 31
Hello Everyone
JohnsLawnCare
06-22-2016 11:14 AM
Yesterday 06:20 PM
by Steve
15 550
How much to charge for...
jymie
03-31-2013 05:59 PM
Yesterday 06:18 PM
by Steve
23 5,947
Hi from Long Island NY
Lori22
07-18-2016 02:01 PM
Yesterday 06:11 PM
by Steve
10 201
Hi everyone!
greenwavemedia
Yesterday 03:22 PM
Yesterday 03:22 PM
by greenwavemedia
0 19
New Site Hows it look
Infinitelawn
03-16-2015 10:32 AM
Yesterday 03:06 PM
by greenwavemedia
5 10,420
Needing a website built
burtle
06-17-2015 09:02 AM
Yesterday 02:58 PM
by greenwavemedia
15 18,306
Looking for new host
Just for Cuts
11-26-2015 06:58 AM
Yesterday 02:49 PM
by greenwavemedia
9 1,468
New Business Owner
danesdanglas87
07-20-2016 12:31 PM
07-21-2016 05:04 PM
by Steve
2 102
Hi! I'm Tony from Tampa
Lawnline
07-12-2016 06:47 PM
07-19-2016 04:45 PM
by Steve
5 624
Question about...
Bradcook21
07-18-2016 05:22 PM
07-19-2016 04:38 PM
by Steve
2 119
Hello from Watertown New...
lawnmanrick81
07-19-2016 03:57 PM
07-19-2016 04:11 PM
by Steve
1 67
Gutter Cleaning Tool
DanielThomas
07-18-2016 08:23 AM
07-18-2016 04:36 PM
by Steve
1 95
Starting on a lawn care...
Coco3465
07-16-2016 11:26 AM
07-17-2016 09:20 AM
by Steve
1 123
Aspiring Company Owner
TJ136
07-12-2016 05:12 AM
07-15-2016 02:52 PM
by SC93
6 222
Hi Everyone
JavelinaLawn
07-10-2016 07:29 PM
07-13-2016 02:01 PM
by Chilehead
5 758
Review of our lawn care...
Lawnline
07-12-2016 06:40 PM
07-12-2016 06:40 PM
by Lawnline
0 396
Custom Canopies
JohnsLawnCare
07-12-2016 08:38 AM
07-12-2016 04:14 PM
by Steve
1 269
Spot checked by...
Just for Cuts
06-28-2016 02:34 PM
07-11-2016 03:53 PM
by Steve
4 289
John Deere JS40 issues
Mr. Mow
07-06-2016 01:28 PM
07-11-2016 03:52 PM
by Steve
3 214
Start My Own Business?
mowandblow1980
01-12-2016 07:43 PM
07-11-2016 11:18 AM
by DanielThomas
15 1,765
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
07-11-2016 09:11 AM
by Chilehead
9 3,301
Firefighter gone Lawn...
Firehouselawn@hotmail.com
03-10-2016 04:50 PM
07-07-2016 05:07 PM
by Steve
11 10,545
I need some business...
Firehouselawn@hotmail.com
07-06-2016 05:42 AM
07-07-2016 05:00 PM
by Steve
4 257
Business Overload
Chilehead
05-06-2016 09:27 PM
07-07-2016 04:53 PM
by Steve
24 1,267
Chemical Applications
acrajchel
06-24-2016 06:44 PM
07-05-2016 12:38 PM
by Chilehead
6 373
Is it too late?
Cpadgett
05-28-2016 09:10 AM
07-05-2016 11:54 AM
by Steve
14 875
3 Applications or 5...
stansg1fresh
02-18-2013 12:02 PM
07-04-2016 09:19 AM
by LawnPerfection
9 1,705
Best Push Mower You Have...
markty
05-14-2016 03:46 PM
07-02-2016 03:41 AM
by markty
27 1,935
Great Arborist Ladder
SGL1
06-04-2016 09:56 AM
06-28-2016 08:04 PM
by mowandblow1980
11 694
Newbie
Jhoell
06-25-2016 03:28 AM
06-28-2016 02:11 PM
by Chilehead
2 270
Say Hello !!!
Steve
03-19-2007 11:18 AM
06-28-2016 11:02 AM
by Brownieboy
1,253 440,295
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 02:34 AM.


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

All times are GMT -5. The time now is 02:34 AM.

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