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To Inc. or not to?

Discussion in 'Business Fundamentals' started by platinumdetails, Jan 12, 2010.

  1. platinumdetails

    platinumdetails Junior Member
    from Maine
    Messages: 11

    Advantages to incorporating my snow removal business?? iam leaving my fathers business to go out on my own. I know how to do the work and how to price the work but how the hell do i run a business?? Pulling my hair out:confused::confused:
     
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    As they say,check with your lawyer first. I went Inc. to put a bigger buffer between my company and myself.
     
  3. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    If you like everything you've worked hard for then you should set of some sort of business entity.... inc, s corp, llc, ect.... talk with a lawyer to have them set it up... best $ I've ever spent
     
  4. fireboy6413

    fireboy6413 Senior Member
    Messages: 396

    talk with your lawyer in person, dont do it online, each entity has different tax rates, such as my last company I did INC so I was paying through the roof in taxes, llc still has some great legal coverage of your personal assets and is lower in tax rates
     
  5. fireboy6413

    fireboy6413 Senior Member
    Messages: 396

    also make sure you ask him which one would best suit you, I when I incorporated my last company, my lawyer never told me about the taxes
     
  6. AGMI

    AGMI Member
    from NE Mass
    Messages: 36

    I just did it after 7 years. Would've cost me $1000 7 years ago, cost me $5000 today due to reregistering/titling/plates/fees (lawyers and CPA)/time. If I started another company tomorrow, the first thing I would do is create an S-corp. JMO
     
  7. EGLC

    EGLC PlowSite.com Addict
    Messages: 1,733

    I did LLC cost me under $1000 to setup spring 2009
     
  8. plowinginma

    plowinginma Senior Member
    from MA
    Messages: 326

    I am not stating anything thats not obvious to most.. But pushing the pencil is the most important part of business.. There are many that do great work but don't know how to run a company.. There are probably many of us here.. myself included that have payed more than 4 years tuition to Harvard by trial and error..Best of luck!!
     
  9. BigLou80

    BigLou80 Senior Member
    Messages: 558

    Like I always say. no matter how you get it education is expensive
     
  10. burlingtonplow

    burlingtonplow Member
    Messages: 57

    Limited liability corporation and S corporations pay the least amount of taxes for most businesses. You don't need a lawyer to start this but usually do if it involves more than yourself.You are better off talking to the accountant first and they will refer you to a lawyer to file the papers if necessary.
     
  11. jomama45

    jomama45 PlowSite.com Addict
    Messages: 1,172

    All very good recomendations here IMO. I did the LLC after 7 or so years of business & wish I had done it day one. It took a personal liability situation to finally open my eyes & get me off my butt. I can't think of one reason, other than a few hundred initial dollars (at least in my case in WI), not to create an LLC right off the bat. I would still talk to a tax advisor and/or lawyer before deciding what kind of entity is best suited for your business.

    A few more points:

    - Filing taxes as an LLC is no different than filing personally in my experience. Although I do very little of my accounting, I opt to let my accountant do alnmost everything.
    - The 3 most important partners in your business are an EXCELENT accountant, lawyer, & insurance agent/broker. If they're good, they can give you advise on every business situation you will ever run into, as they've been down those roads before.
    - Waiting to form an LLC until later opens yourself up to unneecessary excess liability, and you will have to replace all literture, biz. cards, anything pre-printed, etc....... with the additional LLC when you do go ahead with it. This is why I procrastinated so long to form an LLC, & would just do it right off the bat if I had the chance again.
     
  12. plowguy43

    plowguy43 PlowSite Fanatic
    Messages: 5,269

    Great info here- What do you guys think of sites like Legalzoom.com? The reason I ask is I'm looking to do this myself like the original poster. I've been paying taxes on the income I receive from plowing (I plow for a bank, no way around it lol) and have been looking at sole proprietor/LLC. I'd rather LLC for the liability factor and ability to get credit based off of company history and not mine. Also, I'm hoping to be able to write off expenses which is obviously something I cannot do now.

    Any info about all of this? I know each situation is different and I need to sit down with an accountant/lawyer but any advance knowledge is appreciated.
     
  13. framer1901

    framer1901 Senior Member
    Messages: 813

    Sole properiter, llc or s corp - all can write off expenses.

    Everyones situation is different and you need to talk with a bean counter 1st and a small bit of advise from a lawyer.

    I personally wouldn't do any internet legal papers with something like this, if you're adding a second or third company and fully understand what you are doing, different story.

    What I understand when we choose scorp over llc was differing ways to handle money and expecting to grow into a large company.

    Your future goals should be part of this decision.

    Also, the rumor that a S corp insulates you personally from liability is false. It helps but is certainly no protective shield.