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What type of business are you?

Discussion in 'Business Fundamentals' started by R0LLM0DL, Mar 6, 2010.

  1. R0LLM0DL

    R0LLM0DL Junior Member
    Messages: 16

    Im turning the wheels on starting my own plow business...

    just wondering how you all went about it...

    Are you an LLC? a Corp?

    What were you first steps... Did u go to a bank to open your LLC...anyone tried Legal Zoom?

    I will remain a 1 or 2 truck operation. Nothing crazy with bull dozers etc.

    Any help?
  2. deicepro

    deicepro PlowSite.com Addict
    Messages: 1,124

    I'm an LLC, it was cheaper and perpetual
    The bank needs a copy of the paperwork from your state in order to open a business acct
  3. R0LLM0DL

    R0LLM0DL Junior Member
    Messages: 16

    The bank doesnt have this paperwork already ( yes i will call to verify ) ??

    Any other things i should be aware of ?

    Any perks to being an LLC ?
  4. ff610

    ff610 Senior Member
    Messages: 320

    LLC here. Easiest way is to have an attorney draft of your articles of incorporation etc which is a standard form in most cases, and file with the state. I spent less than $500 including filing fee's. Online places would probably work if you have experience as to exactly what you need. Either way it is a MUST in your business to protect yourself! Good Luck.
  5. AiRhed

    AiRhed Senior Member
    Messages: 401

    I"m a sole proprietorship under an Assumed Name/DBA. But I am changing to LLC. It was simply faster for me to start as a sole proprietorship. But an LLC gives your personal property and your family much more protection. In my experience, an LLC is what I would suggest.
  6. tuney443

    tuney443 PlowSite.com Addict
    Messages: 1,847

    Sole proprietorship for the first 5 years,built up equity,more iron,more clients,my lawyer thought it best to protect me,the person,so he created a Subchapter S corporation for me.It's worked out fine these last 31 years except it burns my britches I have to contribute to your NYC MTA bailout program with my payroll taxes that is based on me the President paying me the person.{No offense,not directed at you,lol] Banks don't do this--get some more info here if you like,but definitely go to a legal eagle before you do something you'll regret later.
  7. deicepro

    deicepro PlowSite.com Addict
    Messages: 1,124

    Your bank might be different, but I could not open a "business acct" without the form that was filed with the state.
    I did my LLC online, it cost me $170
    I am pretty sure a corp is a bit more
    Once the LLC is filed, youre done, a corp must be renewed every year or you get fined
    I believe you have to file corp taxes by mar 15, I roll my LLC in with my personal tax return
    If I think of more I will get back to you
  8. R0LLM0DL

    R0LLM0DL Junior Member
    Messages: 16

    thanks for the responses.
  9. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475


    LLC's and and S-Corporations are similar but different. Don't even consider a C-corp, they're a pain for REALLY BIG companies. The main difference is the tax structure. An LLC applies what is called "pass-through income" which means any profit or loss "passes through" to your personal return, like deicepro stated. It actually passes through proportionally to any "Member," based on your percentage. If you are a one member LLC, you'll do a lot less tax work at the end of the year than if there are two or more members. You can be a one member LLC, no prob. LLC's have members, Corporations have owners and stockholders. Corporations must make a separate return and they aren't too easy! Also, as an LLC, you can choose how you are taxed. You can be taxed as a sole proprietorship, LLC, S-Corp or C-corp, though you'd have very different reasons for each. Some states ( I dont know about New York) actually charge a tax on LLC's. Based on some figure (gross or net or the like) it is essentially the governement needing a few more dimes, so from you it comes.

    You dont incorporate an LLC, you organize it. Drafting Articles of Organization for your LLC isn't very hard and you could easily do it on your own (assuming your a smartish guy). Articles of Incorporation are more tricky and are best left to a lawyer.

    You can do it on your own. Looks like it will cost you $250 in filing fees. You would pay these and the cost of a legal service if someone did it for you, probably at least 500 bucks it would cost you.

    Once you have your business entity all established, then go to the bank and worry about accounts. Dont put the cart before the horse.


    Spread your wings and do it!
  10. ff610

    ff610 Senior Member
    Messages: 320

    Yeah my bad... Articles of Organization not Articles of Incorporation. I wrote the wrong info. This is great advise! You can't go wrong with a LLC. Like I said with fee's and my attorney my last LLC cost 500 buck. I just didn't have the time to deal with it, but I'm sure if your smart enough to even consider it, you'd be able to handle it. Good luck!