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S Corp or LLC

Discussion in 'Business Fundamentals' started by mike33, Jan 9, 2007.

  1. mike33

    mike33 Senior Member
    Messages: 335

    Im check in to one or another, what is the difference between the 2 pro or con. Im in the landscaping and plowing business. Im getting pretty comforable in life business is payed off and building new home. I dont care to loose anything. Which one would work best for me.
  2. Proscapez LLC

    Proscapez LLC Senior Member
    Messages: 293

    My Attorney told the only way to go is LLC, and he did most of the work. N/C

    The only issue I have Is credit companys filling my mailbox, trying to get me to open accounts with them.
  3. Chris-R

    Chris-R Senior Member
    Messages: 321


    I take it that your goal is to not lose your house and other assets if you are sued. Therefore, go see an attorney in your area who handles business matters. Attorneys are like doctors. We do only certain types of law. For example, a personal injury attorney probably won't know a whole lot about what type of business organization you should have.
    Generally speaking, if I assume that you are a one man shop (owner) and don't have a bunch of partners, the LLC is probably the way to go. From a tax standpoint, some accountants still like the S corp. but I think they just aren't used to the LLC setup since it is fairly new to the business organization world. I was an accountant before going to law school and becoming an attorney so I know a bit about taxes, accounting, etc. The beauty of the LLC is lack of paperwork. On the other hand, the S corp and C corp require lots of yearly record keeping like corporate resolutions, annual meetings, minutes of meetings, blah, blah. If you don't keep perfect records, then you may find yourself losing your house because a smart lawyer was able to "pierce the corporate veil" thus removing corporate protection! With the LLC, you don't have those worries.
    Besides the LLC, your business lawyer may have some other ways to protect your house and assets like a Homestead if it is applicable in Maryland. For example, in Massachusetts, a Homestead will protect your house up to $ 500,000 in equity. I make sure that all of my Massachusetts business clients have Homestead protection for their homes. Lastly, since you are in Maryland, laws may be different than here in Massachusetts. Therefore, make sure to see a competent attorney in your area and consult with him. I'm not selling anything so I think the moderator will allow me to put up my web site. Take a look at it and you will see that I do some business type work. This is what you want to look for in an attorney in your area. Check his web site and make sure he lists business organization matters or go elsewhere. By the way, I plow snow for fun. Been doing it for 29 years now :) www.ryanlawoffice.com