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Starting a new company, should I go LLC or Inc

Discussion in 'Introduce Yourself to the Community' started by mudhound72, Oct 28, 2014.

  1. mudhound72

    mudhound72 Junior Member
    Messages: 5

    Hi everyone :waving:

    I have been plowing for a guy for 8 years and this year I am steeping out on my own. I will be doing sub work for him this year and start picking up my own clients next year (he might be stepping down from it next year). In the past I done a bit of everything, schools, town roads, large commercial lots, small business, and driveways ect.

    The next step I am trying to figure out is do I start the business as a LLC or inc it. My biggest concern I have is I want to protect my family/house in the event of something major to happen, eg; I am plowing a road hit a slick spot and take out a bus load of lawyers. If I lose the business and everything with it fine, but I want to protect my family the best that I can. I have been told both ways is better but Inc a business is way more costly to set up.

    What is your opinion on what I should do.
  2. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883

    I'd bet 99.9% of everyone here who owns their business is a LLC.
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Guess I'm the .1%
  4. Antlerart06

    Antlerart06 PlowSite Veteran
    Messages: 3,437

    Your wrong your .5% Since Im other .5%
  5. xjoedirt55x

    xjoedirt55x Senior Member
    Messages: 104

    Wouldn't you each be .05 for a total of .1?

    But in all seriousness, what are the advantages of doing something other than an LLC?
  6. PrecisionS&I

    PrecisionS&I Member
    from Ohio
    Messages: 75

    Well you better make it .033333333333.

    I would only take advice on this subject from an attorney and your accountant. It is different for everyone. No business is the same and not everyone's financial status is the same.

    Leave the legal and financials to professionals and go push snow.
  7. SnoFarmer

    SnoFarmer PlowSite Fanatic
    from N,E. MN
    Messages: 9,883

    Last edited: Oct 29, 2014
  8. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I'm best to give an answer,because I stayed in a Holiday in once.
  9. theplowmeister

    theplowmeister 2000 Club Member
    from MA
    Messages: 2,617

    :laughing::laughing::laughing::laughing: so true
  10. theplowmeister

    theplowmeister 2000 Club Member
    from MA
    Messages: 2,617

    WE have a problem its now 0.333333
  11. mudhound72

    mudhound72 Junior Member
    Messages: 5

    Thanks for the info, now I just need things to slow down at wok some so I can get started at this :dizzy: I do think I am going LLC, inc does not look like it would benefit me with allot more BS to deal with.
  12. Herm Witte

    Herm Witte Senior Member
    Messages: 595

    Where does that leave me?
    I suggest the OP you ask his/her CPA and legal advisor that question.
  13. als06

    als06 Junior Member
    from 18013
    Messages: 9

    started my business 8 years ago as a sole proprietor and have the same CPA since day one. This too was my first question to her. No need to incorporate and pay much more in taxes she said. LLC wasn't recommended either. I'm doing 300-400k in annual sales and still sole prop. Some of you guys make me nervous always expecting the worse in people. Tomorrow I'll get a 2nd opinion from my attorrney.
  14. plowguy43

    plowguy43 PlowSite Fanatic
    Messages: 5,281

    I'm with you as a sole proprietor, but I just purchased more insurance (Umbrella) on top of my Commercial Auto & GL limits. Was pretty cheap for the limits given.
  15. snowplower1

    snowplower1 Senior Member
    Messages: 966

    I would recommend switching to an LLC although im no pro, my dad started out as a sole and then switched to an LLC and it has seemed better especially in the fact that if you ever have some crazy situation that your insurance wont cover, then everything is gone. LLC protects all your personal assets.
  16. CashinH&P

    CashinH&P Senior Member
    Messages: 448

    Im in the same boat.
  17. Plowtoy

    Plowtoy Senior Member
    Messages: 929

    I think its more about good insurance than it is LLC or INC. I've been doing this for many years as DBA, every year I ask my accountant and insurance agent if I need change to a LLC or INC and every year is the same answer...NOPE. I think it has to do more with the amount you gross than what you do. INSURE, INSURE, INSURE. Accidents happen...
  18. John_DeereGreen

    John_DeereGreen 2000 Club Member
    Messages: 2,910

    I don't understand why a lawyer wouldn't suggest at least an LLC for personal protection should something happen, but every situation is different.

    Myself, I sleep better knowing that my personal assets are protected should I or an employee have something happen.

    I've seen a couple companies set up 2 LLC's. One as the company name LLC, and one as company name leasing LLC. The leasing company owns everything, and rents or leases it to the service company. Double protection, at least to a layperson. I don't know what would come out of that in court though.
  19. plowguy43

    plowguy43 PlowSite Fanatic
    Messages: 5,281

    Because situations are different as are insurance policies. My policy will cover defense costs along with my liability to the claim. If my per occurrence limit is exceeded in the claim, my umbrella policy will come into play. For my type of work (I plow for 1 bank who assigns multiple vacant foreclosed properties that a few of which are on the market with a real estate agent) this setup should suffice and be enough to keep any personal assets safe. Your mileage may vary