LLC's

Gary H. · Apr 16, 2014

I have a small mowing business. Only generate about $7500 gross receipts. What do you think of forming an LLC ? Good- bad- ugly ? Other ideas?

moresmoke · Apr 16, 2014

An LLC is only useful if you have employees. It can provide a little protection from their actions. If you are the proprietor and hired help, no matter what happens its your fault. No matter what a lawyer will just shotgun lawsuits at anyone connected and see what sticks.

farmall300u · Apr 16, 2014

Go for the LLC. It will separate your business liability from your personal assets.

Super-H-Mike · Apr 16, 2014

Get it ! And get really good insurance. You may be tempted to skimp on protection because you are a small company, BUT, that is the very reason you need it ! It is not even so much that you will cause a law suit, but you can be named in a suit that you may eventually be exonerated in, and the legal defense bill will sink you anyway. I am talking from experience here. I am a HUGE believer in good insurance coverage.

preacher man · Apr 16, 2014

An LLC will go a long way in protecting you from major law suits. In the worst case scenario, something happens that is your fault, if you have complied with all laws, have good liability insurance, and did your best to do business in a professional manner, your personal assets are protected in case of a lawsuit. I have had an LLC for several years and am in the trucking business operating under my own authority.

Ray · Apr 16, 2014

My tax people said an LLC won't offer much protection,it's just another loop hole a lawyer will have to jump through to get to your assets.
It's best to have a big liability policy.

Dave H (MI) · Apr 16, 2014

I would listen to Moresmoke, your first response. That is real world advice. The rest are just repeating what they have been told or read on the internet from my perspective. I am not a lawyer. I am a CPA and I work with a lot of LLC's of different sizes. My wife is a former court reporter and currently deputy civil clerk. If you want legal advice you should find a lawyer with nothing to gain financially from the advice. If you have an incident that is going to lead to a lawsuit, the plaintiff attorney will likely name you, the LLC, your unborn children, etc and then wait for your attorney to make a motion in court to exclude you. Depending on the crackpot behind the bench, and realizing that the best lawyers don't become judges because the pay sucks, you may or may not be excluded. BTDT and seen it many times. Having said that...I would still do the LLC. Cheap to start up, might actually help you, sounds more professional and, if you keep it to a single member, won't change your tax picture...still on Schedule C.

Dean · Apr 16, 2014

Bingo.

Dean

Pops1532 · Apr 16, 2014

An S Corp may be a better alternative than an LLC.
Talk to your lawyer, accountant and insurance agent.

John T · Apr 16, 2014

As an Attorney I have made some for clients, and they can shield you from personal liability to some degree, HOWEVER I advise them its still best to carry a huge amount of liability insurance, that's the best protection.

As I always advise, this IS NOT a question well suited for Billy Bob and Bubba lay persons on a tractor forum, liability and protection is quite complicated even for an experienced business attorney, my free professional advice must remain CONSULT A TRAINED EXPERIENCED PROFESSIONAL ATTORNEY IN YOUR AREA, there's just too much at stake and too much to risk to follow what your know it all brother in law has to say lol.

Best wishes

John T Attorney at Law

casenut1 · Apr 16, 2014

What do you mean, A lawyer with nothing to gain financially for advice . They all charge for any advice , and that is financial gain.

RodinNS · Apr 17, 2014

Get a legal opinion is the best advice... My opinion... for what it's worth and what you generate... an LLC is probably more headache than it's worth. There's no such thing as completely shielding yourself from liability. Best thing is to get a good CGL policy and behave in a manner that is reasonable and defensible... ie... NOT negligent.

Rod

caterpillar guy · Apr 17, 2014

As Moresmoke said. If you are the owner and operator if they can't satisfy the liability from the corporation then they will come after you.
I asked an attorney about incorporating once he said as long as you are the owner and operator it won't help much. Like a truck driver that owns the truck. After they get done with the company they will turn to the driver.
As John T. Said good insurance.

Dave H (MI) · Apr 17, 2014

That would be any lawyer who does not think he is going to develop this into a lifetime annuity. For example, my nephew is a fairly brilliant young lawyer who had his taxes done here for free the whole time he was in school and for the first several years in practice and now pays me a nominal amount to do it. Or some other similar friend, relative or acquaintance.

LLC's

Gary H.

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moresmoke

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farmall300u

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Super-H-Mike

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preacher man

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Ray

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Dave H (MI)

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Dean

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Pops1532

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John T

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casenut1

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RodinNS

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caterpillar guy

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Dave H (MI)

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