Incorporating and LLC's, did you?, didn't you? Why or why not?

[jcooper]

I have a boat load of competition in my area, but I don't see many of them incorporated. Well, at least the inc. or llc isn't in their name if they are.

Just wondering why this(getting incorporated) wouldn't be a good idea?

Other than liability protection, the other main benefit(seems to me) would be a pretty big tax savings.

Why don't more cleaning business get incorporated? Did you? Any advice? LLC or Inc.? How has it worked out? Any advice?

My wife takes all my money, minus well get put her on the payroll.

 

[ruff]

My company is an LLC.
As far as the actual legal protection that it provides, that's a long debate. And I am not sure that even lawyers will give you an absolute answer or agree.

However, it makes my wife sleep better at night. I don't think it provides any Tax benefit and in CA it actually adds about $800.00 yearly fee. My insurance company likes it, however, so far they have not shown their appreciation in any visible monetary way .

 

[Ron K]

I was told LLC's don't protect you from anything Insurance does. If you were malicious nothing will protect you and if it was an accident that's what insurance is for.
What is the "Limit" to your liability in an LLC?????

 

[Dan]

For the majority of us it's worthless. Cost more, state sticking its nose up your ass even further than it already is. The best is the fact that they don't let you unincorporate if they feel you owe them a penny, then they continue to stick it to you every single year after....fees penalties interest.... Yea fock that.... Been there, done that and the pricks are still after nothing they will ever get.

 

[Dan]

Forgot to mention, in my case it was there error... Sounds easy right? Except you have to prove it to them so after you do they can search for more.

 

[Mark Saiger]

LLC operating as an S- corps. Can take dividend distributions easier and it just seemed to fit our company format at the time.

Mark Saiger
Saigers's Steam Clean, LLC

 

[ruff]

....fees penalties interest.... Yea fock that.... Been there, done that and the pricks are still after nothing they will ever get.

Yea, that pretty much sums it up.
And is not even limited to the subject matter

 

[Shane Deubell]

Not sure of tax advantages of one over another for most of us, think its more of an accounting issue of how you pay yourself. I know as an S-corp i receive a check as an employee with normal payroll taxes taken out.

The legal part is only good if you have a board of directors and have meetings with notes taken. End of the day it can be your brother larry but you should have quarterly meetings and notes taken by a "secretary". Can be your wife,girlfriend, daughter...

Practically speaking its not a bad idea to put together a group of family/friends {directors} and have them ask you questions about your business couple times a year. Each one focusing on a different subject, sometimes we have tunnel vision and need to be challenged on our ideas.

** Best case is independent directors who are experts in each subject***

 

[ruff]

Practically speaking its not a bad idea to put together a group of family/friends {directors} and have them ask you questions about your business couple times a year. Each one focusing on a different subject, sometimes we have tunnel vision and need to be challenged on our ideas.

** Best case is independent directors who are experts in each subject***

That is excellent advise.

 

[handdi]

The reason u do a s corp.
easy answer saves u a ton on self employment taxes.
in return could be bad down the road for your ss benefits if there is goin to be such in few years.
as far as liab all that is bs.
when ya get sued they go after everybody and everything no matter how your bus is set up.

 

[Dmreed4311]

Well I'am an S corp and it has protected me from a current slip and fall lawsuit, they are suing my company but can not come after me. Thank god for insurance.

 

[Shane Deubell]

Well I'am an S corp and it has protected me from a current slip and fall lawsuit, they are suing my company but can not come after me. Thank god for insurance.

90% of the time personal injury lawyers just want to go after your insurance for a quick/easy settlement, i agree the inc. provides us with that first line of defense.

My point was if anything serious ever happens and a really good lawyer becomes involved, they can poke holes in an inc. by showing most of us don't actually operate as one technically. Personally i would not own a business without creating an inc/llc or partnership structure but really want to talk to professionals on pro/con of each.