[POS POLARIS]

Thinking of starting my own LLC for a few reasons.

This year I've been busy, very busy fixing rangers tractors, more rangers ect. Usually I get a few odd jobs, but it seems that more and more people know that I can keep rangers running, and with the rancher population here, ranger repair is in high demand. Especially with the nearest dealer is at least 50 miles away and usually 3 weeks out from getting a machine in.

That being said, I'm not thinking of putting my sign out, but I'm thinking with all the business I'm doing, I'm going to get 1090'd anyway, so I might start an LLC to protect my other assets against any law suits that could (though not likely) happen through any work I've done. Another plus might be that it seems through talking with some tire outlets that I can get tire's wholesaled to me if I have a storefront and business name, which I would have if I formed and LLC. It would mean I'd have to get a tire machine, but I kinda need one anyway..

Besides the extra tax paperwork, how else will forming this business effect me?

Suggestions, advice?

 

[Joel Houston]

I have one for my construction business, it's great. Consider it a way of creating a shield between business and personal. If something happens and a person sue you they are only capable of going after yadayada .inc . Not you, a paid employee.

 

[alloutdoors]

Adam,
Very interesting you posted this today, because I was mentioning to a friend today if my machine ever needed serious repair, I would likely reach out to you and see if that would be an option. I agree with the comments above, you would be advised to get a layer of distance between you and the individual. I’m sure you have been looking at articles online and passing another one to view The Many Benefits of Forming an LLC

 

[stainlessman]

My business is a LLC. But the law states you must inform and make customers and venders aware that you are an LLC. But I ran my business for years with no sign by the road and still do. The planning board here is made up of power hungery 'busy bodies' who are there to know your every move and have the power to 'control'...and I was told should I want to hang a sign..THEY would need to do a site walk and approve it. So I never did.(there my gripe for the day) The LLC needs to be filed yearly with the state. A maintaince fee of $200. here my lawyer charges.(rip off). But of course its all tax deductible expence. Depending on how indepth you want to get. You can rent your garage to your LLC and get a paycheck from the LLC to you. Completely legal. I think I paid $450. to the lawyer to get set up and filing fee. Think of the LLC as a completely separate business from you. I had considered Legal Zoom or other online LLC sites. I recommend face to face with a lawyer to fully understand it.

 

[JJaxon]

Likely a good idea, to protect ones personal assets, if even on the small scale of business.

I'm curious, would you get creative with the business name, signage, or go with your Avatar name and pic? :witless:

But seriously, in business ones reputation is derived by how they are identified by their customer base. With that I have always found your posts here to be informative, factual, and very useful, sometimes entertaining, and I place your posts in high regard, with out doubt. I've sometimes wondered what POS stood for, and realizing we all have a humorous side to life, I figured it wasn't your initials. Having a yard sign with POS Polaris would draw some attention by people who don't know what a Polaris is, and that's a good thing, as long as Polaris doesn't see any harm in it.

Bottom line is if you work on other peoples stuff, protect yourself 1st. If theres a guy that can make a living fixing these machines, you'd be him. Another good reason to buy more tools too.

 

[pede58]

Well I happen to be a sole proprietor, second generation contractor started by my dad in 1946, I've owned it for 25years, back then their was no such thing as an LLC. Adam, aren't you a rancher/farmer now? that should make you a business and come with all the benefits and deductions; tools, buildings, even your rangers plus give you your ID #. I know years ago when income was plentiful my accountant always wanted me to incorporate, today not so much as corporate taxes are paid if you make money or not. I had this discussion with my lawyer when I bought my dad out and according to him product liability is near impossible to prove. The other thing to consider here is insurance, this won't be covered under a farm blanket but will need to be specific and that my friend ain't cheep. I'd say go ahead with what you are doing now, pay attention to any single account receivable over $600 in one year, if it's for someone who can deduct it then you'll get the dreaded 1099 and have to claim it, remember deductions can be played with, income should never be.

 

[POS POLARIS]

Thanks for the replies guys.

Protecting my assets would be my main goal if I formed an LLC.

I believe in the state of MT it's a $150 one time only fee to do it. Never thought about having to "rent" my shop from our corporation and paying myself a wage. That would require a good amount of cash flow to do. With the amount of work I have here for myself with ranching, and keeping our own fleet of aging vehicles running, It wouldn't leave alot of time left to turn wrenches. Although in cases like last week, I worked on a tractor a couple times, and then did some work on a ranger for a neighbor, and made about $1200 in 3 days time. So I know if times get tough for the ranch, I can always put my sign out and start doing more repair work.

The tool side of things I'm very well setup. My time as a diesel mechanic allowed me the funds to equip myself with much of the tools I have now.

John, Don't think I'd be using my Username for my business, but that would be a bit entertaining! My username was formed from my first experience with polaris, and some of the experiences still seem to hold true to this day. If I had it to do again, I would not choose that username. If I do form this LLC, more than likely, it'll be changed.

Was thinking about a couple shop names, "******* Repair" "Ranger Repair"?

Talk at you all later.

 

[POS POLARIS]

Well I happen to be a sole proprietor, second generation contractor started by my dad in 1946, I've owned it for 25years, back then their was no such thing as an LLC. Adam, aren't you a rancher/farmer now? that should make you a business and come with all the benefits and deductions; tools, buildings, even your rangers plus give you your ID #. I know years ago when income was plentiful my accountant always wanted me to incorporate, today not so much as corporate taxes are paid if you make money or not. I had this discussion with my lawyer when I bought my dad out and according to him product liability is near impossible to prove. The other thing to consider here is insurance, this won't be covered under a farm blanket but will need to be specific and that my friend ain't cheep. I'd say go ahead with what you are doing now, pay attention to any single account receivable over $600 in one year, if it's for someone who can deduct it then you'll get the dreaded 1099 and have to claim it, remember deductions can be played with, income should never be.

Yes, you are correct with your assessment, but that's exactly the reason I want seperation between the ranch and it's assets and my LLC. If a wheel comes off someone's ranger because I forgot to tighten the lug nuts and kills someone, I don't want them to be able to come after my land and assets of the corperation. Just what's in the LLC, which would be almost nothing. I wouldn't even put my tools in my LLC.

 

[alloutdoors]

Was thinking about a couple shop names, "******* Repair" "Ranger Repair"? Talk at you all later.

I see an advantage to each, the "******* Repair" will greatly open up options for your LLC, e.g., marriage counselor, etc. LOL

I do like the Ranger Repair, but it is very specific "Rangers".

 

[Jungleman]

I have one word..............Work for CASH only.........Ok, four words. Scr*w the LLC, you don't need that kind of PITA . JMO.........ositive:

 

[pede58]

Something you may find interesting;


[h=2]Limited Personal Liability[/h] Like shareholders of a corporation, all LLC owners are protected from personal liability for business debts and claims. This means that if the business itself can't pay a creditor -- such as a supplier, a lender, or a landlord -- the creditor cannot legally come after an LLC member's house, car, or other personal possessions. Because only LLC assets are used to pay off business debts, LLC owners stand to lose only the money that they've invested in the LLC. This feature is often called "limited liability."
[h=3]Exceptions to Limited Liability[/h] While LLC owners enjoy limited personal liability for many of their business transactions, this protection is not absolute. This drawback is not unique to LLCs, however -- the same exceptions apply to corporations. An LLC owner can be held personally liable if he or she:

• personally and directly injures someone
• personally guarantees a bank loan or a business debt on which the LLC defaults
• fails to deposit taxes withheld from employees' wages
• intentionally does something fraudulent, illegal, or reckless that causes harm to the company or to someone else, or
• treats the LLC as an extension of his or her personal affairs, rather than as a separate legal entity.

 

[POS POLARIS]

Adam,
Very interesting you posted this today, because I was mentioning to a friend today if my machine ever needed serious repair, I would likely reach out to you and see if that would be an option.

Hey, never say never, but I'd say it'd most likely cost your more to haul your machine here than it would for me to fix it.! Lots of good mechanics out there. Only reason I'm up to date on rangers is because I own/operate/and repair them. Rangers such as the 500, 570 or 900 I'm really not very familiar with when it comes to the engine/electrical side of things. When you own them and that's all you work on, it give one a new perspective on the whole machine. I'm sure someday I'll have a 570 or 900, but as of now, I'm really thinking about completely rebuilding my 800 this winter. I think I could go through my suspension, wheel bearings, and the top end of the engine for less than $1500. The transmission I just rebuilt and don't foresee any more problems with it. Pretty cheap to do when you figure a new 900 with cab/heat cost $20,000+ . Don't think I can make that pencil out.

 

[TEET_XP900]

Get ready to pay out the ass in self employment taxes too. No benefit of living the american dream. $.40 on every dollar you make goes to uncle sam after all taxes are paid. Still trying to figure out the benefit of making more money when all I do is pay more taxes. No wonder everybody hates the government, we get to watch them argue and disagree on every topic and waste away our hard earned money every day... And you drive through the poverty stricken areas during the day and nobody seems to be working, just living the easy life as all us hard working honest people support their asses...

 

[Jungleman]

$omebody has to pay for all the illegals pouring into the US as the government can't be expected to bring them in by the tens of thousands with no money........................

 

[clayton74]

You might consider a "S" Corp as well. My financial adviser recommended the S Corp over a LLC back when I formed my business corp. Can't remember all the reasons. Something about better for your taxes / less taxes.