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.
Thinking of starting an LLC suggestions?
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?
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?
1 - 2 of 15 Posts
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:
[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.
1 - 2 of 15 Posts
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