I've just recently decided to start up a company. My question to u guys is my buddy and i both have all our climbingng gear and i have a pick up, but what's my next step. I see alot of guys with great advice im just hoping you guys would pass some knowledge on. LLC or small bis? What gov programs help, ect. Thank you very much for your time
whats my first step...
- Thread starter azrival
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OLD OAK
TREE KILLER
Business plan. LLC or corp, one or the other or you could lose everything you own if something goes wrong, And it will sooner or later hopefully not bad. Lawyer, Accountant, Start up money, INSURANCE, A Lot of equipment. I don't know how you will manage with just a pick up unless you leave everything you cut. Most people we deal with want nothing left and the yard cleaner then when we arrived. I think the Business plan needs to be looked into first.
I'm in Arizona. We have bulk trash and I can fit a good deal in a trailer. I work for another company and im starting this after work and weekends. The owner of the company I work for is letting me rent his stump grinder and use trailers when he's not using them. We also have several tree dump companies here. What's better LLC or corp, or reg small bis? What agency's help small bis owners how do I outline a bis plan. Any and all help is appreciated
ShneaSIG
ArboristSite Operative
Each state has their own statutes with regard to the formation of corporations and limited liability companies, as well as their own body of case law which may make one type of entity preferable to the other for a chosen venue. You'll need to spend a half hour with an attorney who practices business association/corporate law to know for sure which type will be best for your forum.
For my jurisdictions (Illinois and Missouri), I like LLCs for small business operations.
Generally speaking, LLCs are often better for small operations. They tend to offer a corporate veil to protect you from personal liability in most instances, but tend to not require many of the things a corporation will require, which can be things like a minimum number of directors, officers, stock certificates, bylaws, regular meeting minutes, proper capitalization, etc. The penalty for non-compliance can result in the loss of your corporate veil. I've taught more than one shoddy businessman the importance of operating a business by the book.
You may find that an LLC's filing fees are more expensive, but the tradeoff is usually there are far fewer formalities of operation to comply with, and you (and any business partners) can structure ownership and management to suit your needs through an operating agreement (which you can usually keep private). For example, one of my jurisdictions (Illinois), the filing fee is more than double what it is to incorporate an corporation, but the tradeoff is a far, far, FAR more forgiving treatment, especially for personal liability concerns, under Illinois's LLC act.
Also, it's not like an LLC status is set in stone. Should your business take off, most every state allows for LLCs to convert up to an S corporation or C corporation with relative ease.
Operating as an S-Corp is usually attractive - it tends to offer the most advantageous tax treatment. However, in many instances, an LLC can elect to be taxes as an S-corp (and, if the election is appropriately made, you can avoid self-employment tax). A CPA can offer you the best advice on obtaining the most preferential tax treatment.
For my jurisdictions (Illinois and Missouri), I like LLCs for small business operations.
Generally speaking, LLCs are often better for small operations. They tend to offer a corporate veil to protect you from personal liability in most instances, but tend to not require many of the things a corporation will require, which can be things like a minimum number of directors, officers, stock certificates, bylaws, regular meeting minutes, proper capitalization, etc. The penalty for non-compliance can result in the loss of your corporate veil. I've taught more than one shoddy businessman the importance of operating a business by the book.
You may find that an LLC's filing fees are more expensive, but the tradeoff is usually there are far fewer formalities of operation to comply with, and you (and any business partners) can structure ownership and management to suit your needs through an operating agreement (which you can usually keep private). For example, one of my jurisdictions (Illinois), the filing fee is more than double what it is to incorporate an corporation, but the tradeoff is a far, far, FAR more forgiving treatment, especially for personal liability concerns, under Illinois's LLC act.
Also, it's not like an LLC status is set in stone. Should your business take off, most every state allows for LLCs to convert up to an S corporation or C corporation with relative ease.
Operating as an S-Corp is usually attractive - it tends to offer the most advantageous tax treatment. However, in many instances, an LLC can elect to be taxes as an S-corp (and, if the election is appropriately made, you can avoid self-employment tax). A CPA can offer you the best advice on obtaining the most preferential tax treatment.
indianajack
ArboristSite Lurker
In my area the Small business Development Center has been invaluable! Google it up for your area. THIS IS WHERE YOU NEED TO START!
I think this is sound advice and a great place to start. I am in the very early planning stages of RE-starting a business that I started part time several years ago. I think a lot of us are in the same position and have a current job and responsibility to provide for our families. When I started my business part time years ago, it was just my wife and I and a small house. We both worked and I started the business part-time on the side. My business plan only consisted of figuring out how to buy the minimum equipment I would need to do have a "full service" tree business. (Removals,pruning, stump grind, clean-up). I got some insurance, some business cards, some shirts, signs and a small ad in a local rag. I got some jobs big and small and from those jobs I got more and more etc etc. My business didn't so much fail as it just faded away because it had no plan or direction. I didn't know what to do with the money that I made except pay my bills (not much) and then my wife used most of it to pay for other stuff. I had more work than I could do part-time and had to turn a bunch of work down. We had a daughter and suddenly my focus was split even more.
My business was on the ground floor in its development, but with no foundation under it and no plans for the second floor. So I never got off the ground floor.
The basics were there. I had a product to sell, the equipment to do it (pretty much), I had customers new and repeat, I had cash flow, but I had no plan and no direction. I guess I thought as long as I could get jobs and get paid the rest would take care of itself.
As difficult as it is for a lot of us to do, I think you need not only to have a sound business plan, but that plan needs to include you jumping in with both feet. You can't start a successful tree business just by dipping your toe in the water and checking it out. There is a lot of overhead in this business to do it right. You can't just have insurance when you need it on the weekend. You can't just pay for your equipment part time. That stuff is always sitting there costing you money. It needs to be working everyday and making you money.
I was doomed before I started and I realize that now. I thought I was hot $#it in the beginning, gettin jobs and collecting checks, but there is so much more.
I love this work, I still do "side jobs" for friends and family for the fun of it and to keep my skills (and nerve) and I have waited for the right time to do it the right way.
I will succeed this time and achieve my goals and so can you if you have a plan. I now know my strengths and weaknesses. I am good at the work, good with the customers, but I need help with the financials and I will hire that out. We can't be experts at everything.
Good luck and I hope you guys will achieve your goals!
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