Looking to start up a business

[swyman]

Time to pay my .05. "should I start a tree business" was my post about a year and a half ago. I went through the same thing you are, went into it feeling confident and then some similar responses and I to got pissed off and flew off the deepend for a few pages.....well read about it if you want. I can tell you from my experience, I had enough cash to buy a 60' truck, and a bandit 250xp. I already had saws, bobcat, gooseneck trailer and a 1 ton truck. Not that that makes me any better a Treeman but I am pretty efficient. The best thing I have is a 20 year retired tree care owner that goes with me on almost every job, point being these folks are right nothing can replace experience in this industry. Without that guy showing me how to study a tree, proper equipment placement, how to cut, where to cut, how to rig..yada yada yada, would have made this extremely difficult (and it still is not easy by any means). If you can, follow the advice from the jedi masters young Luke. You're age is perfect, if you can swing it work for someone and you will learn the ins and outs on their dime. It has been a very expensive endeavor, equipment up keep is not cheap or easy and I have decent stuff and it's paid for. Just give it a couple years man, I know its hard but used equipment is higher than hell right now not that you need a lot to start but efficiency is the key. I don't want to keep rambling and these guys I have found have been right on weather I liked what they had to.say or not. If you want to hear more pm me and I could give you my number, not going to bore everyone any longer. Be safe, Shane

 

[bull2five]

Hey there,

I'm looking to start up a tree service. I was wondering if anyone with an established business could give me a few pointers on getting started. Any help would be very appreciated.

Did you start that business yet?
If so, is it LLC, S corporation or C corporation?

I'm trying to register a new business and would like to know what kind of business some of you other guys picked to start your business and why you picked LLC, S corporation or C corporation?

Thanks for your help in advance

 

[Grouchy old man]

Why not a sole propreitor until you have something worth incorporating for? I'll never understand why somebody just starting out would structure a business as a LLC or S corp right off the bat. And you certainly don't want a C corp because of the way it and you are taxed on the same money.

 

[bull2five]

Why not a sole propreitor until you have something worth incorporating for? I'll never understand why somebody just starting out would structure a business as a LLC or S corp right off the bat. And you certainly don't want a C corp because of the way it and you are taxed on the same money.

Personal liability.

 

[arborealbuffoon]

Start a tree trimming concern if you wish. I don't want to even hear about it when you're finally done.

If I won millions of dollars tax free right now, the LAST thing I would ever put a dime into would be a tree service.

Don't ask me why I say this. Have a better life!

 

[Grouchy old man]

Personal liability.

That's often misunderstood. I can tell you that all your suppliers are going to want a personal guarantee. You will be personally responsible for payroll and sales taxes. Matter of fact anybody that you give signatory authority to for your bank accounts can be held personally responsible even if they are only employees. If somebody gets hurt and you get sued the "corporate veil" will not protect you either especially if there is neglegence.

 

[Garden Of Eden]

That's often misunderstood. I can tell you that all your suppliers are going to want a personal guarantee. You will be personally responsible for payroll and sales taxes. Matter of fact anybody that you give signatory authority to for your bank accounts can be held personally responsible even if they are only employees. If somebody gets hurt and you get sued the "corporate veil" will not protect you either especially if there is neglegence.

Can you cite? My attorney advises me otherwise, and he only practices law, thats his sole focus. Been doing do for over 20 yrs. My corporation is responsible for tax and payroll. I also am an employee. I assure you my accountant and attorney, who both can sign on my acct, couldn't be held responsible, unless they themselves messed up.

Jeff

 

[Grouchy old man]

I assure you my accountant and attorney, who both can sign on my acct, couldn't be held responsible, unless they themselves messed up.

Just ask my wife and me. She was the office manager and signed the checks for her previous husband's business. He dies leaving unpaid witholding, sales and corporation taxes. The business had little assets and they had little themselves though thank God he did have a life insurance policy where she was the beneficiary. The feds got her first making her pay over 60K. Then she married me and 10 years later the state of NY made (now us) pay over 15K. They started to garnish her pay. She was told by the IRS, the state and our accountant that the reason she could be held personally responsible was because she had signatory authority on the company accounts and should have seen to it that the taxes were paid. Witholding and sales tax is a fiduciary responsibility placed on the business principles, controller or other persons controlling the money not the corporation. Since sales tax is collected from the customers and witholding is deducted from the employees pay there should be no excuse that the money is not there. So if there is no money or the taxes weren't paid you are right, somebody messed up.

 

[Garden Of Eden]

Just ask my wife and me. She was the office manager and signed the checks for her previous husband's business. He dies leaving unpaid witholding, sales and corporation taxes. The business had little assets and they had little themselves though thank God he did have a life insurance policy where she was the beneficiary. The feds got her first making her pay over 60K. Then she married me and 10 years later the state of NY made (now us) pay over 15K. They started to garnish her pay. She was told by the IRS, the state and our accountant that the reason she could be held personally responsible was because she had signatory authority on the company accounts and should have seen to it that the taxes were paid. Witholding and sales tax is a fiduciary responsibility placed on the business principles, controller or other persons controlling the money not the corporation. Since sales tax is collected from the customers and witholding is deducted from the employees pay there should be no excuse that the money is not there. So if there is no money or the taxes weren't paid you are right, somebody messed up.

Not knowing all the circumstances, off the top of my head, I'd say the business was incorrectly set up. Why don't they go after employees who can sign on these major corporations then? I'm sticking with unique circumstances in your case, perhaps because they were married? And now you two are married? I've never hear of that, and they guy who gets paid to protect me, says it won't happen to me. I feel bad for you, however, there are a million unpopular comments I could make, but won't.

Hope it all works out for you.

Jeff

 

[bull2five]

I have potential customers that want me to remove trees for them but want me to be licensed and insured. Can you do both as sole proprietor?
I just want to be licensed and insured to help get more work and have a better piece of mind.

 

[Garden Of Eden]

I have potential customers that want me to remove trees for them but want me to be licensed and insured. Can you do both as sole proprietor?
I just want to be licensed and insured to help get more work and have a better piece of mind.

By asking this, you are implying you aren't now. How long have you been working without?

 

[Grouchy old man]

Jeff, it was an S corp. I'm just saying that corporations don't provide the protection that people think. Use them for tax advantages or for investors, partners etc but if you screw up there are plenty of greedy lawyers out there that know how to get money from you after they get done with your insurance and company assets. Think about one of those instances where a boom or bucket failed. Say the worker was 30 years old and now he has to spend the rest of his life in a wheel chair and needs constant care. He can no longer support his family. It was your responsibility as the business owner to see to it that the truck was properly maintained and inspected. After your insurance pays to the limit of coverage what do you think is going to happen?

I have potential customers that want me to remove trees for them but want me to be licensed and insured. Can you do both as sole proprietor?
I just want to be licensed and insured to help get more work and have a better piece of mind. .

Absolutely. Matter of fact you shouldn't be in business without being insured and having whatever licenses your are required to have.

 

[Garden Of Eden]

Jeff, it was an S corp. I'm just saying that corporations don't provide the protection that people think. Use them for tax advantages or for investors, partners etc but if you screw up there are plenty of greedy lawyers out there that know how to get money from you after they get done with your insurance and company assets. Think about one of those instances where a boom or bucket failed. Say the worker was 30 years old and now he has to spend the rest of his life in a wheel chair and needs constant care. He can no longer support his family. It was your responsibility as the business owner to see to it that the truck was properly maintained and inspected. After your insurance pays to the limit of coverage what do you think is going to happen?


Absolutely. Matter of fact you shouldn't be in business without being insured and having whatever licenses your are required to have.

That's one reason I dont have a boom truck. My insurance won't cover it unless I can prove inspections. Also, there has to be some risk a person 30 feet up in a boom takes. It's not always someone else's financial responsibility when an accident occurs. After my insurance pays the limit, they will have to come after my corporations assets. Which are close to zero. Besides, if worst case happened, and I really wanted to avoid it, I could file bankruptcy on the corp, and tomorrow open a new one. Same equipment, as that's under a separate leasing company.

Jeff

 

[beastmaster]

Hey Bermie, go #### yourself. You don't need to be an #######. What makes you feel the need to be a douche. I should be able to answer on honest question without getting some #### head response. What are you, 10 years old?

I think Bermie hit the nail on the head. Maybe you should do some self reflection, grow some , and listen to those that have seceded at what you only wish for. I hope you are just trolling, otherwise your about the dumbest MF I've seen on this board.

 

[Grouchy old man]

That's one reason I dont have a boom truck. My insurance won't cover it unless I can prove inspections. Also, there has to be some risk a person 30 feet up in a boom takes. It's not always someone else's financial responsibility when an accident occurs. After my insurance pays the limit, they will have to come after my corporations assets. Which are close to zero. Besides, if worst case happened, and I really wanted to avoid it, I could file bankruptcy on the corp, and tomorrow open a new one. Same equipment, as that's under a separate leasing company.

Jeff

Unfortunately that is the way you have to protect yourself these days. If negligence is proven, and you can bet some shyster lawyer will be all over that even if you did everything right, they will go after you after they clean out your company. I know people who have nothing in their name (no house, bank accounts, vehicles etc) just for that reason.

 

[bull2five]

By asking this, you are implying you aren't now. How long have you been working without?

Are you OSHA?:msp_sneaky:

I've been doing it sparingly on and off for 10 years but only for family, friends and few neighbors. Most of the time for free. The firm that I work for is extremely slow and so I wanted to look into starting a business on the weekends to help out financially and even full time if I enjoy it as much as I think that I do.

 

[jefflovstrom]

Are you OSHA?:msp_sneaky:

I've been doing it sparingly on and off for 10 years but only for family, friends and few neighbors. Most of the time for free. The firm that I work for is extremely slow and so I wanted to look into starting a business on the weekends to help out financially and even full time if I enjoy it as much as I think that I do.

Ah, So you are a 'Hack'!
Oh well, at least you admit it.
Jeff

 

[treemandan]

do you know how to climb?
do you know how to cut down a tree?
can you do them both at once?

don't care who you are, that's funny.

 

[treemandan]

This type of topic is posted enough to where I wont answer because it won't be nice.
Jeff

Nice is fer suckers, ass kissers and telemarketers.

 

[jefflovstrom]

Nice is fer suckers, ass kissers and telemarketers.

ARE YOU SAYING I AM NOT NICE, #######!?
Jeff :msp_sneaky: