Starting a Company & Name?

[ChrHerrman]

I have been doing basic tree work for the last couple years as a side job and feel like I am ready to make the jump to a business. I will still keep my other job, but this way I will be legal and able to carry some insurance. I do about 2 jobs a week after work in the evenings and during the weekends. I feel like I charge reasonable rates to homeowners as wells as to other tree companies. Tree companys- don't worry, I don't give cut-throat prices and I take this line of work seriously. I have a small chipper and dump trailer and since Irene I have been pretty busy. In a few years I would like to look into climbing and eventually upgrade to a dump truck and larger chipper or a chipper/box combo trailer. I am trying to make baby steps so that I do not go overboard.

I recently did a trimming job for my neighbor who is an accountant and he said he will do all the paperwork for Incorporating me in return. He suggests I become INC. for the obvious reasons of liability, but also so I can get some insurance, and claim my truck, trailer, tools, and expenses for tax purposes.

My questions are:

Which is better from your experience Inc. or LLC?

What is the most affordable insurance company for this type of work?

Is your company name your personal name or a company name you came up with? If so how did you come up with this name?

 

[Rudedog]

LLC. Don't have your name in the Company name. You own 99% and your wife owns 1%. Takes very little time to open an LLC with your state (Articles of Organization). You then obtain an EIN number from the IRS. You will need to make an operating agreement which you can find a generic fill in the blank one online. You will be the Registered Agent. You can also have yourself giving $99 and your wife $1 as initial capital contribution. Get a business account when you have all of this and keep your money separate.

 

[Grace Tree]

I know a lot of guys have set up under an LLC. The advise my lawyer gave me is that in circumstances of extreme liability, the protections of an LLC for very small companies usually flies out the window because the business and personal finances and assets get mingled. I don't know if that's correct. 'Just passing on the advise I paid for. One hint on picking a name. Don't pick one that rhymes with anything ridiculous. I was in a bar band once called DEAD RINGER. When we finished a gig and came out of the bar someone had changed the marquis to DEAD SINGER; and rightfully so.
Good luck,
Phil