Business pro's I have a question

[ditchdr]

SO here is the deal, the lawn company is going so much better then I ever thought it would. I mean who would have thunk that going from a simple well used Craftsman ridding mower, a wal-mart edger and weed eater, into 3 full time res trucks,a full time commercial truck and a tree truck in les then 2 years. I guess it goes to show that hard work and exceeding customers satisfaction pays.

Now for this year were going to open up in the middle of the state as well. Then hopefully with in the next year we will be set up in every major city in SC. Then we will be moving into NC,GA, and FL.

Now here is the question. Would it be best to open a holdings company that owns each business to save on taxes, or should I group them all into one? The names for each one will be different but all the money will be going to the same place.

Not only that I am toying with the idea of opening a Critical care ambulance transport company, as well as a bike shop again. I know it can all be done, I know it will not be easy, and i have no idea on how to get it all straight. The work is the easy part, the bizz side of it is what I have no clue about.

 

[VIPER]

i would suggest hireing an accountant or finding you a business partner who is sauvy in that line. You could potentially get yourself into a big pickle if you dont do it correctly.

 

[Rainbow7]

You need to find a really good accountant and a devious lawyer, who can give you advice on this. Ultimately, the best structure to use is the one that suits you best.

 

[TIMMYDUCK]

Soley owened propriorship is the only way to go..??????

Maintain all control or lose what you have..............

 

[Commuta_Busa]

Do you have employees? Are you currently a LLC or a S-Corp?

What timmyduck wrote is very true. Don't get a partner it just makes a big mess of things. I good accountant / tax accountant and attorney are all very important. They know all of the ins and out within your state.

 

[BlondeOnaBusa]

I agree with some of the others....a good accountant and attorney are essential but do not get a business partner, they can stab you in the back and take all that you have worked for.

 

[Vonderbach]

The most important thing, no matter what you do, is to find an ethical accountant. Everyone here is correct, you need a good accountant, but often times, a good accountant and an ethical accountant can be hard to find. Under no circumstances do you want an accountant that is going to err on your side, and give the IRS, State or Local Municipalities any reason to second guess your accounting practices.

Start with the AICPA. Do not trust friends or relatives to do your accounting for you. They are compromised by their personal relationship with you and will not retain the same independent responsibility in the eyes of the law.

And on a personal note, maintaining two or more separate corporations/LLCs requires a tremendous amount of duplication of effort and expense. Trust me, I'm doing it right now and it's sometimes very regrettable.

Liability Insurance X2
Professional serives X2
Stationary/Business Cards X2
Payroll Services X2 (Unless you do it yourself)

One of the benefits, few but true is that you can write down losses for the start-up. It's a great benefit during the first year if you plan on buying new equipment for the new business. If you're just going to open a new shop and loan your existing equipment to the new location, it won't be of much help.

 

[skydivr]

Don't get too big for your britches too fast; that's why most businesses fail within the first five years. Once you lose the ability to personally control it, that's when it starts getting hard. You do need some kind of corporate entity to protect your personal assets (LLC seems to be the most popular right now). If you are too busy, raise your prices a little you'll make more money with less headaches. Find an ethical accountant, and conduct your business in an ethical manner (don't be working on the 'cash' ecomomy) as it will eventually catch up with you and you won't like it. Get out of debt; getting all your stuff paid for is a much better, long-term recipe for success.

I have a friend in the same line of work that has been very successful. He started getting too big too fast, and realized he was making less money and more stressed. He cut back on his payroll and is happier and making more money than he was when he started getting larger.

My family's business celebrated 50 years last year - less than 1% of businesses make it that long.

 

[Rainbow7]

The most important thing, no matter what you do, is to find an ethical accountant.

No, what he needs is an accountant who understands why it's called "accounting". - It's all about how you account for things.

The average so-called accountant is in fact a glorified book keeper.
A proper accountant is someone who knows the ins and outs of the various laws for their client's situation, and knows how to use them to best advantage.

A good accountant is someone who understands that paying a cent more tax than you absolutely have to is financial stupidity.

My own accountant is incredibly devious, to the point where I think she gets an almost sexual thrill out of minimising my taxable income. - It's thanks to her that I drive a $55,000 car, which I otherwise would never have got.

IMO, a great accountant has the morals of a weasel, when it comes to tax planning.

But, hey, that's just me. If you want to let Obama take your money and redistribute it to the unemployed and unemployable, that's up to you.

 

[Vonderbach]

I hope you're comfortable with a morally bankrupt accountant when you get audited. Because I get warm fuzzies knowing that everything done on my books is 100% legit. I would be sweating hard if my accountant were morally questionable. I also hope you don't let her manage your books without your oversight, because if she's willing to screw the IRS, she might screw you too. ??? Morals go both ways.

 

[Commuta_Busa]

It can sometimes be like picking a lawyer. The nicest one may not be the best for the situation. Of course nothing illegal should be done. I understand what you mean Vonderbach. I don't think anyone would fish for an accountant that is unethical in his practice but you want an accountant that's on your side vs. their side.

 

[Vonderbach]

See I look at it as a black and white issue really. I don't want someone on my side, I want someone on the side of what's correct. I know it may seem like I'm splitting hairs, but I would prefer there be no professional bias one way or the other. Provide me with the deductions that I am entitled to, but don't bend the rules. I would love to say "screw the IRS" but I also like to pick battles where I might have a chance of winning.

 

[ditchdr]

A business partner is a big NO go. I had one before, he has a MBA, works for a big company, and has the same love of motorcycles as me. So we went into business. After a year we were broke. Even tho I was putting 10K a week worth of labor on bikes and out inventory was selling by leaps and bounds. Matter of fact we had 3 main vendors, between the 3 we bought over 270K worth of stuff AFTER our set up orders. But if you checked the bank we were broke. Well the shop was, my "business partner" we making a killing by pretty much stealing from me. All he was paying was the taxes and vendors. Our rent was 3 months behind, the elec bill was 2 months behind, not to mention all the other problems. Pretty much i was working 24 hours at my EMS job, get off work go straight to the shop but in 16 hour days there 2 days in a row, then go back to EMS. In the end I was broke, over worked, and had no life. Oh and I had a CPA who's bike I worked on look over my books. I was missing over 140K in money, money that could not be found.

I will start looking for good tax, CPA and lawyers soon (next day or 2). I just dont want to fail at this, it is to much of a cash cow, and to be honest the work is soooooooo easy. Edge,mow,weed eat, blow, repeat lol

 

[Kento-Moto]

Congrats on the success! And yes I believe in hiring experts and for very serious decisions have a back up expert check the first expert. In short, hire a good CPA and business attorney.