# To LLC or not to LLC that is the ?



## K_Man2000 (Dec 27, 2008)

Hey just wondering how big you guys think one should be with accounts and such before you open an LLC get plow insurance and or GL insurance coverage. I am considering these but i have only six accounts now ( still looking for more) and im pretty sure the expense of all that would put me at a good loss. Just wondering your opinions. I am considering an LLC so i could show profits and loss, and have some liability protection. thanks for the insight!!


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## grandview (Oct 9, 2005)

if you have 1 account or a 100 you should protect yourself. You need the insurance and you it depends if you want to be an llc or a corp. what ever you do separate your business from your personal stuff .Don't mix it.


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## erkoehler (Sep 25, 2008)

You should have commercial insurance before you drop the plow at your accounts each year.


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## grandview (Oct 9, 2005)

grandview;694612 said:


> if you have 1 account or a 100 you should protect yourself. You need the insurance and you it depends if you want to be an llc or a corp. what ever you do separate your business from your personal stuff .Don't mix it.


What did I say? Must of been drinking.

Consult with a lawyer best money spent and cheaper then hiring one if you get sued.


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## K_Man2000 (Dec 27, 2008)

sounds good i will have to start shopping thanks


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## DNovak07 (Nov 29, 2008)

I don't know why anyone wouldn't form an LLC. There aren't any disadvantages. I'd make sure you have a lawyer write up all the forms for making the LLC. They will ensure that you are protected as an LLC. I hate to see all those lawsuits where people think they are protected by an LLC and if they don't treat themselves as one they can be punished as a single entity. A lawyer can write up the LLC so you can basically go about your norml practices and be protected. Otherwise you can go online and submit a LLC form for about $125. However than you must fallow all the basic rules that fallow.


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## jjmcnace (Dec 6, 2007)

Are there any advantages of forming an LLC for snow removal. If you form an LLC do you need GLI? Or should you have both? Right now I only have commercial insurance on my truck. That only costs me $16 per month, but as far as I know only covers property damage if I should happen to cause any with my plow and or truck.


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## K_Man2000 (Dec 27, 2008)

where are you getting plow insurance for $16.00 a month? i assume thats on top of your regular insurance, thats so cheap i got quote around 1200 a year,.


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## hotshotgoal30 (Dec 29, 2008)

im not saying i disagree with anyone but i can understand where he is coming from. he wants to get more buisness to offset the cost in enduring the llc. makes sense because if you only have 6 accounts you probably will loose money when adding in fuel costs. i understand about being protected but there is no point if you loose. i think maybe you should try to get more driveways before next season and then get it maybe it would be more worth while for you. untill then id just be extremly careful


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## K_Man2000 (Dec 27, 2008)

good advice, every storm i pick up one or 2 at this rate i should hopefully have enough soon thanks


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## jjmcnace (Dec 6, 2007)

K_Man2000;697964 said:


> where are you getting plow insurance for $16.00 a month? i assume thats on top of your regular insurance, thats so cheap i got quote around 1200 a year,.


You are correct the $16 per month is on top of the regular monthly premium. It costs me a total of $900 per year.


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## toptech72 (Oct 7, 2008)

What ever you do GET INSURANCE. You will damage something sooner or later. It can cost alot more to pay for the repairs out of your own pocket than it will cost you for the insurance.


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## Superior L & L (Oct 6, 2006)

toptech72;698283 said:


> You will damage something sooner or later. .


We damage something 50% of the times we go out. It May be something as simple as a mail box or as big as hitting a building (not very offen)


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## TravelMug (Jan 2, 2009)

Nevermind.


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## JDT (Nov 16, 2008)

This is my 3rd year in business. The first yr I had 2 plowing accounts. The second I had 12. I learned after talking to a customer that owned a shopping plaza that I should cover myself. I went out and got general liability, and commercial auto insurance. Last summer I formed the business into an LLC. I felt that it was time. If you don't cover yourself, there is nothing to protect you. Atleast if you LLC and someone wants to sue you it puts some sort of protection up against your house and other personal belongings. No matter how many customers you have you should do something. You are going to grow eventually, right?


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## Harleychvy (Nov 24, 2008)

I have a ryder on my building contractor liability policy for plowing, I dont remember how much extra it is, but it's really not a lot to cover your butt. i decided to start shopping around for better truck coverage. I got a 1,000,000 policy on my truck and by swithing companies, also moving my wifes car , it's saving me almost 600 a year. No ones ever asked for proof of insurance before, but this year they've started, i'm sure glad I have it, so I can continue getting account. One thing I did find out, is even if its a private road with a few homes on it, the underwriters have to approve you plowing it.


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## PGLC (Jan 3, 2009)

hotshotgoal30;698009 said:


> im not saying i disagree with anyone but i can understand where he is coming from. he wants to get more buisness to offset the cost in enduring the llc. makes sense because if you only have 6 accounts you probably will loose money when adding in fuel costs. i understand about being protected but there is no point if you loose. i think maybe you should try to get more driveways before next season and then get it maybe it would be more worth while for you. untill then id just be extremly careful


You need to organize some way to protect yourself personally. LLC's are great, especially for individuals. If you do not organize and are sued, you could lose EVERYTHING you own. Not worth it to save a few hundred bucks. I organized as an LLC in Wisconsin online for $130. That's all it takes. Get insurance too or your biz could be over before it really gets started.


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## hitower (Nov 8, 2008)

PGLC,

I am about to form my own LLC online in Wisconsin, how long did it take? Was it difficult?
My insurance guy said I'd be better off having an attorney do it, but I figure he was trying to steer some business to his buddy!


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## NicholasMWhite (Oct 5, 2008)

hitower

I did it online last year in about 15-20 minutes. There's no need to pay a lawyer at all.


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