5 Things To Consider When Setting Up Your Lawn Care Business Structure

It is wise to lay a sound legal foundation for your business in your planning stage. This ensures compliance with the commonly accepted business practices, which will save you a lot of headaches in the future. Here are five things that you want to take into consideration when planning the legal aspect of your business.

1. Your Company Name

This is actually a very important aspect of your business. You want to choose a name that is easy for other people to remember, pronounce and associate with. You can use your name combined with a business description like 'John Campbell Lawn Care Service'. This can boost your credibility and create a brand for yourself. However, there is a drawback on using your name. You may face difficulties finding a buyer for your business when you want to put it up for sale.

2. Register your company name

Most states have laws that require all businesses to register their name. You will have to pay a nominal fee for the registration. It is also wise to brainstorm for a few other alternative names. This ensures that you have some other names to choose from if another company had registered the name you want.

3. Decide on the type of business entity

There are primarily four types of business entities. They are sole proprietorship, partners, limited liability company (LLC) and corporation.

Many small lawn care businesses registered themselves under the sole proprietorship category, as it is the easiest way to set up a business. You can use your own credit card to fund your business and still enjoy tax benefits such as business expense deduction. The biggest drawback of sole proprietorship is that you are personally liable for any losses, legal actions, bankruptcy and so on. It is possible for you to lose all your personal and business assets if you ever get into legal troubles.

If you are roping in a friend to joint start the business, then you can register your business as a partnership. If this is the route you intend to take, make sure you have a lawyer draft out an agreement that detailed the exact responsibility of each partner.

A LLC is a hybrid between a partnership and a corporation. It offers the benefits of a partnership as well as protection from personal liability.

A corporation is a business entity that is separate and distinct from its owners. There are more administrative works involved in setting up a corporation and the associated cost may be a bit high for new business. However, as an owner of a corporation, you are not liable for the company debts and it is usually easier to get financing from banks for business expansion.

You may want to discuss with a lawyer who is experience in handling small business issues before deciding the type of business entity to operate in.

4. Local government regulations

Your local government (cities, counties or townships) may have established its own set of regulations for new businesses. You have to check with you local government office to see if you need some special permit before conducting any business.

5. Other licenses

If you intend to offer chemical treatment or pesticides in your business, you will most likely require a special license as well as certification. These requirements vary from state to state so check with the local government office before you start offering them.

Do not rush into starting and advertising your business before you get all the five things done. They may be time consuming but they are very important for your business survival. It is better to lay a proper foundation now than to fix any legal blunders after your business go into full swing.

Jack Greenwood is the webmaster of a GreenLawnCareTips.com which provide information on lawn care and easy lawn care business start up tips. Sign up for your free 7-part Green Lawn Care mini course at http://greenlawncaretips.com today.

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