Entity Types for Your Business

One of the most basic, yet crucial risk management decisions a tree care company owner needs to make is how to legally set up their business. The goal is to create a separation between the business and your personal assets so that a terrible accident or lawsuit doesn’t destroy all of your wealth. We always recommend discussing this with your business attorney and accountant, but below are some of the most common business entity types to help you determine which will work best for you and your tree service.
Sole Proprietorship
Partnership
Corporation (C or S)
Limited Liability Company (LLC)
Watch the video above or click below to read more on each of these types of business entities for your tree care company!
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A LLC can be designated to be taxed as a S Corp. You have to pay yourself a normal salary, but profits beyond that (distributions) can be taxed at the lower capital gains rates.