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One Lawsuit Will Wipe You Out
One Lawsuit Will Wipe You Out
If you’re running a construction business as a sole proprietor, your personal assets are exposed every single day.
No LLC means one lawsuit, one unpaid payroll tax bill, one subcontractor dispute — and a creditor can come after your truck, your house, your savings. That’s not hypothetical. That’s the law.
An LLC separates your business liabilities from your personal assets. For most contractors, it’s the single cheapest form of protection you can buy. California’s minimum annual LLC fee is $800. That’s it. Compare that to what one judgment could cost you.
And here’s what most don’t know: an LLC can also elect S-corp taxation — which means you could be reducing self-employment tax on top of the liability protection. Two benefits, one entity.
If you’re doing $500K or more in revenue without an LLC, you’re taking on personal risk that has no business upside. Fix this.
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#Construction #Contractor #LLC #LiabilityProtection #ContractorCPA #TaxStrategy
Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.