5 Great Benefits of Forming an LLC for Handyman Business

LLC for Handyman Business

If you’re a handyman business owner, it’s important to have the right legal protections in place. An LLC can protect your assets from potential lawsuits or liabilities, which isn’t something every business has.

The following are five reasons why forming an LLC for handyman business is worth considering:

Provides Protection against Liability

You can imagine that, with the combination of your name and the business name, the two will become very closely linked. However, if you were to form an LLC for handyman business, it would provide protection against liability for both you and your company.

Problems like this are where an LLC comes in handy. If someone slips on some ice outside one of your customers’ homes and breaks his wrist while shoveling snow off his sidewalk—or whatever—the fact that you own an LLC means that any personal assets (like a home) are protected from liabilities incurred by running a business. This is why forming an LLC is important: it provides blanket coverage against any legal issues related to running a business.

Keeps Your Personal Assets Separate

As a sole proprietor, you’re personally liable for your business debts. If a client were to sue you and win, they could claim against all of your personal assets (like your house) to cover the debt. However, when you form an LLC that’s separate from yourself as an individual, it protects any assets held in your business from being seized by creditors or plaintiffs.

For example: Say that one of my clients sues me for work done on his property. In this case, my personal assets are not at risk because I set up my company structure correctly beforehand and am now protected by the liability shield created by forming an LLC in the first place!

Saves you in Taxes

When you form an LLC, you get to choose how the business is taxed. It can be taxed as a sole proprietorship, partnership, or corporation. When it comes to taxes, LLCs are treated like pass-through entities and their income is passed directly onto the owner’s personal tax returns—which means that the profits of your business aren’t hit with double taxation.

However, if you’re worried about being taxed personally on your LLCs profits, there’s good news—it’s possible to avoid that by filing for corporate status with your state so that it becomes taxable at the entity level instead of on each individual owner’s personal return (this is called “double-level taxation“).

Helps you to Maintain Credibility

An LLC is a business entity that is separate from its owners. When you form an LLC, it’s not like forming a partnership or sole proprietorship—your name doesn’t appear on the articles of organization. Instead, you get to choose a name for your business and file with the state government as an LLC (or sole proprietorship).

The difference between forming an LLC and other legal entities? An LLC can own property and enter into contracts without requiring any authorization from its owner(s). The main advantage of having this separation is that it helps to maintain credibility in the eyes of customers, who won’t associate their experiences with the owner’s personal life.

Offers Flexibility in Structure

The LLC is a hybrid entity, which means it can be structured as either a corporation or a partnership. Many companies choose to form their LLCs as corporations because this allows them to receive the same tax benefits and protections enjoyed by C-corporations. However, an LLC may also elect to be taxed as a partnership if that works better for your business needs.

Additionally, an LLC can have more than one member—a feature that’s not available in other business structures like S-corporations or sole proprietorships. With multiple owners of an LLC who are also responsible for running day-to-day operations and management decisions, this structure offers great flexibility in terms of how you operate your business and allocate responsibilities among members.

An LLC can help you maintain your business without liability.

An LLC is a good option for small businesses. But why? In short, a limited liability company (LLC) is the cheapest way to form your business. It costs less than forming a corporation and it’s easier to dissolve than a corporation if you decide that your handyman business isn’t working out. Additionally, there are three types of taxation: sole proprietorship, partnership, and corporation. An LLC can be taxed as one of these types of entities. An S-Corporation is an entity with more flexibility than a C-Corporations in terms of where profits are distributed within the ownership group (i.e., among members).


So, if you’re thinking about starting a handyman business, we’d definitely recommend that you form an LLC. The benefits are numerous and can be applied to any other type of business.

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