1 4 Landscape Business Organization


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1 4 Landscape Business Organization

  1. 1. Landscaping Plant: Camellia Term: Business Structures
  2. 2. Camellia Camellia japonica <ul><li>Plant type: Interior Plant, Shrub </li></ul><ul><li>USDA Hardiness Zones: 7a to 9a </li></ul><ul><li>Height: 10 – 15 ft, Spread: 6 – 10 ft </li></ul><ul><li>Exposure: partial shade to full sun </li></ul><ul><li>Bloom Color: Lavender, Orange, Pink, Red, White, Yellow </li></ul><ul><li>Bloom Time: Winter </li></ul><ul><li>Growth Rate: slow </li></ul><ul><li>Landscape Uses: Container, Espalier, Standard, Specimen </li></ul><ul><li>One of few plants to flower in Winter </li></ul>
  3. 3. Business Entities <ul><li>When beginning a business, you must decide what form of business entity to establish. </li></ul><ul><li>Your form of business determines which income tax return form you have to file. </li></ul><ul><li>The most common forms of business are: </li></ul><ul><ul><li>Sole Proprietorships </li></ul></ul><ul><ul><li>Partnerships </li></ul></ul><ul><ul><li>Corporations </li></ul></ul><ul><ul><li>S Corporations </li></ul></ul><ul><ul><li>Limited Liability Company (LLC)  </li></ul></ul>
  4. 4. Sole Proprietorship <ul><li>A business owned by one person (the proprietor). The most simple type of business organization. </li></ul><ul><li>Many use the d.b.a. (doing business as) designation. </li></ul><ul><ul><li>Example: </li></ul></ul><ul><ul><li>John Smith, dba Smitty’s Mower Repair </li></ul></ul>
  5. 5. Sole Proprietor Taxes <ul><li>Business income is reported to the IRS annually on a schedule C under the owner’s social security number. </li></ul><ul><li>You must pay estimated taxes quarterly to Virginia and the IRS </li></ul>
  6. 6. Sole Proprietor <ul><li>There is no liability protection – if the business is sued – the owner is personally sued. </li></ul><ul><li>The higher the risk of injury in the job, the riskier this is as a business entity. </li></ul><ul><li>Example: A new employee slips when mowing and cuts off his toes. He says he was not properly trained. He sues the owner for damages. </li></ul><ul><li>If the business is not worth the damage amount, the owner is responsible for payment. </li></ul>
  7. 7. Other Types of Business Entities <ul><li>Partnership – Just like a Sole Proprietor with more than one owner. </li></ul><ul><ul><li>Income reported on personal income tax – divided according to partner interest. </li></ul></ul><ul><ul><li>Percentages established by contract. </li></ul></ul><ul><ul><li>Examples </li></ul></ul><ul><ul><ul><li>50/50: divide all income evenly </li></ul></ul></ul><ul><ul><ul><li>90/10: 90% to operator, 10% to silent investor </li></ul></ul></ul><ul><ul><li>No liability protection – if the business is sued, all partners can lose private assets </li></ul></ul>
  8. 8. Corporations <ul><li>LLC (Limited Liability Corporation) </li></ul><ul><ul><li>Taxes either as a individual or corporation </li></ul></ul><ul><ul><li>Personal assets are safe from lawsuits </li></ul></ul><ul><ul><li>Easy to establish </li></ul></ul><ul><ul><ul><li>Apply with the State Corporation Commission </li></ul></ul></ul><ul><ul><li>Need to have Corporate By-laws </li></ul></ul><ul><li>Corporation (C or S Corp) </li></ul><ul><ul><li>Taxed as a corporation and as individual </li></ul></ul><ul><ul><li>Personal assets are safe </li></ul></ul><ul><ul><li>Complicated to set-up – need legal help </li></ul></ul>
  9. 9. Bonding <ul><li>A surety bond is something that is necessary for starting a landscaping business </li></ul><ul><li>Many clients will require that you are bonded before you begin work. </li></ul><ul><li>Bonding means that a third-party entity has guaranteed that you will perform services as required. </li></ul><ul><li>Like insurance for business reputation. </li></ul><ul><li>This is a serious legal consideration because if you aren't bonded and you fail to complete a project, you might wind up on the wrong end of a lawsuit. </li></ul>
  10. 10. Types of landscaping businesses <ul><li>Installation </li></ul><ul><ul><li>Sub for general contractors </li></ul></ul><ul><li>Commercial </li></ul><ul><ul><li>Installation </li></ul></ul><ul><ul><li>Maintenance </li></ul></ul><ul><li>Residential </li></ul><ul><ul><li>Installation </li></ul></ul><ul><ul><li>Maintenance </li></ul></ul><ul><li>Interiorscape - growing area </li></ul>
  11. 11. Interiorscaping <ul><li>The practice of designing, arranging, and caring for living plants in enclosed environments </li></ul>
  12. 12. Interiorscaping Firms <ul><li>Contract for design, installation & maintenance of interior gardens for hotels, conference centers, shopping malls </li></ul><ul><li>Provide structure, lighting, & plumbing </li></ul>
  13. 13. Landscape Specialties <ul><li>Xeriscapes – drought resistance </li></ul><ul><li>Native Landscapes </li></ul><ul><li>Sustainable Landscapes </li></ul><ul><li>Heritage Gardens </li></ul><ul><li>Tree Care </li></ul><ul><li>Lawn Care </li></ul><ul><li>Sports Turf </li></ul><ul><li>Rooftop Gardens </li></ul><ul><li>Outdoor Lighting </li></ul><ul><li>Patios & Barbecues </li></ul><ul><li>Playgrounds </li></ul><ul><li>Water Features </li></ul><ul><li>Niche Markets – specialty areas </li></ul><ul><li>Helps small companies to compete with large ones. </li></ul>