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Serious question, did adding an LLC really change how you get paid? My friend's before-and-after surprised me
My friend runs a small landscaping business here in Boise and for the first year he worked as a sole prop. He had a client who paid late, and when he tried to push back the guy basically said there was no contract so too bad. My friend got a lawyer to set up an LLC and a simple one-page service agreement, and the difference over about 4 months was big. Now the agreement spells out a 1.5% late fee per month and the client's name is checked against the state business registry before work starts. He said one late payer from last spring finally paid up front because the paperwork had the company name on it. I am not a lawyer and I am just going off what he told me, but it made me wonder how much of this is just having the right forms on hand. For anyone who runs a small shop or service business, did forming an LLC really change how clients treat you, or was it mostly the contract that did the work?
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