My 18 year old brother runs a small lawn business. He is currently making around $40k a year after expenses, before taxes, on 90 accounts. He works about 12 hours a week (plus marketing and estimates) and pays one worker $320 a month. He has never paid taxes on his own before. He intends to grow this business and do lawns for the next 30 years.
A lawn business can grow very easily, so he expects to be making $125k after expenses, before taxes in about 3-4 years.
Should he incorporate? And for what reasons, tax, liability, or both? What type of corp (S-corp)?
What are some examples of admin. costs and liability risks out there for him? Does he need to hire an agency to do the set-up or can he do it on his own, with some help from his dad and I? How much does it cost to set it up?