on- line incorporating service?

[miketina]

Hello all,
I was wondering if anyone has used one of these services and how it turned out. A lawyer wants to charge $1000 to set us up as a corporation, which I think is ridiculous since I found the service on line for $200. Any feedback woulld be appreciated.
Thanks

[K.Carothers]

I don't know about the on line deal. My CPA charges $750 for a LLC. I like to have someone in person that I can talk with anytime I have a question. A good CPA is worth every penny.

kc

[turf dog]

I would use a lawyer. Try to trade services. If your are incorporating for tax purposes or liability reasons? When you incorporate for it to be legit you have to have yearly stockholder meetings and keep minutes, even if it is yourself. If you were to get sued they can subpoena your corporate records. If you have not been doing that, the corp is not recognized as being legit and the liability falls on you personally. So in short when setting up a corp make sure you do it right.

[miketina]

I know the advantages for liability, which is why we want to incorporate, but is there tax advantage? If there is, what are they? Thanks for the idea Turfdog, will try the swapping services idea.

[mr.we.mow.grass]

My lawyer charged me $180 to set it up and $50 for the state fee (Mississippi) I would shop around.

[turf dog]

The tax advantage of a Sub Chapter S corp is that you can pay yourself a salary. The salary is taxed at your personal tax rate plus FICA. The rest of the money in your Corp you can pass thru as a distribution and you only have to pay your income tax rate. When you are a sole properitar you have to pay income tax and self employment tax which is FICA. This is were a CPA comes in handy. They can help you set your salary. If you set your salary way to low the irs:gunsfirin might get a little upset.

[AintNoFun]

when i first started my local SBA small biz center did all the paperwork for me all i had to pay was the state filling fees.. but now i think our lawyer charges like $300 + fees for each of the LLC's we did....

[RRHAMMONS]

The tax advantage of a Sub Chapter S corp is that you can pay yourself a salary. The salary is taxed at your personal tax rate plus FICA. The rest of the money in your Corp you can pass thru as a distribution and you only have to pay your income tax rate. When you are a sole properitar you have to pay income tax and self employment tax which is FICA. This is were a CPA comes in handy. They can help you set your salary. If you set your salary way to low the irs:gunsfirin might get a little upset.


You are correct, the IRS would be upset!

[nherweck]

I don't know about the on line deal. My CPA charges $750 for a LLC. I like to have someone in person that I can talk with anytime I have a question. A good CPA is worth every penny.

kc

I've always thought that the only dumb questions are the questions not asked...so here it is! What is a CPA? I've seen CPA in MANY threads on this site, but I'm clueless to what it is. Thanks!

[K.Carothers]

I've always thought that the only dumb questions are the questions not asked...so here it is! What is a CPA? I've seen CPA in MANY threads on this site, but I'm clueless to what it is. Thanks!

No such thing as a dump question. That's how we all learn.

CPA- Certified Public Accountant

kc

[rodfather]

5 years ago, I started to use an on-line service to incorporate. Biggest waste of time and money. I'm glad I stopped halfway through the process. Found out later through using my business attorney instead of an on-line service the best way for my company to go was to form an LLC, and not to incorporate.

[turf dog]

Another byproduct of of forming a business entity,getting ins, and using a cpa is the pyscological factor for me. Perception becomes reality. You are a business owner not just running mowing yards.

[nherweck]

Thanks K.Carothers!

[miketina]

We are being told the best way to go is the S-corp. Does anyone know why they are beng told something different and forming a LLC?

[ShepDog]

An LLC is for liability and taxes. It keeps your personal liability out of the company. Anyone can incorporate as an LLC, you don't need to be a " company" . I trust Incinablink.com. I know these people personally, and they are not scam artists or B.S. Also, what benefits ( tax wise) are you getting from an S-corp?

[miketina]

With an S-corp, you give yourself a salary and that is all that is taxed, instead of everything your company made in revenue.

[Patriots]

I had good luck with legalzoom.com - was a little over $400.00 (base package) to form an LLC in Texas.

[ShepDog]

I inc'd with a Delaware Company. They have Registered Agents in all 50 states, and only cost about 300. Never had a problem.

[Az Gardener]

Seems there are advantages to having Delaware or Nevada corps but I can't remember what they were. A good CPA can make you as much $ as another guy in the field or more. I like buying from my clients show a little reciprocity So I hired one of my clients kids as my attorney, great move the guy is a genius and with dads firm behind him it carries a lot of weight. The clients don't really need my business but at has made for a better relationship. The legal stuff is another tool in your trailer, there to make you money or at least keep you from loosing it.

[PRISTINE LAWN SERVICE]

In Oklahoma the Secretary of State has a website to register your business. For $50 you can fill out a form (takes maybe 10 minutes) and the next day the respond back with all of your info. There is no reason to use one of those companies that charge $100+ and takes them 2 weeks to do it for you.