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View Full Version : Incorporation v. sole proprietorship


dmk395
06-20-2001, 08:01 PM
For those who have already incorporated, when did you make the decision to? Was it something an accountant or lawyer suggested or did you simply decide through your own research that it was time?

Stonehenge
06-21-2001, 09:42 PM
I made the decision while I was researching, putting together a biz plan. My mother has been in biz for 20+ years, offered some valuable insight. We're a sub S corp. Easier on the taxes, good liability shield.

The biz has been an S corp since day one.

If you're a sole proprietorship, as soon as you're ready to not have all of your personal wealth up for grabs should someone decide to sue you, that's when you should incorporate.

machine
06-24-2001, 11:31 AM
With a Sole Prop, LLP, and S-Corp you can never lower your self-employment tax below the minium Social Sercuity Tax. It is only possible with a C-Corp or an LLC.

dmk395
06-24-2001, 12:17 PM
Being seasonal do you pay yourself over 52 weeks a year salary?

Stonehenge
06-24-2001, 03:55 PM
So far, I've paid myself one lump sum at the end of the season. I realize not everyone is able to do that.

Fantasy Lawns
06-24-2001, 04:25 PM
we're an S corp from day 1 also .....due to the liability issues & tax perks ....(also in Fla .....corp officers do NOT have to be covered under WC ....the employees are thou)

....each year we hold one of our annual corporate meetings at the Daytona 500 & Pepsi 400 ...almost everything one does is "business related" ....business dinners, "stress seminar's or corporate meetings", company vehicle & gas.....long as business is discussed or related.....keep the receipt or even better just use the corporate card ;->

ultimately it is the companies $$ being spent ...I'm just a major stock hold whom happens to be an officer of the corp..... it lowers the companies taxable income ....n every company perk ....is less after tax dollars of your own you would have paid anyways on purchases ....even though my Accountant say's I can't use the Big Screen TV as a write off ...I was able to purchase a "Corporate Digital Camera"

Talk to a CPA ....they will SAVE you $$$ .....we pay our selves monthly .....