Incorporated?

[EJD Lawnpride]

What are the benefits of being incorporated? My lawyer and accountant say to do it. What do you think?

[PlatinumLandCon]

It all depends on how much you make, your assets, the amount of money you re invest into the company, etc,etc.

lots of questions you need to ask before moving forward.

[EJD Lawnpride]

What kind of questions do you ask your lawyer or accountant?

[mmacsek]

LIABILITY!! The business is liable and not your personal assests if they are jointly owned. If Inc. and a subchapter S all profits pass through the corp. and taxed to the officers. You can also write off health insurance. Ask your accountant what the tax benefits are and your business attorney what liability protection you have with Inc. Matt

[EJD Lawnpride]

My accountant said that there really isn't any tax benefits other than having liability security. She said at my level it is more paper work and more money.

[causalitist]

from what i know it also seperates business money from your own money.

i THINK you only get taxed on the salary you draw from the business account.

not exactly sure how the money you leave "in the cooperation" gets taxed.

i had this bookmarked, not sure if its worth anything.
http://www.mycorporation.com/incorporate/

[bohiaa]

I have been confussed on this issue also.

My tax guy said most of the LCO's do a LLC. Now why this is I dont know.

however he did say that a corp cost a lot of money Jsut to do it and for me it would NOT be worth it. I'm at 100.000 in sales.

Most of waht I own is in the Business name. of corse just being a DBA. that really doesn't mean anything. "that I know of" it seems that if I got sued they could go after everything

[TSG]

In the early years it is easier and the tax situations better to be a sole prop and buy a more insurance.
Year 2 or 3, is when you should go S corp.
The difference between LLC and S corp is the tax benefits, and a GOOD CPA
can explain them. LLC's are great for real estate companies
Don't go through the expense of incorporating unless you know you are going to stay in the business.
Just .02

[Evan528]

My accountant said that there really isn't any tax benefits other than having liability security. She said at my level it is more paper work and more money.

My accountant said pretty much the same exact thing.

[lawnspecialties]

In general:

Sole-proprietorship treats you and the business as one. Both money-wise and laibility-wise.

LLC treats you and the business as one money-wise. Liability-wise you are seperate entities.

Incorporation treats you and your business as two, both money-wise and liability-wise.

I've been LLC for a year and a half since I knew I was going to be hiring employees. I now have two part-timers and it gives me great peace of mind. My trucks, equipment, and everything are now owned by the business but I own the business. I'm probably going to go back to solo next season but I'll still retain the liability protection my LLC gives me.:)

[EJD Lawnpride]

How much extra does it cost you yearly?

[lawnspecialties]

How much extra does it cost you yearly?

The state of NC charges me $200 annually. Other than that, really no more than when I was a sole proprietor.

[GraZZmaZter]

Honestly, if you own a house or any other major asset .... incorperating should be a consideration.

If an employee is out mowing and whips a rock into a childs eye and blinds him (no its not hypathetical - happened to a cat in this area a few years back) they can come after what YOU own as a sole proprietor ... if he would have been inc .. those assets would have been exempt from the fangs of prosecution.