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View Full Version : Incorporating Yes or No are you?


eggy
08-12-2000, 12:35 AM
I have been oing back and fourth about pros and cons of incorporating and was wondering how many of you are incorporated, and your thoughts..pros and cons THANKS!

Guido
08-12-2000, 09:26 PM
Wanted to bring this back to the top because I'd be intrested in learning more about the differences,pros, cons, etc of incorporating your business.


Thanks in advance Guys!

Evan528
08-12-2000, 10:44 PM
I am thinking about becoming incorperated my self. From what i understand it gives you leagal protection against lawsuits so they cant ake any of your personal property. It only costs a few hundread bucks do it seem well worth it to me.

machine
08-12-2000, 11:23 PM
Incorporation is great subject that should be explored in more detail in this forum. All of us who plan to succeed in business need to step up from the sole properitor and parntership enties to a Corporation. But Which Corporate entity is the best S-Corp, C-Corp, LLC or other? I was suprised at some of the Replies, when I posted a similar question, "Hire an Accountant, Contact an Attoney!" I thought we could have a educated dicussion on the pro and cons of becoming Inc. Many of us who vist this site have backgrounds in Accounting, Finnance, & Law, as well the most important, street sense. If You got a problem with an engine, I am not going to tell you to hire a mechanic. I am going to tell you the best possible solution I know. It might work or it might not, but at least your getting an opinion of someone who has been in the same situation many of times. Remember this: "AS IRON SHARPENS IRON, SO ONE MAN SPARPENS ANOTHER"

WALKERMOW
08-12-2000, 11:39 PM
INCORPORATION HELPED ME THE FIRST YEAR..THE PRIOR YEAR I PAID $3,000 IN INCOME TAXES..LAST YEAR I PAID $800..IT COST ME $600 TO INC.SO I WOULD SAY IT IS WORTH IT..IT ALSO PROTTECTS YOUR PERSONAL PROPERTY FROM LAW SUITS..YOU ALSO BECOME AN EMPLOYEE AND HAVE TO PAY YOURSELF A SALARY ..I HAVE NEVER WROTE MYSELF A CHECK UNTIL I INC.ED
I KNOW ALL OF YOU HAVE LEGIT BUSINESS SO NO MORE
BUSINESS/PERSONAL CHECKBOOKS, THEY HAVE TO BE SEPARATE NOW.
JUST A SMALL PRICE TO PAY TO SAVE 12.5% ON SOCIAL SEC TAXES. HOPE THIS ANSWERED SOME QUESTIONS.



HOPE YA'LL HAVE A GREAT SUNDAY..TAKE YOUR FAMILY TO CHURCH

RUSTY

bob
08-12-2000, 11:39 PM
No, my CPA advised against it.

machine
08-12-2000, 11:44 PM
Here are Some Questions & Comments to get the topic going?

Where do you Incorproate? Delaware, Liberia, or your own State.

Evan528, thinking of being a Proffesional Corporation? Landscapers are as much as Proffesional as Dotors and thier Incorporated. Why not a C-Corp if you plan on having employee's?

Ever See the Corporate Office of a Nork york City Cab Driver? All of his Corporate Assests are in the glove box. All of one dollar.

machine
08-13-2000, 12:05 AM
Bob, Your CPA Advised against becoming Incorporated! For what reasons? Don't you want to protect your personal assests, Your Wife's, Your Kid's, Your Grandparent's, all your relatives?

Runing a Corportation places a hell-of-alot more paper work and Proffesional Responsiblity on the Accountant. Hell, if I was your Accountant I would say the same thing. I hope your not paying it to sit on its ass all day play sex games on the internet.

WALKERMOW, "You Got the ticket" Is isn't Double Taxation Great!!!!!

JML
08-13-2000, 12:55 AM
The SBA through a local community college formed my S-corp for free, just had to pay the state fees in NJ, like $115. Nowadays people will still try to sue you even if you have a corportion. Just get business insurance 2 million dollars will cover a lot of damage so you don't have to worry about your wife, kids, grandparents..

thelawnguy
08-13-2000, 03:12 PM
"INCORPORATION HELPED ME THE FIRST YEAR..THE PRIOR YEAR I PAID $3,000 IN
INCOME TAXES..LAST YEAR I PAID $800..IT COST ME $600 TO INC.SO I WOULD SAY IT IS
WORTH IT..IT ALSO PROTTECTS YOUR PERSONAL PROPERTY FROM LAW SUITS..YOU
ALSO BECOME AN EMPLOYEE AND HAVE TO PAY YOURSELF A SALARY ..I HAVE
NEVER WROTE MYSELF A CHECK UNTIL I INC.ED
I KNOW ALL OF YOU HAVE LEGIT BUSINESS SO NO MORE
BUSINESS/PERSONAL CHECKBOOKS, THEY HAVE TO BE SEPARATE NOW.
JUST A SMALL PRICE TO PAY TO SAVE 12.5% ON SOCIAL SEC TAXES. HOPE THIS
ANSWERED SOME QUESTIONS. "

So you're saying you didnt have to pay income taxes on your salary? Who paid your SS tax and medicare? Seems like its the same pair of pants just different pockets. And dont believe for a second that incorporation will protect your assets in case of a lawsuit. If you are the owner you are going down, incorporated or not. Ask a trial lawyer about this, not your accountant.

eslawns
08-14-2000, 01:22 AM
Incorporation is a way for lawyers and CPA\'s to make more $$$. It will NOT protect your personal property from anything in which you are directly involved. If you run over someone\'s kid with a lawn mower, they can come after YOU! It will protect you from things your employees do. I only have 1 PT guy, so it wouldn\'t benefit me, just cost me $$$. Talk to a lawyer AND a CPA. The $$$ might be better spent on more public liability insurance

Lazer
08-14-2000, 10:00 AM
Boy is this a sorry thread.

My business is incorporated.

A corporation sets up a separate identity which you conduct your business. You become an employee. If you incur a CIVIL liability within your business, your business is responsible, not you as an owner or employee.

When sued, a properly written contract will have your suit against your corporation and it's assets. Your personal assets are protected because you personally are a separate entity.

No lawn company with 4 or less owners should be a C-Corp, S-Corp or LLC are the way to go.

I would recommend all business be incorporated form the time they hire their 1st employee.

Evan528
08-14-2000, 01:58 PM
thank you lazer! you always save the day!

Grasscape Inc
08-14-2000, 11:50 PM
I agree with Lazer. But get also get liability insurance. About 1 million should do.