PROS & CONS of Incorporation

[Likestomow]

Okay, here's a list to keep this subject on track:

1. What type corp do you recommend?
(OR why do you say not to incorporate?)

2. What are the benefits you find from this type corp?
(go ahead… be detailed)

3. What are the disadvantages of incorporation?

4. What software(if any) did/do you use to incorporate/keep minutes?

I have done a "search" on this subject, but thought it would be good to hear some additional comments from all the new people in attendance now.

[chrisbolte]

LLC or a s corp would be best for our industry. S corp doesnt get double taxes. Also many other benifits. Talk to accountant to get exact details. It depends on size of business. Biggest advantage limited liability. Disadvantage cost up front more paperwork. I would suggest trying to do it in the winter.

[Skookum]

I agree. Talk to an accountant that you trust or ask around for a good one that knows what they are doing. Many are just nothing more than tax filers. A lawyer might better answer the liability questions.

Biggest advantage: Liability limits you away from the company.

Disadvantage: More paperwork, more expense, harder to do your own taxes, loss of "business use of home" on tax returns (if you work out of home).

My opinion: If you have employees - incorporate; Just you - sole-proprietor

[chrisbolte]

I agree if you are one man operation sole propritor. But if you have been reading other threads and heard about how the one guys employee got his finger cut off that is where a corporation will save you!