View Full Version : Should I incorporate???
10-21-2004, 02:25 PM
I am a one-man operation, one year in business. I have insurance and a business license for my state. I had a very good year, thanks in part to all the great advice I got from the members on this site. Now I'm trying to decide if I should just register my business name with the state or go ahead and incorporate, Sub-chapter S.
Is there any real advantage to being incorporated? I have been told that it would just open a “Pandora’s box” at tax time.
Any advice would be appreciated. :confused:
10-21-2004, 02:40 PM
Incorporating will give you more protection from liability, personally. It will separate yourself from your business, legally. Taxwise, from talking to an accountant, incoporating can benefit you depending on how much money the business is taking in. Of course, it does make things more complicated come tax-time.
Best advice would be to discuss the pros and cons with an accountant before you decide.
10-21-2004, 03:02 PM
We are planning on going full time next year and spoke with our CPA just yesterday about the topic of best structure for business (S.P., LLC, Sub-s corp) Hoolie is right it will provide much more seperation between you and your business. CPA told us we would have to register every year with state at about $50 per year, isuue stock certificates (to ourselves), assume titles (Pres./CEO, V.P., etc.). He explained that in the event you are doing quite well from a financial standpoint you will benefit more monetarily than the other two structures(S.P.& LLC) in that you pay yourself a reasonable salary and yet are still able to collect dividends. Anyway you may want to consider two things: Talking with your CPA and check out the Federal I.R.S. website, not neccessarily in that order. I found the I.R.S. website to hold a lot of helpful info on business structure.
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