View Full Version : To Inc or Not to inc
02-07-2005, 03:33 PM
That really isn't the question....LOL. Anyway, I run my business as a sole-proprietership. I keep all my business and personal finances as far away from each other as possible. Now for the question..... I am getting married in a few weeks, and in order to protect HER assets as well as mine if I were to get sued...I am thinking of incorporating. I can do it online for a few hundred bucks. My accountant said that an S-corp election was the way to go. Anyone else go that route, by online incorporating, I mean? I don't have that complicated of a business structure so I don't feel the need to spend 2 grand to incorporate with a lawyer. Lets hear what everyone has to say..
02-07-2005, 03:38 PM
Oh No Not Again!
This subject has been beaten to death over the last couple of weeks.
If you feel that this is the right choice and you have seeked the advice of a good CPA then by all means go for it. I don't think that you will lose anything by Incorporating your business. Just make sure that you do go S-Corp.
I am sure that you will get hammered just for posting this question.
Some will disagree and tell you that it is a big mistake.
Follow the advice you get from your accountant as he knows best. :waving:
02-07-2005, 03:49 PM
Yes, obviously seeking professional advice will be best. You're a sole-prop now. You aren't safe from anything, and when your girlfriend becomes your wife, her stuff won't be safe either. As a sole prop you have most likely been using your name for everything.
As a sole prop and married your taxes are combined and recorded together. They are separate line items on your taxes, but her income will be lumped together with you and the business. We've had two different accountants and both are singing the same tune here in Wisconsin. Maybe your state is different, not sure on that.
This year we are going s-corp. Our new accountant told us why and it makes perfect sense, hence the reason for wanting to get rid of our old one. I'm no accountant, but they never really made me feel to sure about themselves.
Anyways, seek the advice from a professional CPA. It wouldn't hurt to have meetings with a couple and compare notes. Their initial consultations are free just like we do free estimates. Will be the best thing you could do for your business. Besides, an accountant can help you incorporate.
02-07-2005, 04:00 PM
Check with an attorney. I would think that any property owned by your future wife is hers. I just incorporated with an attorney and he told me nothing is really safe in a lawsuit, even if you are incorporated, especially a one man show. If you kill someone, and their family sues, and the is a 21" mower and a trailer listed under corp. assets, you can bet they will be coming after you. He told me to have a good (at least $1,000,000) liability policy to help protect against this happening.
02-07-2005, 04:00 PM
We are in the process of becoming an S-Corp. We decided on the S-Corp because it will provide us with the most personal protection and reduce our taxes.
plateau lawn care
02-07-2005, 07:20 PM
like marko said anyone can still sue you, it may be harder for them to get more stuff though and also they can civil sue the owner of the company but most likely they will just take mill$$$ and run. I INC. this 2004 year dont know what it will do for my taxes this year i'll find out in about a week.
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