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  #1  
Old 01-25-2003, 11:54 PM
Schlepie Schlepie is offline
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Location: New Braunfels, Texas
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incorporated?

I have had so many business people and friends tell me " ya need to be incorporated, so if they sue ya , they can't sue you personally." Fact or Fiction?
How many of you guys solo or even with one or two employees, are Inc. or LLC'd?

Schlep
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  #2  
Old 01-26-2003, 12:42 AM
Darb Darb is offline
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It does help protect you to some extent. My understanding is when you incorporate the business in a way becomes a legal entity (which is why when you incorporate you just can't quit and walk away like you can with some of the other forms of businesses). This entity acts as a barrier for you ... The protection is not foolproof. If you knew you were doing something you shouldn't have been doing then you are open to litigation. I recommend you contact a lawyer... they can give you all the ends and outs.
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Old 01-26-2003, 10:00 AM
John Allin John Allin is offline
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The biggest question to be answered (IMO) is - do you have anything that needs protected ??

If you have no real assets (personally), or all your assets are tied up in the business - then the need to be incorporated isn't that great. It's when you have something to protect that the need becomes paramount. If you have already protected those personal assets in some fashion, then the need drops dramatically.

Lawyers will all tell you "incorporate NOW". Of course, they charge for this service. A better person to ask is a wise accountant.
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  #4  
Old 01-26-2003, 12:25 PM
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tiedeman tiedeman is offline
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I would personally go with a LLC. I am going to do that this spring. Cost about $800 to do it. I am just worried that some sue happy person will take my property as well. You can never be to careful with the people that are out there today.
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Old 01-26-2003, 12:39 PM
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strickdad strickdad is offline
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i agree with john to a great degree, there are alot of downsides to being inc. this day and time. (alot of extra paper work) very hard to get any type of credit in a s corps name. as far as being sued, its like john said, were are all of your assets? at home or in the biz? your best defense here is alot of insurance. in my oppinon you need no less than 1 millon. we have more plus a "umbrella" 20 years ago we incorperated and there was a "distinct" advantage then as far as taxes, that advantage is not as distinct now. like john said talk to an accountant..
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  #6  
Old 01-29-2003, 01:07 PM
KirbyKLC KirbyKLC is offline
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Location: Central Florida
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$800.00 for LLC?????

That is a TON of money to form LLC.


Go to www.bizfilings.com I did my LLC thru them, was done in less than 2 weeks and cost only $260.00. Keep in mind that you will probably have to change your business licenses, bank accounts, etc., which may have some minimal costs.

I just checked the cost for your state of TEXAS, (home of our Prez), and you can get it done for $355 basic or $535 for the "deluxe" package. Mine was the basic.


Hope this helps!!!

P.S. there are others out there besides this company. Just do a search.
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  #7  
Old 01-29-2003, 02:54 PM
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tiedeman tiedeman is offline
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Every state varies with the cost though...the $800 covered attorneys fee and everthing
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Old 01-29-2003, 03:04 PM
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bob bob is offline
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My accountant advised me against getting incorporated. He said that he charges a lot more for doing taxes and it really wouldn't help me to be incorporated.
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  #9  
Old 01-29-2003, 07:41 PM
jay warner jay warner is offline
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It has it's benefits. If you make good money, have several employees, and all that other jazz, then I'd say do it. Solo's nah, give it a while.
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  #10  
Old 01-29-2003, 08:24 PM
Randy Scott Randy Scott is offline
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I feel pretty good about the cost in Wisconsin to become an LLC. I did it last week online. The state has a website for this. Enter the necessary credentials, they do a search and advise you in a couple days. Turned out my company name was available to me, figured it was, and $130 later we are now LLC. That simple. No need for an overpriced attorney. I would imagine the process will vary state to state, like everything else.
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