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Inc....

Discussion in 'Business Operations' started by yardboyltd, Feb 7, 2003.

  1. yardboyltd

    yardboyltd LawnSite Senior Member
    Posts: 323

    I'm want'n to incorporate.. It's only 75 in kansas and I'm look'n at the form off the SoS's website on my own. This form is relatively easy I just wonder'n if anyone can answer my questions without get'n legal advice.

    FYI: Heres the form I'm using
    http://www.kssos.org/forms/cf.pdf

    1)What types of values do I put on stock? and how many?
    2)Do I need to adopt bylaws?
    3)The form doesn't ask s or c-corp... do they need to know i want to be s-corp?
     
  2. yardboyltd

    yardboyltd LawnSite Senior Member
    Posts: 323

    okay i'm gona answer some of my own questions after brows'n the net...

    2)bylaws is only an internal document... buy a corporate kit
    3)file form IRS 2553 to elect subchapter status

    I'm stil try'n to figure out putting a value on the shares.
    Oh hey btw: This past year as a sole proprioter I bought $7000 ZTR, at my level of business, it was a huge purchase.. if I write all of it off this year I will have next to nill income taxes(SE is avoided). Now if I incorporate, I plan on the Corp buying the mower from me... THen couldn't the corp write off the mower at a depreciated value... while I personally just pay income tax on the amount the corp pays to me and I don't have to pay Self employment on sell'n the mower right?
     
  3. devildog

    devildog LawnSite Senior Member
    from sc
    Posts: 270

    See your accountant, consult with a Lawyer of his suggestion. With Regards... devildog
     
  4. Equipguy

    Equipguy LawnSite Senior Member
    Posts: 370

    Some times you can get free advice or counseling at the SBA or through a local university. Maybe worth cking out.
     
  5. Precision Care

    Precision Care LawnSite Member
    from Indiana
    Posts: 28

    I can only tell you what I did, LLC. But I applied to be taxed as a corp. with the IRS so I would not have to pay self employment taxes. Most attornies will tell you LLC is the way to go. Most accountants will say INC. But you can have the best of both worlds.
    Jeff
     
  6. dougaustreim

    dougaustreim LawnSite Senior Member
    Posts: 488

    When all is said and done, there really isn't that much tax savings to incorporate. Once you take the money home for yourself, it will get taxed. Also as you get closer to retiring like I am, you begin to realize that saving money on SS tax reduces the amount of SS you get to draw when you retire. If you find ways to avoid SS tax, make sure you invest that money somewhere else so that it builds for your retirement'

    The other reason you are told to incorporate is to insulate your personal assetts from the buisiness. Unless you have a corporation that is well established and has a large net worth of its own, you really can't separate anyway. Most creditors will insist on personal guarantees anyway for any newer smaller company. The same goes for taxes. As the owner or officer of the corporation, you are personally responsible for all those things anyway.


    Doug
    Austreim Landscaping
     
  7. yardboyltd

    yardboyltd LawnSite Senior Member
    Posts: 323

    I understand the whole inc benefits vs disadvantages.. spare me.
    I have a friend who is a lawyer. One night while conversing with him, he said I should go LLC or s-corp, preferabbly LLC simply bc less paperwork. However s-corp is cheaper here to register. Anyways next time I'll see him I'll ask.. I just figured maybe someone on here knew about figuring shares and values. Also, I kinda feel like should be pay'n him for his legal advice.. but idk.
     
  8. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    Get an accountant!! They will do all of it for you... the RIGHT way. There is a LOT more than just incorporating.
     
  9. yardboyltd

    yardboyltd LawnSite Senior Member
    Posts: 323

    well i've decided to go LLC now... 75 more but I figure thats my time doing my "directors and shareholders meetings" lol. Everything an accountant knows can be found on the web... Not only can you save your self accounting fees but also learn the law inside out to maximize savings in the field.
     
  10. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    Well i guess you didn't know there are legal ways around corporate meetings, other than going LLC. Oh well... to each ther own!
     

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