Incorporate??

Discussion in 'Business Operations' started by Field General, Mar 15, 2004.

  1. Field General

    Field General LawnSite Member
    Posts: 132

    Incorporate....at what point did you guys decide to incorporate?
    I have been considering incorporation, but do not know how to proceed.

    Any help would be nice.I live in Ohio. I know there are different types of corporations and llc's. Which route is best. Did anyone do the paperwork themselves or did they use a lawyer or accountant.

    Thanks again.
     
  2. James Cormier

    James Cormier LawnSite Bronze Member
    from Ma
    Posts: 1,218

    Every year I ask my accountant if its time, i go on thursday so I will let you know what he thinks.

    he as always told me if your doing less than 500k a year its theres no tax advantages.

    My lawyer always tells me do it only for tax advantages, too many people have false proctection hopes with incorpating.

    So the 2 people I pay alot of money to for advise tells me no.
     
  3. TSM

    TSM LawnSite Senior Member
    from MA
    Posts: 711

    "too many people have false proctection hopes with incorpating."

    I agree. Want to be protected? Buy insurance.
     
  4. dougaustreim

    dougaustreim LawnSite Senior Member
    Posts: 488

    The protection things certainly is a myth. Until one gets very large and has multiple stockholders, there is no protection. Most banks and other credit grantors will ask for personal guarantees.

    Any judgements, tax problems, any type of legal situation they will go after the responsible person individually.

    Doug
    Austreim Landscaping
     
  5. Tscape

    Tscape LawnSite Bronze Member
    Posts: 1,372

    Ask any millionaire when they incoporated and I bet they say, "very early." It is a taxation matter.
     
  6. Field General

    Field General LawnSite Member
    Posts: 132

    The man who does my taxes once eluded to that if I were to incorporate I could legally pay all the officers in the corporation.
    The payment would be before taxes and could be as high as $800 each. The officers could be all family members. He then offered to do all the paperwork for a fee. It just got me to thinking
    what other advantages there might be.

    Does anyone know of a website or a publication that addresses the benefits of incorporation? i'm still looking.

    thanks again
     
  7. TSM

    TSM LawnSite Senior Member
    from MA
    Posts: 711

  8. tennissippi

    tennissippi LawnSite Member
    from zone 7b
    Posts: 77

    I am an LLC and I could not imagine operating a business without it or a good insurance policy. Hence, the word LIMITED LIABILITY. In other words, the lawsuit (if any) are limited to the company and not the individual. Dont get me wrong..neglect is neglect no matter how you slice it, but being a corporation LIMITS the potential of someone suing the individual. And even that is not ALWAYS a guarentee. However, I would be willing to bet 9 out of 10 times it will.

    Now to taxes. You are going to pay the same 15% in self-employment taxes and the same income taxes regardless. There is a wide misconception that you are going to pay more taxes and get less tax incentives by being a corporation...this is false! If you want to pay less in taxes than have a few cash accounts off the books.

    My two cents.
     
  9. Tscape

    Tscape LawnSite Bronze Member
    Posts: 1,372

    LLC= less tax liability.
     
  10. T.E.

    T.E. LawnSite Senior Member
    Posts: 799

    You know this info about the self employment tax is confusing to me. My tax person told me not three weeks ago that if I went LLC I wouldn't have to pay the self employment tax! I think somebody is wrong! Time to find a knew tax lady. Tony
     

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