Incorporate??

Field General

LawnSite Member
Location
northeast ohio
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.
 

James Cormier

LawnSite Bronze Member
Location
Ma
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.
 

TSM

LawnSite Senior Member
Location
MA
"too many people have false proctection hopes with incorpating."

I agree. Want to be protected? Buy insurance.
 

dougaustreim

LawnSite Senior Member
Location
Brookings SD
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
 
OP
Field General

Field General

LawnSite Member
Location
northeast ohio
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
 

tennissippi

LawnSite Member
Location
zone 7b
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.
 

T.E.

LawnSite Senior Member
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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