on- line incorporating service?

Discussion in 'Business Operations' started by miketina, Jan 25, 2006.

  1. miketina

    miketina LawnSite Member
    Messages: 55

    Hello all,
    I was wondering if anyone has used one of these services and how it turned out. A lawyer wants to charge $1000 to set us up as a corporation, which I think is ridiculous since I found the service on line for $200. Any feedback woulld be appreciated.
  2. K.Carothers

    K.Carothers LawnSite Bronze Member
    Messages: 1,124

    I don't know about the on line deal. My CPA charges $750 for a LLC. I like to have someone in person that I can talk with anytime I have a question. A good CPA is worth every penny.

  3. turf dog

    turf dog LawnSite Member
    Messages: 108

    I would use a lawyer. Try to trade services. If your are incorporating for tax purposes or liability reasons? When you incorporate for it to be legit you have to have yearly stockholder meetings and keep minutes, even if it is yourself. If you were to get sued they can subpoena your corporate records. If you have not been doing that, the corp is not recognized as being legit and the liability falls on you personally. So in short when setting up a corp make sure you do it right.
  4. miketina

    miketina LawnSite Member
    Messages: 55

    I know the advantages for liability, which is why we want to incorporate, but is there tax advantage? If there is, what are they? Thanks for the idea Turfdog, will try the swapping services idea.
  5. mr.we.mow.grass

    mr.we.mow.grass LawnSite Member
    Messages: 47

    My lawyer charged me $180 to set it up and $50 for the state fee (Mississippi) I would shop around.
  6. turf dog

    turf dog LawnSite Member
    Messages: 108

    The tax advantage of a Sub Chapter S corp is that you can pay yourself a salary. The salary is taxed at your personal tax rate plus FICA. The rest of the money in your Corp you can pass thru as a distribution and you only have to pay your income tax rate. When you are a sole properitar you have to pay income tax and self employment tax which is FICA. This is were a CPA comes in handy. They can help you set your salary. If you set your salary way to low the irs:gunsfirin might get a little upset.
  7. AintNoFun

    AintNoFun LawnSite Bronze Member
    Messages: 1,807

    when i first started my local SBA small biz center did all the paperwork for me all i had to pay was the state filling fees.. but now i think our lawyer charges like $300 + fees for each of the LLC's we did....

    RRHAMMONS LawnSite Member
    Messages: 142

    You are correct, the IRS would be upset!
  9. nherweck

    nherweck LawnSite Senior Member
    Messages: 326

    I've always thought that the only dumb questions are the questions not asked...so here it is! What is a CPA? I've seen CPA in MANY threads on this site, but I'm clueless to what it is. Thanks!
  10. K.Carothers

    K.Carothers LawnSite Bronze Member
    Messages: 1,124

    No such thing as a dump question. That's how we all learn.

    CPA- Certified Public Accountant


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