General discussion

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  • #2083565

    Should a consultant company become Inc.

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    by jjoeclark ·

    When is it necessary to make yourself a Inc. company.
    What are the tax breaks,
    If your the only employee,
    What are the fee’s ,and is it worth it.
    Anyone with ideas on this subject, I would appreciate your insight.

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    • #3769006

      To Inc. or not to Inc.?

      by ga-pilot ·

      In reply to Should a consultant company become Inc.

      I’m no expert by any means, but the primary reason, I’ve always been told to Inc., is when you have personal assets, that you need to shield from your professional assets and activities.

      The potential for liability from your professional activity, can quickly erode your personal assets, if you were to be sued under an error and omissions type of mistake/error in judgement, etc. There is also insurance for this type of protection as well..

      T.

    • #3768982

      FYI

      by lisam ·

      In reply to Should a consultant company become Inc.

      I am not a lawyer and would recommend you discuss it with yours first. We decided to become Incorporated to protect my family assets in case of any legal issues. For me it was worth the $$$ to be sure I am protected. Yes, there are instances thatthe corporate vail can be pierced but it is rare. We used The Corporation Company @ (800)877-4224 or on line at http://www.CorporationCompany.com and paid under $500.00. It was set up in less than 3 weeks and in Calif they are waiving the min taxed for the first 2 years. I would recommend an S corp so that you are paying taxes on the personal % and not a full C corp where you commit to minimums, etc. I prefer the S corp to a LLC, etc. I have also known people to take it a step further and do a Full Corp for the main company and then an S corp for each seperate division so that if 1 is attacked the others do not go down. I would only recommend this if you are handling more than 1 type of product/service.

      Just my 2 cents.
      Lisa

    • #3768972

      liability

      by lookwoebegone ·

      In reply to Should a consultant company become Inc.

      if for no other reason, incorporation in most
      states will limit your personal liability.
      incorporation shows a higher level of business sence and is worth the moderate cost.

      • #3768949

        Becoming a Corporation

        by avrom ·

        In reply to liability

        I a previos business owner would highly recommend an LLC over a Corporation. You may should consult with a lawyer, before making a final decision. But it is a fact that Corporations are more complex and the Corporate vail has been penetrated, the L.L.C. does offer you more protection.

        Avrom

        • #3192569

          Depends on assets and value

          by jdclyde ·

          In reply to Becoming a Corporation

          Do you have a lot to lose if you get sued?

          Are you doing something that is likely to hold you responsible for damages?

          You lose a LOT of money once you change from single owner small business!

          Talk to that tax lawyer. I just play one in my nightmares.

    • #3192626

      I just wanted to…..

      by ippirate ·

      In reply to Should a consultant company become Inc.

      Practice my necromancy. Plus, I thought it would be really cool to see this ancient thread appear at the top of the list, if even for a brief moment….

      • #3192622

        you’re so weird

        by itgirli ·

        In reply to I just wanted to…..

        But I guess you got your wish. I wouldn’t Inc. if I could.

        • #3192575

          I don’t get that

          by ippirate ·

          In reply to you’re so weird

          I’m bored to death today and posted to this for a little amusement. Why do I have to be weird. Why not eccentric or individualistic? 😀

          One man shop. Slow day. Bored. Entertainment needed. Bad combination.

          Besides, you have to admit, it was somewhat funny, the whole necromancy bit…

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