General discussion
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August 14, 2000 at 5:43 am #2083565
Should a consultant company become Inc.
Lockedby jjoeclark · about 23 years, 7 months ago
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.Topic is locked -
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August 14, 2000 at 6:02 am #3769006
To Inc. or not to Inc.?
by ga-pilot · about 23 years, 7 months ago
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.
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August 14, 2000 at 7:06 am #3768982
FYI
by lisam · about 23 years, 7 months ago
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 -
August 14, 2000 at 7:16 am #3768972
liability
by lookwoebegone · about 23 years, 7 months ago
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.-
August 14, 2000 at 8:00 am #3768949
Becoming a Corporation
by avrom · about 23 years, 7 months ago
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
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June 9, 2005 at 12:35 pm #3192569
Depends on assets and value
by jdclyde · about 18 years, 9 months ago
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.
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June 9, 2005 at 11:31 am #3192626
I just wanted to…..
by ippirate · about 18 years, 9 months ago
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….
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June 9, 2005 at 11:33 am #3192622
you’re so weird
by itgirli · about 18 years, 9 months ago
In reply to I just wanted to…..
But I guess you got your wish. I wouldn’t Inc. if I could.
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June 9, 2005 at 12:23 pm #3192575
I don’t get that
by ippirate · about 18 years, 9 months ago
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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