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Should a consultant company become Inc.

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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To Inc. or not to Inc.?

by GA-Pilot In reply to Should a consultant compa ...

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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FYI

by lisam In reply to Should a consultant compa ...

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 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

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liability

by lookwoebegone In reply to Should a consultant compa ...

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.

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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

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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.

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I just wanted to.....

by ippirate In reply to Should a consultant compa ...

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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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.

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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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