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#154923 - 11/26/04 04:20 PM Benefits of one man corporation
Electricmanscott Offline
Member
Registered: 01/12/02
Posts: 1457
Loc: Holden, MA USA
Another thread has me wondering. What would the benefits and drawbacks be if I were to incorporate myself. Also what does it cost to go from sole proprietor to One Guy Inc?
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#154924 - 11/26/04 04:47 PM Re: Benefits of one man corporation
Megawatt Offline
Member
Registered: 03/11/04
Posts: 76
Loc: Lexington,Ky, USA
For Me, the best situation was to become an LLC. This gives You the benefits of a Corp, without all the required annual meetings, minutes of meetings etc. While protecting Your personal assets.
You can still choose the way You will be taxed. Either a "C" or "S" corp.
In My opinion, the S type will be the best for a One Man Show.
Also remember....the IRS says that You must pay Yourself a "resonable" salary. But doesn't define what that may be...
I try to take as little as possible as salary, & take the balance as dividends, this allows Me to avoid paying the 15% Social Security on that money !!
Just some ideas, that work well for Me.
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#154925 - 11/26/04 04:53 PM Re: Benefits of one man corporation
shortcircuit Offline
Member
Registered: 06/27/04
Posts: 608
Loc: massachusetts
It may be more expensive for a One Man Operation to Inc. Yourself...I did it because I have employees and real estate and wanted to seperate my personal life from the business activities...for liability reasons as much as I legally could. The cost was about $1500 and there are also annual fees.I structured as a s-corp.

I found the book "Inc. Yourself" by Judith H. Mcquown helpfull (9th edition)...on Amazon books...make sure you buy current versions as tax laws change often...and always seek professional advise from your accountant.

shortcircuit
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#154926 - 11/27/04 03:32 PM Re: Benefits of one man corporation
Active 1 Offline
Member
Registered: 02/22/03
Posts: 687
Loc: Grayslake IL, USA
For gun colectors I have read a number of things of corporate gun ownership and loopholes:

"In some areas it is difficult to get a law enforcement signature on the ATF Form 4. To circumvent this problem, some people purchase the gun through a corporation. If you are a SOT payer acquiring a firearm from a private source, or if you are a private individual who is incorporated or is a senior officer in a corporation, you can acquire an NFA firearm on an ATF Form 4 without the need for a law enforcement endorsement, photograph, or fingerprint card. You still must pay the Federal Transfer Tax. If the gun is transferred to a corporation, it must be retained by the corporation until it is dissolved. At such time the gun must be sold on a tax paid transfer, retitled to someone on a tax paid transfer, or surrendered to the BATF."
http://www.funsupply.com/Firearms/corp.html

Of corse state laws still apply.
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