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#156049 03/10/05 08:26 AM
Joined: Oct 2003
Posts: 259
J
Member
Even if you own nothing and have no money, doing business you should be inc or llc which ever is best for you.
If something happened on a job couldn't you be made to pay for the rest of your life if you can't pay the judgement?

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#156050 03/10/05 08:28 AM
Joined: Jul 2004
Posts: 272
A
Member
Here's some info on business entities. http://www.quick-inc.com/guide/Business_Entities.pdf

#156051 03/10/05 11:36 AM
Joined: Mar 2005
Posts: 53
H
Member
I myself used a accounant to become a S-Corp. did it 10 years ago, has worked out very well for doing all my side work and wife does things that make money also. you can do several lines of work under one NAME not just a electrical bus. I sujest you talk to a accountant, here in Colorado it cost $125 to set up and the accountant did it.

#156052 03/13/05 04:33 AM
Joined: Jun 2004
Posts: 613
S
Member
denny...An s-corp is not taxed twice as you have described, all profits at the end of a year of an S-Corp are taxed at the owners tax bracket. One advantage of an S-Corp is the ability to take "disbursements" of profit thru the year that are not subject to social security and medicare tax.But these disbursements can't be larger than the pay you take from the corp. or the IRS could reclassify them and come after you for taxes owed plus interest,etc.

A C-Corp's profit is taxed at the end of a year and then again when an owner pays himself, which is a form of double taxation. C-corp is for a larger company with large profits in my opinion.

I don't know much about LLC's, but think they were originally designed for partnerships.Most states now allow one owner LLC's.

As far as corporations totally excuseing you personnaly for liabilty....that depends. My attorney says a corp is just another "bump" in the road to your assets if you are sued. For instance, if you are negligent on an installation that causes property damage or personal injury, its possible for a savvy attorney to sue the corp. and you.

I Inc. myself mostly for protection from employees possible mistakes, and for the disbursement advantage. If I were wiring alone, I would go back to being a sole proprieter and avoid the yearly Inc. fees and the added Inc. paperwork.

I got a book on Amazon called "INC. Yourself" by Judith H. Mcquown that was very helpful in my decision to INC. myself.

shortcircuit

#156053 03/13/05 12:40 PM
Joined: Apr 2004
Posts: 30
C
Member
I have also been looking into going with LLC. I got what looks like some pretty decent software from nolo.com(law for everyone) for $69.95. It looks like there may be a bit more to it than just filing the form with the state, if you want the protection that an LLC can give you. I'm referring to articles of organization (I think that's what it's called). I don't think you have to file this in most states but it looks like it's a good idea. I guess I'm still considering getting an attorney though. Anyone else familiar with this software or nolo.com?

#156054 03/13/05 09:24 PM
Joined: Oct 2004
Posts: 14
W
Member
cvelectric,
Check with your states Secretary of State website, or their department of licensing website. I live in Washington State and incorporating was as simple as filling in the blank form online and paying the fee online. And they have a step by step list for starting a business, including the federal needs. The state incorporates you not the feds. However you must become a C-Corp first. Then send in a declaratiion by the end of march to be an S-Corp. It easy!
Also check my post in this forum; Why pay all that tax with a LLC.

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