incorporate?

Any one have an opinion or experience with this, getting advise both ways,I gross about 90k ayear
thanx dudes! SO Cal area

Talk to an accountant and TAX lawyer.

Sometimes you have an advantage and sometimes it is a pain. Every business is different. I have a limited company.

I just incorporated to save some tax money. Now I am an employee and draw a reasonable salary. Any money left after that I take as a shareholder distribution. I do not pay self employment tax on the distributions so it ends up saving me money. It cost about $1200 to incorporate and is a pretty big pain in the butt because you need to get all new bank accounts.

yes I beleive in incorparating or setting up a llp
not only is there monetary gains but it helps with liability issues
as well

incorporate

tax benefits, especially if sole owner (you will own 100% of your own stock)
liabilities purposes, keeps your ass out of the fire if it comes down it

it is a pain in the ass, but well worth it if you work on expensive vehicles and/or do a large amount of work

My main business is incorporated due to liability, and I would get taxed out of my ass if it wasn't (it does just over 2 million a year)
another one of mine is a llc, for different purposes, then i have a couple dba's under them







and it sounds cool when you say you own a corporation, j/k

If your grossing that much per year I would definately go with some sort of incorporation to help save your personal assests from from sue happy AHole that might come along.

Cosult a CPA, they will be able to tell you what option is best for your situation.

WE are incorporated under one name and have a DBA (Doing Business As), for the other biz we operate.

wouldnt that be direct protection there mm

being incorporated keeps your ass out of a sling if someone wants to sue you for everything you have

i actually created a seperate company to "hold" my inventory prior to me selling it, that way if someone does actually try to sue my retail locations, all they would get would be a piece of paper with the company name on it and some displays, since the retail doesn't actually own the inventory

kinda sneaky, but it protects me at all angles, I did this because of the amount of inventory I keep on hand at all times

Incorporate Yes. its well worth the effort and cost involved. I did it back in 99, under my accountants advise and it was well worth it. My company is set up as a Closed Corporation or "C" Corp. and thanks to Mr. Bush we pay very little tax on the Profit that we do make at the end of the year. If you have an accountant already then great, but if you do not, then I strongly suggest retaining one, Developing a good relationship with him, and Take all the advise he has to give and use it wisely.

get some pro advice S type, C type

or like Al said LLC

cover your azz
this is a litigious society
waiting for a "settlement"

great thinking, I'm going to check that out for my shop! thanks

You can also lease your properties and vehicles, and anything the business has to the business. this way the business owns nothing.

LLC seems the way to go to me but I am just getting started and learning about this stuff too.

good plan

I went with an S type corp. Yes, It's a pain, but likecarwasher said, I pay myself as a consultant, (minimun) and the rest is shareholder distribution. There are capital gains on the distribution tho... But the corp itself has shown a loss for a long time. I did an offshore corp YEARS ago (caymans) and borrowed the money from there to start this corp. That corp "owns" all inventory and assets. I pay back the loan at a prime interest rate, which is deductible, then keep borrowing money from offshore, and keep paing it back at prime rates!! All perfectly legal according to my accountant!! Never been audited yet, but then again, thats why I pay an accountant/CPA!!
If yer grossing that much, yer pretty well established and need at least a CPA. As far as yu NOT being incorporated, you leave yourself at tremendous personal liability, should the unthinkable occur (read the Horror Stories, they DO occur!!)