incorporate?

[coolzone]

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

[Guest bigboyk2000]

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

good plan

[Guest Key West]

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.

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!!)