To Incorporate or Not to Incorpate

[RayeKaye]

I don't think this question has been posted on the board yet (if it has, I apologize - could you provide me with a link?).I was wondering if anyone here has incorporated their business and would you mind sharing your thoughts/advice/concerns? If you've not incorporated, what decided it for you?TIA

 

[JamesHenderson]

The upside -  potential tax benefits of being an employee of your own Corp., creates an umbrella for various ventures.The downside - one time lawyer fee, your state/city may make accounting a little trickier, annual/bi-annual filing with the state/city.It is essential for our business.

 

[The "L" Word]

I began my practice as an Inc. (S-Corp)because at the time I thought it was to my best interest.  Since then the annal fee for being incorporated has gone from $250.00 to $500.00.  I also like the protection of knowing I cannot be sued for my personal assets.  Being Inc. they would like for you to be an acctual employee and take a payroll which means more tax filings.  And if you live in a state that requires workmans comp insurance then your looking at $450.00 additional per year.  I have not done this yet, as I feel I am still building my business.  When my accountant says it is time, then I will.  Until then I take an owners draw and will pay taxes on it when I file for the year.  You may want to look into an LLC.  Some community colleges have small business centers which offer seminars on the different types of ownerships, their pros and cons, and will even set you up for a nominal fee.  I am in NJ and paid just the filing fees in starting up my business which was under $150.00.  Contact your local small business association, perhaps they may be able to help.  Good luck.C.    

 

[fmko ( ??????????????)]

To Incorporate or Not to Incorpate

FYI - owners are exempt from worker's comp costs.They only apply if you have employees or ICs. Yes, ICs too - check with your insurance agent or lawyer, not your cpa.