To incorporate or not to incorporate and how?

[Sarita]

I am a student that will graduate in November 2008. I have a decided on a business name and registered my domain but I still need to figure out how I should incorporate or if I should. Here is my plan...

I will graduate from school and most likely go to work for someone else however, I have an office set up in my home already where I can do massage. My goal is to work out of my home eventually and almost exclusively with the exception of outcalls. Because I have a couple of other business ventures, which may or may not pan out, I thought about incorporating my name and then DBA each business so all would be under this blanket corp. OR, I could incorporate my chosen business name.

Any ideas or suggestions? How are others doing it? I am in Georgia if it helps.

Thanks!

 

[Cap.n1Eye]

Depends on a lot of things...

Firstly, what is your budget for annoying fees like this? Each dba and legal entity cost money. Might not be a whole lot, but it adds up.

You should defintely register your dbas to prevent anyone else from getting the same bright idea.

A big factor will be whether or not your outside work will be as an IC or as an employee, as well as how long you think the majority of your work will be for someone other than yourself.

Ideally, you would form an S-Corp (my preference) which will Do Business As several sub-entities. If you make each sub-line of business a separate legal entity (meaning llc or s-corp or sole prop) each will have its own registration fee and pile of paperwork to file each quarter.

One of the sub-entities would be your work as an MT for someone else.

Then each quarter you gather up all of your earnings from the various lines of business (LOBs) and file one S-Corp estimated tax return with the feds and the state.

As an S-Corp, you can take advaneforum.xxxe of a variety of tax benefits including - but not limited to - a generous retirement plan in which your S-Corp pays up to 25% of your salary, which counts as a business expense; expensing otherwise-depreciable assets (like your table, pc and other equip) so you recoup the expense in year 1 instead of over 5 years ( you can do this only to the extent your asset expense does not exceed your profits), and you can make your spouse an employee with the same benefit.

Your goal is to run your business at $0 profit and just pay your standard withholding tax for being an employee. Everything you make you pay out as salary -- or a dividend - spend on work stuff you need or spend on an employee benefit -- which benefits you!

The easiest way to do it is LegalZoom.com No attorney needed.

 

[Ya Boy]

Off topic, but just noticed your avatar R&R. Love it!!

 

[Corinna]

RelaxandRejuvenate

Stellar advice and stuff that I can definately use! Thanks so much for your reponse. I need to spend more time on these boards!!!!