To create CORP or not?

My lawyer says scorp has over 300 write offs, but llc has 30 or so. I went scorp, and every step of the process was easier becuz i did(or so im told) please note that llc dont get articles of organization, scorp get articles of incorporation. Big difference according to insurance. Incorporating(scorp) get me 2k off progressive, yes sir. You will get more out of scorp if you ask me.

 

Correction...llc GET letters organization, scorp get letters of incorporation. This discussion should have many different opinions. If u do scorp, dont forget too file your annual reviews online at your state's Secretary website. Its only 50 in GA

 

A word of advice. have a professional look at your plans, what you want to get out of the work to help you decide. What I mean by professional is an accountant who knows tax laws and what is what for the different forms of business entities - tax preparers are not accountants. A lawyer will be used when you make the decision and help you through the legal end of it. One of the things about using legal services like legalzoom and such is that they have zero advice about running your corporation, they are paper pushers so finding a lawyer who can help you plan steps and follow up for you helps a lot.

What ever you choose, remember that because you are both the owner and the operator, a corporation will not shield you from liabilities that are considered negligence or preventable. Many many lawyers will argue otherwise but they are either full of it or trying to take your money because there have been a bunch of cases that the outcome was different than what the lawyers claimed.

Hope that helps.

By the way, I am neither a lawyer or an accountant, but have been doing the business thing for years.

 

We spent three hours this week with our TN attorney. And learned what was better in IL isn't so in TN.

what we are doing isn't relevant but know that spending the money talking to a pro that knows taxes as well is well worth it.

 

Talk to a few attorneys or tax professionals, sometimes even the professionals will offer skewed advice in the interest of keeping you as a client. I had a friend who was told it was best to incorporate in Nj etc... Turns out the reason he tax "professional" felt it was best was because he could make more money that way and refer her to his circle of "professionals"

 

go to your Secretary of State Website and get the information on filing all three.

Then go talk to your Accountant and get the skinny for your state from him.

 

LLC or S-Corp: both great ideas if for nothing else than to seperate your business credit from your personal credit. You will need credit for your business, so why not seperate it from your personal credit? Also, go to Dunn & Bradstreet and get your company established in their database, as it will help you build credit faster and bigger...

 

You can do all that as a sole proprietor too.

 

Providing protection from lawsuits is only one reason to incorporate. When the corporation is small and privately held, the owners will usually need to provide personal guarantee's for any loans, especially when you are a new corporation. There are a number of tax savings reasons why I like the corporate structure. For the small operator, the sub chapter S election is often a good option. If handled properly, the corporation provides some separation of assets between personal and corporate. I have operated under corporate entities for decades and prefer that to having a sole proprietorship. I won't say that the corporate structure is right for everyone, but it works well in my situation. There can be advantages to having an LLC. There are fewer filing requirements, but I still prefer the old corporate structure. Since every person's situation is different, it would be best for you to sit down and talk with a CPA or corporate attorney who can advise you as to which might be best in your situation. When you incorporate, most states charge annual fees to maintain your corporation. I am in Tennessee and their is a minimum minimum tax. I believe the minimum is $136 plus the $20 annual report. I am in the process of filing mine for this year so I will check to make sure.