Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Re: to incoporate or not? Date: 3/14/2001 5:06 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I am considering incorporating as I understand it is a smart move for the self-employed (eliminating liability, separating personal income from corporate dividend). Should I be speaking with a tax attorney or financial planner? And secondly I would appreciate any info from people who have gone through this process themselves.

I suspect the liability protection is overused as a reason to incorporate. As a closely held corporation, virtually no one will lend money to the corporation without your personal guarantee of the debt. So you're still going to be on the hook for the largest part of any debt.

Neither a tax attorney nor a financial planner are the best professionals to advise you here. I'd want an attorney familiar with corporate law, and probably a CPA or EA as well, as the tax planning issues get far more complicated with two entities (the corporation and yourself).

Finally, the process of incorporating is remarkably simple. I'm sure there's variation based on the state you're in, but my incorporation last December took only a couple of pieces of paper and a little over a hundred dollars. I could have paid even less had I done more of the work myself and not paid a service to do it for me.

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Should You Be an Index Investor?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.