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Type of Business

Discussion in 'The Lounge' started by kgblazerfive, Mar 1, 2006.

  1. kgblazerfive

    kgblazerfive keymaster Premium Member GMOTM Winner

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    Any small business owners out there if so what is your business status Corp, S Corp etc.
     
  2. MTMike

    MTMike 1/2 ton status

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    I started as a Sole Propietor in '01 but now that I'm starting to make some real money at it I'm gonna incorporate as an S Corp this year.
     
  3. hi pinion

    hi pinion 3/4 ton status

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    Im soul propriotor. I actually would like to keep it that way, i never intented going super huge with my company, just enough to live comphortably. Thats all i need.


    Jake
     
  4. Bubba Ray Boudreaux

    Bubba Ray Boudreaux 1 ton status

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    Owning a whorehouse in Manila doesn't provide me with such mind numbing questions..........................
     
  5. 4by4bygod

    4by4bygod 1/2 ton status

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    Sole prop here.. looking into forming an LLC here soon.

    Tom
     
  6. onlychevy6

    onlychevy6 1/2 ton status

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    i went with an S corp. with my company. When i started it. It is a nevada corp. company that is run in Calif. and Texas. Right now it is not doing much money but according to my Tax guy. S corp was the way to go for tax reasons. It was either that or LLC.
     
  7. mikey_d05

    mikey_d05 1 ton status GMOTM Winner

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    Not me, but my dad is a sole prop. right now and is investigating different options at the moment for tax purposes.
     
  8. Jagged

    Jagged 1 ton status

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    When I had my webhosting company, me and my partner made it an LLC. Mainly because we didn't want our personal assets responsible with the company's assets.
     
  9. Stomper

    Stomper ΜΟΛΩΝ ΛΑΒΕ GMOTM Winner

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    CK5 discount?
     
  10. Skigirl

    Skigirl 1/2 ton status

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    Only real asset protection with sole proprietor pass thru tax benefit is with an LLC, LLP or S corp. Don't ever be a sole proprietor. Someone suing can take whatever personal assets you have. C corps have their uses but not so much if you want to take a salary and profits too (double taxed).

    Visit www.richdad.com forums for the whole story on company types, pros and cons. There's one dealing with corporations, type, tax implications etc. Garrett Sutton is a corp. attorney who posts often on the site. He's my attorney and I've recommended him to my clients as well. Knows what he's doing.
     
  11. muscle

    muscle 1/2 ton status

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    Exactly. Corporations were created as tax incentives for businesses. Sole props miss out on alot of this.

    Started mine as an S-Corp.
     
  12. Cricket

    Cricket 3/4 ton status

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    At least nothing beyond eeeny-meeny-miney-mo
     
  13. mrk5

    mrk5 The Sticker Guy Moderator Vendor GMOTM Winner Author

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    Ours is an S-Corp. Works well for our family business because we have 5 different shareholders.

    At the very least I would do an LLC.

    Also remember to maintain the "corporate veil." That means keeping bank accounts - personal and business - separate. If you are a corp, make sure you keep records of meeting minutes, articles of incorporation, and that type of thing. I've heard of companies - mostly construction - that didn't maintain the corporate veil and they didn't get the protection from being incorporated because they weren't operating like they were.
     
  14. HarryH3

    HarryH3 1 ton status Author

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    I highly recommend that you read the book "INC. & GROW RICH". It will explain the options, the reasons why you might need to select one type of corporation or another, and why EVERY business should be a corporation of some type. (It protects your personal assets from being taken away from you in the event of a lawsuit against your business that your business can't cover).

    Check with your local library. Mine keeps a couple of copies on the shelf.
     

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