So you think you want a corporation. I have sub S corporation which I have
shelved. Because the corporation had no benefit by the time the dust
settled. I have worked for years at a CPA firm and now do freelance
programming. Here are some of the points that come to my mind:
The corporation will not shield you from taxes. You will pay taxes on
very dollar you earn.
Most of the tax 'Advantages' or similar are available to
individuals. This is a complicated subject.
If involved in legal action. they will 'tear down' the corporate veil
and attack you personally.
If legal pursuit of another, you will have to have a lawyer do the
action. Pay mucho $$$
If the purpose is a fancy name, who is doing business with you? Is it
the company or you the
person; they are doing business with? Usually it is you that
bring the clients, not
your corporate name.
If for loans and that sort, they will want your personal guarantees
and your house anyway.
The filing of federal and state forms will keep you busy or $$$ with
your CPA.
I suggest (this is not legal advise) to do a DBA 'Doing Business As' filing
with your county for a fictitious name statement if you want to operate
under a different business name. Check with your county clerks office. No
filing is required if you operate under your real name. Buy a business
license. Purchase a liability insurance policy (see a good business
insurance agent) and purchase an umbrella policy for all of you needs.
This will be less expensive. Insurance is your friend. How bad can things
get? ... ask your insurance agent. When you call your CPA or attorney be
prepared to pay $$$. You are paying for their time. My legal counsel
bills at one-half hour increments from the moment he says HI. Did I say
$$$? I use www.nolo.com, www.www.*law*.*emory*.edu, and
www.law.cornell.eduto research the issue before talking to my legal
counsel and try to save
some time $$$. File a sch c on your income taxes. Put your assets in a
generation skipping trust (you will pay capital gains tax and sometimes
more).
Insurance? One time an associate of mine was installing an interface to
the cpu of a major city. He short circuited a board and shut down the city
computer system for 3 days. It was EXPENSIVE!
Now, isn't that easy!
There is more, but maybe this will help add to the questions during the
meeting.
Sincerely,
W Richard Evans
On Tue, Feb 21, 2012 at 11:07 PM, Damu Venkatesan <[email protected]> wrote:
> Take a look at this link that may trigger some more questions when you
> meet the CPA. This shows the various options of W-2/1099/Corp-to-corp as
> well as the tax angles.
>
> http://biztaxtalk.com/node/3
>
> In terms of registering a company. It is a two step process. You will
> have to do a name registration with the Secretary of State. Then you do
> the incorporation.
>
> The links for getting the Name registration and company registration at
> the State of GA: http://www.sos.ga.gov/corporations/
>
> The name registration will cost you $25.
>
> The incorporation fee is $100. You can do both online at the above link.
>
> Once you register the company with state of ga, then you apply for EIN
> with IRS.
>
> Then you are off to a start. You can start using the company to send your
> invoices. The best choice is S-Corp.
>
> Thanks
> Damu Venkatesan.
>
> ------------------------------
> From: [email protected]
> To: [email protected]
> Date: Tue, 21 Feb 2012 16:06:39 -0600
> Subject: RE: [ACFUG Discuss] incorporation advice
>
>
> The Company Corporation is a great source and can do everything for you
> and answer all your questions: http://www.incorporate.com/?11525
>
>
>
> *From:* [email protected] [mailto:[email protected]] *On Behalf Of *Cameron
> Childress
> *Sent:* Tuesday, February 21, 2012 3:23 PM
> *To:* [email protected]
> *Subject:* Re: [ACFUG Discuss] incorporation advice
>
>
>
> You're probably going to want an LLC or an S-Corp. Google around and you
> should get some good articles on the pro/cons or each.
>
>
>
> Also consider these top of mind questions and notes...
>
>
>
> - How are you going to do your accounting?
>
> I use Quickbooks Online for this. QBOE also has a decent time entry tool
> that will pull over into Quickbooks invoices
>
> It's also worth looking at: Freshbooks, Tick, Harvest
>
>
>
> - Do you need business insurance and what type?
>
> Some corp-to-corp contracts will require certain types and amounts/levels.
>
>
>
> - Do you need a standard contract for customers?
>
> Some customers will bring one to you, others will not.
>
>
>
> - What Taxes to you need to file and when?
>
> Your CPA should be able to help you with this.
>
>
>
> - What Tax deductions can you take?
>
> Your CPA should help you with this. You can deduct all sorts of stuff.
>
>
>
> Also, read this "The unfortunate math behind consulting companies":
>
> http://blog.asmartbear.com/consulting-company-accounting.html
>
>
>
> And watch this "F*ck You. Pay Me":
>
> http://vimeo.com/22053820
>
>
>
> That is a good start.
>
>
>
> -Cameron
>
> On Tue, Feb 21, 2012 at 4:11 PM, Frank Moorman <
> [email protected]> wrote:
>
> All,
>
> I am meeting with a CPA tomorrow. I plan on starting a company in order to
> take
> on the payments for the free lance work I am currently performing. When I
> was
> talking with the CPA today, I realized that not only do I not know what
> type of
> business I need, but I do not even know what questions to ask... The
> reasons I
> am most interested in doing this is so that I can try to minimize taxes,
> but is
> that all I need to look for? The CPA is suggesting a S-Corp for me, and I
> know
> I need to talk in more detail with him, but I still do not understand my
> choices.
>
> While I will probably take the CPA's advice, I was hoping that maybe some
> of the
> people on this list that have gone through this experience can share some
> insight. Any advice on questions I need to ask the CPA, or any topics I
> should
> discuss with him would be appreciated. I would love to hear from someone
> who had
> a moment of "WOW!, I wish I thought of that when I first started..."
>
> I know that this has been discussed at ACFUG meetings in the past (even
> ones
> that I attended and now wish I remembered more...) So if someone has a URL
> to
> share, that would also be appreciated...
>
> Once again, thanks for any advice...
>
> Frank
>
>
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>
>
> --
> Cameron Childress
> --
> p: 678.637.5072
>
> im: cameroncf
>
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>
>
>
>
>
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