On Jan 25, 2010, at 3:50 PM, Scott Ribe wrote: > > if the business is sued for all its money, your private assets are safe > > This protection is *far* weaker than most people think when the "company" > consists of just one person and is formed solely for the purpose of avoiding > liability...
Right. My understanding is that if at any point you break the 'veil' between company and person in your dealings, the whole protection collapses if a decent lawyer is doing the prosecuting. Even if you don't, the protection isn't perfect. > > Now, if you do well, there are tax advantages to incorporation... Very, very well, for the tax advantages to be worth the extra administrative overhead (if you pay an accountant to handle it) or headache (if you do it yourself). No advice is perfect, but a free relay to the list from a meeting I had with an accountant not too long ago: For incorporation to make sense, he told me, you needed to be looking at gross income > about $300,000/year. If someone has information to the contrary, I'd love a link or enlightenment, as I haven't worked with this guy (or any other accountant) before this year and honestly don't know how far to trust him. -Evan [Non-text portions of this message have been removed]
