>A colleague of mine is an accountant that has
>recently incorporated his business. He knows all of
>the ins and outs of the process. And he would be
>willing to help me if I asked him.
Alain, et al:
I also formed a for-profit corporation this year. But, at least in
California, non-profit corporations are governed by a different set of
laws; so I'm not sure how applicable the experience is. I am on the Board
of Directors of a non-profit corporation, and might be able to get some
insight from original baord members or the foundation's account or attorney.
I'm inclined to follow Eric's partnership approach, or at least look very
carefully at the consequences of incorporation. I don't know about
non-profit; but a new for-profit corporation expecting to generate less
than $1 mil in first-year income pays a $100 filing fee & $300 franchise
fee to file articles of incorporation in California, AND must prepay $500
in estimated taxes 3 1/2 months into its first income year. Thereafter
there is a minimum tax of $800 annually.
After nearly two decades of operating a sole proprietorship I feel like I'm
confined to a "business straight jacket" when conducting corporate affairs.
We're talking formal meeting notice, written minutes and authorization of
most decisions, strict separation of corporate & personal funds, filings to
the Secretary of State whenever corporate offices move or corporate
officers change, etc. (It has forced me to keep a better set of books,
which is probably a plus.)
For me incorporating was a must because (a) I will be marketing a product
worldwide (or potentially more dangerous...through distributors I may have
little control over) so I must limit liability, and (b) it will be easier
for me to liquidate or generate equity income if I wish to in the future.
I don't see either (a) or (b) as critical to this project: if we are
non-profit and our product is free and the license disclaims any liability,
potential liability is nil on a practical basis. But "practically nil" is
not the same as "nonexistent". That's why we have attorneys and insurance
companies, eh Eric?
Rob Cozens, CCW
http://www.serendipitysoftware.com/who.html
"And I, which was two fooles, do so grow three;
Who are a little wise, the best fooles bee."
from "The Triple Foole" by John Donne (1572-1631)
