Thanks Frank and Art! I'll definitely be making more than 60K so it sounds as if the corp. is necessary. This is great feecback. And Art, I really appreciate the extra tidbits you threw in about Quickbooks and tax ID numbers. That is an excellent point that I had not considered. I expect most of you all would agree with Frank and Art. If not, please jump in.
Art Thompson wrote: > Hi Holly, > > I've operated as an S-Corporation for nine years with a slew of > subcontractors coming through my world during that time. I've found > that clients have paid more quickly when invoiced via my corporation > and FEIN (tax ID) than via me as a freelancer with a SSN since they > don't usually have to deal with 1099s and other payroll paperwork with > a corporation. You're a vendor just like UPS or any other company > providing a product or service. > > I do my own bookkeeping and payroll (just me!) using Quickbooks and > their payroll service and file and pay all of my witholding, UI, and > other taxes online directly from within Quickbooks as well. At the end > of the year, I print out income and expense reports and hand those to > my accountant who does the corporation and personal taxes. Couldn't be > easier. > > Hope this helps! > > Art Thompson, Jr. > Logical Things - Design + Technology > 917-609-1158 [m] > 512-692-9865 [w] > www.logicalthings.com <http://www.logicalthings.com> > linkedin.com/in/logicalthings <http://linkedin.com/in/logicalthings> > twitter.com/logicalthings <http://twitter.com/logicalthings> > > > On Thu, Aug 20, 2009 at 5:30 PM, Holly Fortenberry > <[email protected] <mailto:[email protected]>> wrote: > > > Yes, Terry, this is the way I've been leaning as well. It's great to > hear your experience. Thank you! > > Terry Brown wrote: > > Personally, I can speak from experience by saying that if you > intend on > > having people working for you on whom you will be relying to > deliver work > > then you should definitely invest in some level of incorporation > - whether > > that be a C-corp, S-corp, LLC, etc. The reason for this is that > you will > > personally be held liable if (more like WHEN) they fail to > produce something > > for a client and there is an unhappy camper on the other end. > > > > Ultimately, and obviously, you would like to avoid those situations > > altogether. IF you are working by yourself and are confident in > your > > ability to deliver solid work then you can get by with a sole > > proprietorship. > > > > HOWEVER, and this is a big however, even when you DO deliver > high quality > > work that doesn't fully protect you from some deviant people out > there who > > will sue just because they know it is more costly to defend a > suit than it > > is to settle. If you find yourself in such a situation it would > be good to > > have the protections of a corporate structure. > > > > You should bone up on running a company properly if you do so > though. > > Something as minor as paying for your dry cleaning or a personal > dinner with > > a debit card from your "company" account can pierce the > corporate veil of > > protection and expose you to personal liabilities you wouldn't have > > otherwise. > > > > Hope that helps! > > Terry > > > > > > > > -----Original Message----- > > From: [email protected] > <mailto:[email protected]> > > [mailto:[email protected] > <mailto:[email protected]>] On Behalf Of Holly > Fortenberry > > Sent: Thursday, August 20, 2009 5:07 PM > > To: [email protected] > <mailto:[email protected]> > > Subject: [Refresh Austin: 4343] business model > > > > > > Hi folks, > > > > I've got a question I have not seen addressed yet. Which > business model > > (sole proprietorship, LLC, etc.) do you think works best for a > small web > > design firm? I'm planning to do my own design and basic > development; > > but, I will contract with experts when necessary for advanced > > programming or graphic design needs. > > > > Thank you, > > Holly > > > > > > > > > > > > > > > > > --~--~---------~--~----~------------~-------~--~----~ Our Web site: http://www.RefreshAustin.org/ You received this message because you are subscribed to the Google Groups "Refresh Austin" group. [ Posting ] To post to this group, send email to [email protected] Job-related postings should follow http://tr.im/refreshaustinjobspolicy We do not accept job posts from recruiters. [ Unsubscribe ] To unsubscribe from this group, send email to [email protected] [ More Info ] For more options, visit this group at http://groups.google.com/group/Refresh-Austin -~----------~----~----~----~------~----~------~--~---
