I wasn't talking about going public. When you incorporate you need to decide how many shares of stock you will have. "How to Incorporate" is a good book that explains many problems with corporate stock - http://bit.ly/16To0Q
On Aug 22, 4:39 pm, Holly Fortenberry <[email protected]> wrote: > LOL, now I'm a bit more (or less) confused. :-) So Terry, I take it > you think the corp. veil DOES protect even a one-man show? Would you > mind expanding on your disagreement? Also, I'm assuming you are not > referring to the shares statement. I also would not want to go public. > That's a bit too big for me. I want to keep the business small (between > 3 and 20 employees ultimately). For now it's just me and a some > contractors. > > Thank you! > Holly > > Terry Brown wrote: > > I respectfully disagree with everything you just said! :) > > > Sent from my iPhone > > > On Aug 22, 2009, at 3:07 PM, ferodynamics <[email protected]> wrote: > > >> The LLC is the more modern form of the corporation. > > >> I think one big difference with LLCs, they don't have shares of > >> stock. If you read about corporate shares of stock you'll see there > >> are so many potential problems, I personally wouldn't touch that with > >> a 10-foot pole. > > >> The IRS doesn't care if you're an LLC or a Corporation, they see no > >> distinction, so no advantage one way or the other--just one big > >> disadvantage for LLCs and corps: more paperwork. The "s-corp" is an > >> IRS-specific term that has nothing to do with filing your articles of > >> incorporation, in other words: more paperwork and probably more > >> scrutiny if there's really a tax savings. > > >> I don't think there is much tax benefit to forming an LLC unless you > >> figure out all the "corporate lunch" loopholes that probably don't > >> apply to a small business anyway, good luck with that. As an LLC you > >> end up paying a higher "business rate" for everything, plus there is a > >> business tax you're going to pay to Texas every year, I forget the > >> name of it now--ask your accountant :-) > > >> As far as liability protection, this is a myth, just look up the > >> lawsuits yourself. If you're a small business, it's obvious to the > >> court who is at fault: you! I believe you only get liability > >> protection with a large business where it is not as clear who is > >> liable, but even then, good luck! > > >> I'm not a lawyer but I did just finish a business law class and spent > >> a fair amount of time on the IRS website, Secretary of State website, > >> reading books, etc. So my advice: as long as your business is small, > >> stay a Sole Proprietor and stay out of trouble and pay the self- > >> employment tax with a smile on your face. Texas State has a Small > >> Business Development Center and their advice is probably better than > >> mine, they have offices in Austin and RR > >> -http://www.business.txstate.edu/sbdc/ --~--~---------~--~----~------------~-------~--~----~ 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 -~----------~----~----~----~------~----~------~--~---
