Makes sense to me...thanks! -RickG

On Tue, Jun 2, 2009 at 11:32 PM, Marlon K. Schafer <[email protected]> 
wrote:
> Let me get my accountant wife to answer that one.  Here's Melissa....
>
> Well, for us it's not yet in our best interest to incorporate.  Sometimes
> the reason for incorporating is to help insulate the individual from a
> lawsuit - but usually if the corp is sued, they also sue the owner of the
> corp.  I agree with you about the S-Corp - the income from an S-Corp is
> picked up on your personal return so there aren't usually as many advantages
> when doing tax planning.  We have not incorporated because the cost of being
> a corp (accounting, legal, another set of books, more time on Melissa's part
> to work on the books...) is greater to us right now than the benefits.  I
> see it as something that we will probably need to do in the future as our
> income increases and we need to do more tax planning.  Hope that helps.....
> Melissa
>
> There ya have it!
> marlon
>
> ----- Original Message -----
> From: "RickG" <[email protected]>
> To: "WISPA General List" <[email protected]>
> Sent: Monday, May 25, 2009 12:02 PM
> Subject: [WISPA] Legal Entity - which type? Was: Quesiton on Funding
> /Financing / Capital Availability
>
>
> Ha! Another interesting topic! In the past, when doing business for
> myself, I legally filed as a sole-proprietor. When I got into the WISP
> business, for a multitude of reasons, I became an "S-Corp". After
> filing my taxes, it seems to be much simpler and possibly more
> advantageous to just be a sole-proprietor. But that goes against all
> advise I receive.
> Marlon, I'm actually surprised that you are a sole-proprietor. What
> benefits have you found by remaining so?
> -RickG
>
> On Mon, May 25, 2009 at 11:54 AM, Marlon K. Schafer
> <[email protected]> wrote:
>> One more thing. I don't agree with your definitions per se'.
>>
>> We all have businesses. A proprietorship is a TYPE of business. We are a
>> proprietorship because I'm not incorporated (incorporating is over rated
>> and
>> expensive to do right). I'm still a business though....
>>
>> http://en.wikipedia.org/wiki/Business
>>
>> http://en.wikipedia.org/wiki/Sole_proprietorship
>>
>> http://en.wikipedia.org/wiki/Asset
>>
>> marlon
>>
>> ----- Original Message -----
>> From: "Charles Wu" <[email protected]>
>> To: "WISPA General List" <[email protected]>
>> Sent: Sunday, May 24, 2009 10:03 PM
>> Subject: Re: [WISPA] Quesiton on Funding / Financing / Capital
>> Availability
>>
>>
>>> Hi Marlon,
>>>
>>> I think it's appropriate to make a few definitions and distinctions on
>>> things so everyone is on the same page
>>>
>>> Specifically, for purposes of making my point, I define
>>>
>>> Proprietorship: A commercial activity engaged in as a means of livelihood
>>> or profit
>>>
>>> Business: A unique system of processes and procedures that documents and
>>> codifies a specific method of proprietorship
>>>
>>> Asset: cash, inventory, equipment, infrastructure, customer contracts,
>>> brand, marketing, etc
>>>
>>>>Grin. Sure it is. That's what a LOT of small business people do. It's
>>>>also kind of common for doctors, dentists, plumbers etc.... Sometimes it
>>>>sucks,
>>>
>>> Now, everything you stated above is just a method of proprietorship, and
>>> in most cases, from a sale perspective, a proprietorships isn't worth
>>> anything more than the depreciated value of its assets
>>>
>>> Say you were buying out the local plumber's office -- what would he have
>>> of value? His truck? Some old tools? A customer list / brand perhaps
>>> (but the reality of things is that customers do business with him because
>>> of him, and if you bought him out and he moved out of town, those
>>> customers would probably go back to being on the open market)
>>>
>>> Now, in comparing the WISP 'proprietorship' vs. the plumber, it's worth
>>> noting that the WISP is somewhat unique in that it results in the
>>> creation
>>> of an independent asset that holds onto a lot of value (e.g., the
>>> recurring revenue and everything that goes to support it); in many ways,
>>> this is akin to real-estate
>>>
>>>>Not
>>>>everyone out there even wants to get that big (if I had a nickle for
>>>>every
>>>>business owner that's told me the most fun they had and the most money
>>>>they
>>>>made was when it was just them, no employees......) But then again,
>>>>that's
>>>>one of the really cool things about this buisness, it's big enough and
>>>>flexible enough to allow many different business models and operator
>>>>dreams
>>>>to bear fuit!
>>>
>>> True...and you have the added benefit of building an asset that has value
>>> (be happy we're not plumbers =)
>>>
>>> -Charles
>>>
>>>
>>>
>>>
>>>
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