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 >>> >>> >>> >>> >>> >>> -------------------------------------------------------------------------------- >>> WISPA Wants You! Join today! >>> http://signup.wispa.org/ >>> -------------------------------------------------------------------------------- >>> >>> WISPA Wireless List: [email protected] >>> >>> Subscribe/Unsubscribe: >>> http://lists.wispa.org/mailman/listinfo/wireless >>> >>> Archives: http://lists.wispa.org/pipermail/wireless/ >> >> >> >> -------------------------------------------------------------------------------- >> WISPA Wants You! 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