Except you have a financial person giving legal advise. No competent lawyer is going to agree. It is a simple fact that a corporation provides the highest liability protection for an individual of the available business structures.
-Matt On Jun 3, 2009, at 12:09 AM, RickG wrote: > 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! 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! 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! 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! 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! 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/
