There is ONLY one benefit to operating as a sole proprietor, in my opionion.
As a sole proprietor you are treated like a consumer, and by law you are 
allowed to represent yourself in court.
If you want to sue anyone, or defend yourself against anyone's suit, you can 
do it cost effectively without a lawyer.
When one person has only their own time as an expense, and teh other party 
has to pay expensive lawyers, the one without expenses has a huge upper hand 
in dispute resolution.
Corporations, Scorps, Partnerships, and LLCs on the other hand are required 
to have a bar approved lawyer in the state they are having a legal battle 
in, and an owner or stock holder does NOT have the right to represent 
themselves or the company and in some cases not even a clear right to be 
heard. There are a few exceptions to that, for example many states have 
rules of higher presidence, for example to have the obligation to find the 
truth, or to not waste the court's time and money, or prevent undue 
financial harm due to frivilous claims. But thats another topic, and differs 
per state.

With the exception to the above, I could never recommend someone to select 
to be a Sole Proprietor, if in the wireless business.
Being a LLC or S-Corp is NOT difficult, nor expensive.  If it is, change 
accountants, or do it yourself.

Any simplicity sole pro offers can be achieved by an Scorp or LLC, other 
than the actual tax return. For example, whetehr to be cash or acccrual 
based in accounting and taxation.
Typical complexities with LLCs and S-Corps like seperate record keeping and 
such are things that should be relicated with Sole Prop anyways.

The second someone becomes a sole proprietor they loose so many options to 
escape over taxation, that far outway the savings of sole proprietor's 
simplicity.

The only exception might be if the individual looking to be a Sole Prop, 
only intends to have a very small number of residential subs, maybe under 
50, and really isn't trying to be more than the neighborhood court WIFI 
aggregator.

Now, there are many that operate as a Sole Prop, but I'd argue that they did 
that only because they started out that way when they were not fully versed 
on teh benefits of S-corp and LLC, and there may not have been a compelling 
reason for them to change. But I'm not aware of many that convert back to 
Sole Prop after being a LLC or  S-Corp. The hard part of LLC and S-Corp is 
teh upfront learning curve, not the maintenance afterwords..

I have however many times seen companies upgrade from S-Corp to Corp. S-Corp 
can have some disadvantages when trying to find equity stock holders or 
investors.
Usually the first thing they try to do is convert you to a Corp or LLC.

Tom DeReggi
RapidDSL & Wireless, Inc
IntAirNet- Fixed Wireless Broadband


----- Original Message ----- 
From: "RickG" <rgunder...@gmail.com>
To: "WISPA General List" <wireless@wispa.org>
Sent: Monday, June 07, 2010 1:43 PM
Subject: Re: [WISPA] legal entity type - was taxes


Its tempting to use a known CPA that is versed in our industry but
I've had issues dealing with those out of state. With that said, I'm
curious as to feedback on another issue. Who here is doing business as
a "sole proprietor"? I've been an "S-Corp" for years but considering
switching back due to its simplicity. This Corp stuff doesnt seem
worth all the hassle.
Thanks!

On Fri, Jun 4, 2010 at 12:05 PM, Marlon K. Schafer <o...@odessaoffice.com> 
wrote:
> I'm with Travis on this one. Sometimes we take the entire hit at once,
> other times we spread it out. It kind of depends on what we need for
> deductions and what the equipment is.
>
> Our accountant has taken a lot of time to learn this industry and is 
> really
> good. The phone number is 509.982.2922 if anyone is looking for a good 
> one.
>
> laters,
> marlon
>
> ----- Original Message -----
> From: "RickG" <rgunder...@gmail.com>
> To: "WISPA General List" <wireless@wispa.org>
> Sent: Thursday, June 03, 2010 11:55 AM
> Subject: Re: [WISPA] taxes
>
>
>> Travis, thanks for your input. I'm really looking for feedback as to
>> what our industry's standard is. I submit that the IRS does not look
>> at it as a "personal, business choice". I'd rather do it correctly now
>> than find out from the IRS I'm doing it wrong.
>>
>> On Thu, Jun 3, 2010 at 12:44 PM, Travis Johnson <t...@ida.net> wrote:
>>> This is a personal, business choice. There is no set answer. Some of our
>>> equipment we expense and some we depreciate. It all depends on what tax
>>> breaks you need now vs. later.
>>>
>>> Travis
>>> Microserv
>>>
>>>
>>> RickG wrote:
>>>> Everyone's favorite subject :)
>>>>
>>>> I'm getting mixed information form my accountants on this and want to
>>>> know what everyone else is doing. The basic question is this: Are you
>>>> expensing or depreciating the equipment? Equipment being radios (AP &
>>>> CPE), antennas, switches, firewalls, etc.
>>>> With the cost of the electronics being so low, its not making much
>>>> sense to depreciate. Which takes me to a second question: Have any
>>>> WISPs been audited by the IRS for this reason?
>>>>
>>>> Thanks in advance! -RickG
>>>>
>>>>
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