Re: Incorporated: Information Needed

[Peter <pnewman1 -at- home -dot- com>]

"Christensen, Kent" wrote:
> 
> re:  I want to start my own business (eventually) and I would like to know
> how one becomes "Incorporated."
> 
> The answer is ... see an attorney.  S/he will advise whether you should and
> what it will cost and will do it for you.  S/he will also likely note you
> will have the opportunity to pay income tax not only on the salary the
> corporation pays you but also on the "profit" the corporation obtains, i.e.
> two tax filings.  This is not professional advice.
 
If you haven't done it before, the laws are a morass of ambiguity. For a
decent explanation go the the SBA website, they have a publication on
choosing the form of a business organization. Do not try a one size fits
all approach. While a sole proprietorship is the easiest, you do not get
any liability insulation. This is not a BS point. People today sue at
the drop of a hat. There are several entities that can give you
insulation from liabilities. 
1. A corporation. If you file an election under IRC sec. 1372,
(Subchapter "S" of the IRC.) you will not really be subject to a double
tax.
2. A limited liability company. this entity is taxed in the same manner
as a partnership.

	See a competent professional in your state. I often see a lot of well
intentioned misinformation posted in various lists. Make sure the the
professional is qualified. Not all attorneys and even not all
accountants understand the ramifications of the various choices you
have. I have seen some awful messes created through bad advice in this
area.

-- 
Peter

"When a man sits with a pretty girl for an hour, it seems like a 
minute. But let him sit on a hot stove for a minute-and it's 
longer than any hour. That's relativity," - Einstein-