Re: Incorporating ?
Member #: 14100
Registered: 1996-2001
Posted:
25
Name:
David Hadley
Name:
David Hadley
Company:
Hadley Communications Inc.
Occupation:
Best Coax Splicer east of the Mississippi
Location:
Virginia Beach, VA
I don't know the cost of incorporating in PA or DE, I incorporated in VA in 1996 at a cost of $500.00, my corporate attorney keeps my minutes and files them with the state corp. commission every year on the anniversary month of my incorporation at a cost of $150.00/year. My CPA bugged me about incorporating for 6 years telling me it would reduce my taxes, I wish I would've listened to him and done it sooner. It's a no-brainer to incorporate, think about this, 1. My tax base went from 36% to 28% the reason is if you are a sole proprietor you have to pay self employment tax, ( in 1996 it was 15.3% ) on your gross earnings, this is non negotiable with the IRS, even if you suffer a loss you still pay this tax. 2. As a corporation you will set up a pay schedule for yourself ie you are now an employee of the corp. elgible for unemployment comp. should the bottom fall out again, and you will be contributing to social security, ( not that you could live off of it, if it is even there when you're elgible ) 3. You have more protection personally from lawsuits, for example: say you are involved in an auto accident and it's your fault, being a corp. protects you from personally being sued. I know this for a fact as it has happened to me when one of my employees rolled an explorer with one of my bucket trucks, my insurance co. handled everthing. 4. It gives you more protection from the IRS when dealing with subcontractors, a signed contract as well as a certificate of insurance carries more clout when dealing with the IRS should a sub that was working for you decided not to pay any taxes for the last 10 years, believe me the IRS wants their $$$ and if there's a chance they can get it from you watch out, it will rock your world. And we know how many subs there are out there not paying any taxes! There are more reasons as well to incorp. talk to your CPA if he hasn't been bugging you to incorp. I'd be looking for a new CPA, a good CPA doesn't shouldn't care if you're selling widgets or in the CATV biz. it's all about ###s and $$$s. I hope this helps.
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