To incorporate, or not to incorporate?

[morea]

Trying to get a business registered is headache enough.

Just wondering what you guys think about your own design businesses... is it best to incorporate? To register as an LLC?

Does anybody have experiennce with liability and all that? I'm not sure how much that comes into play in our field.

I'd love your 2¢ on the matter!

[I]The more people I meet, the more I love my cats.</A>

[uncle carbunkle]

the oracle is in, you know...
;)

::Don't call me Foreman, for I am your Boss::

[morea]

/DesktopModules/dotNetBB/emoticons/lol.gif advise me, oh wise oracle! /DesktopModules/dotNetBB/emoticons/worshippy.gif

[I]The more people I meet, the more I love my cats.</A>

[uncle carbunkle]

depends on your state's labour and tax laws.

but, my understanding is that, generally, you don't need to incorporate unless you need to avoid personal liability for assets, large sums of money or employees (their wages and personal safety).

so, unless you are going to hire someone anytime soon, (and it just remains you and cat), i don't think it would be necessary at this stage. a good book keeper or cpa would be able to tell you the tax benefits/drawbacks, if any.

*ohm.*

::Don't call me Foreman, for I am your Boss::

[morea]

nifty! thank you, oh wise and all-knowing oracle!

[I]The more people I meet, the more I love my cats.</A>

[Ulysses]

I've not been doing it too long (much to learn yet) ... certainly don't want to employ anyone again ... it is working just fine for me, to outsource work to a network of friends when a big job comes up. This works fine for me, but as uncle says, you'll probably want to consider something more rigid if you need to consider liability and the like.

Whatever you do, talking to financial experts is very very useful, before doing anyhting. I just wish I could remember even half of what they know ...

[morea]

Choosing the Best Ownership Structure

http://www.nolo.com/article.cfm/objectID/2C1A52D5-9364-4F92-AD191B56DF9D4CE6/111/182/ART/

The right structure -- corporation, LLC, partnership, or sole proprietorship -- has a lot to do with who will own your business and what its activities will be.

[colonel5]

LLC is good, get the business registered under a name and get a tax ID under the business name, that really makes you safe as far as bankruptcy and tax issues are concerned (i'm in the middle of doing it myself)

[greyghost]

I'm finally at the tax ID stage of incorporating. Takes a year and a day, I swear!

Ok, ok... more like THREE MONTHS but HOLY COW IT SEEMS FOREVER.

I incorporated because I intend the business to buy a building downtown soon. So I want the biz to be responsible for the payments, and to hold the liability of people walking in and out of my place of business, should they choose to do so. Also, depending upon the building, it may be big enough to hold other businesses. I just wanted to be safe, personally.

[PrintDriver]

Best to go LLC or Inc in some fashion to protect your own ass..ets.
Get one of the Start Your Own Business books for New York State.

[jlknauff]

You can go w/ an S corp or LLC. Either will protect you and give you tax breaks that you can't get as an SP but you really need to talk to your accountant & lawyer to make sure you set it up properly for your needs & goals.

Either one is simple & straight forward and should only take a few days.

[Logo-Mechanix]

I did a sole proprietor to start with which is done through your state and gives you a tax ID number. You will also have to register your business with your local county clerks office in order to get a trade name certificate. I will probobly go LLC down the road.

[balou]

Whatever you decide, get business insurance. Had a friend that ran a small engine repair side business in the summer (teacher) out of a garage at his home. Garage burned down. Homeowners insurance did not cover anything inside of the garage that was purchased or used by the business.

[vtwin_gary]

after talking to an accountant & attorney i went
S-corp

i am a 1 man shop run from my home and this provides the protection & tax breaks that i needed. if you need anyother details pm me.