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That’s the joy of small business corporations.
I personally handle all the stuff myself so I don’t need to pay anyone for paychecks etc.
Benefits are:
– limited liability, if your company goes bankrupt, your protected
– tax benefits if you make a ton of money
– hide your assetts under the corporate umbrella
– in case of divorce, lay yourself off and save on spousal supportFor all the hassles, I still think they are worth it if you can manage it yourself.
limited liability from lawsuits is another advantage of incorportation
:rolleyes:
I also found a corporation not to be all that. I run a sole proprietorship now and i like it significantly better. There’s still government crap to take care of but significantly less. You dont have to worry about minute books for example.
As for the tax savings I dont really get the point. You save money if you dont pay yourself. But you cant spend that money either! As soon as you pay yourself you’re taxed regularly (on the money you pay yourself). For a true tax advantage someone has to move offshore.
Antoine
Reduced liability and possible tax benefits are the only practical reasons I am aware of. The increased accounting fees and, depending on where you incorporate, business taxes generally offset any savings you might see. You have do a LOT of business to justify the added expense and hassles.
I am begining to see that the hastles of incorporation are not really worth the status… and quite clearly….
I mean, what liability am I really going to encounter in this business, unless I do something maliciously stupid?
With my lawyers on year-round “retainer” so that I can get legal advice anytime I need it (Like with the recent Tradal issues), I think maybe all I need is a good business insurance policy???
Anyone have one of those? :confused:
