A friend of mine was talking about this and I'm interested in knowing if it is legally possible:
He says you can start a corporation under your own name, hire yourself, and use the corporation as your way to create credit for yourself (although technically through the corporation), and live side-by-side, sort of speak, with the priviliges that a corporation earns.
Is there any truth to that? How would it work?
2006-12-25 20:57:48 · 3 answers · asked by Mario E 5 in Business & Finance ➔ Corporations
Oh please. Someone's been putting a little too much stock in advertising on late night am radio.
A corporation with no assets, no business plan, etc. isn't an appealing credit risk. If you put your assets in the corporation, they are are not yours anymore, they are the corporation's. And if you try to treat them like your own, your creditors will likely be able to disregard the corporate form and go after you personally. Moreover, your taxes may go up, as the corporation will have a tax obligation and then you will have another tax obligation when you pay yourself.
On the upside, whomever you get to arrange the company and do your taxes--which will be more complicated--should make a little money.
2006-12-25 21:30:39 · answer #1 · answered by Millie M 3 · 1⤊ 0⤋
The corporation will be considered a sham.
You cannot hide behind a corporation. Any liabilities of the corporation will flow through to the owners. Its a concept called "Piercing the corporate veil."
2006-12-26 02:41:56 · answer #2 · answered by Ubiquity 2 · 1⤊ 0⤋
Well considering Corporations are considered their own legal entity I imagine something like that would be possible, if you really want to go through the efforts of starting a corporation...
2006-12-25 21:00:05 · answer #3 · answered by tamaleman33 3 · 1⤊ 0⤋