My husband & I own a small Plumbing business.
What are advantages of incorporating ?
Disadvantages?
We do not currently have any other employees.
2007-07-20 12:51:04 · 6 answers · asked by ? 6 in Business & Finance ➔ Small Business
That's right, so what is your suggestion,
T.B.?
2007-07-21 06:47:50 · update #1
The primary reason a small business incorporates is to limit personal liability of having your assets (home, personal bank accounts, etc.,) lost due to a legal action against your business.
The simplest form of corporation is call a Sub S and this is easy to setup (need to work with an accountant).
With this form of business both you and your husband would become employees of the business and as such would be paid a salary and the business pays payroll taxes. Before going this route, you really should seek the advice of a CPA to see if the tax benefits will justify the additional accounting requirements for a Sub S corporation.
Jim Nicolow
2007-07-20 13:04:29 · answer #1 · answered by Jim N 2 · 1⤊ 0⤋
Ask your local accountant and lawyer, see what the options are and what suits you best.
In one of my books it said that incorporating isn't necessary because it isn't that different from a regular small business liability-wise. It's supposed to protect you more, but in reality I guess it's about the same.
Find out all the available options from professionals in your area, see all the advantages and disadvantages, there may be better ones out there for you, or you may indeed be better off as a small business.
2007-07-20 14:12:57 · answer #2 · answered by Luis 6 · 0⤊ 0⤋
Disadvantages: cost and paperwork to incorporate; ongoing cost for tax filings every year for the corporation.
Advantages: your personal assets are usually protected from being taken if something that's done through your business causes damages to someone or their property - the corporation is sued, not you personally.
2007-07-20 13:01:16 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
I can't honestly say I know of any disadvantages because every state has its own rules but there are definite tax advantages........
2007-07-20 12:56:13 · answer #4 · answered by CUSTODIAN JOE 3 · 0⤊ 1⤋
Advantage protects your personal life
if you Inc. please have your own CPA have them help you get started then you will advantages
and if you do inc. see about a SBA loan to get growing
2007-07-20 13:00:56 · answer #5 · answered by aaricka 4 · 0⤊ 0⤋
youre kidding right?
2007-07-21 05:36:06 · answer #6 · answered by Tripping Billies 3 · 1⤊ 0⤋