Have you ever wondered what it means to be incorporated? If
it’s really worth the time and money…. and anyway, just
how much time or money might it cost? Is it for me or my
business? How do I do it? And lastly, why haven’t I heard
about this before?
Well, the chances are you HAVE heard about it, but what you
heard scared you off, or was erroneous. Until now, maybe you
have not even done any personal research. You picked up a
rumor or hint or innuendo here or there.. but that’s about
all. No ACTIVE pursuit.. and again, probably because what
you heard may have just discouraged you from even spending
time on the subject.
Well, congratulations. You are finally at a place you can
start comfortably.
Why do I write about those circumstances? Because I lived
them, and to my extreme self disappointment, did not take
the matters into my own hands to investigate.
I’ve been a small, one person, self employed business for 17
years.. and was NOT incorporated. You know, growing up,
money and things like this just didn’t get discussed in my
family. Not that it carried any stigma like sex or the
like.. my folks just didn’t know. When I went to college,
and even though I was an Economics “major”, it didn’t get
covered in any of the classes. I sort of just emerged or
morphed into being in business and never was big (or smart
enough) to have a business advisor. I had an accountant, and
he was good at keeping me compliant with IRS rules for the
entrepreneurship type business I was in. I guess he figured
I’d made a choice not to be incorporated.. my business
structure was not his business; his business was keeping me
compliant with the rules set forth for the business I was
in. My principals (I was a manufacturers’ rep) probably
figured I knew what I was doing, and anyway, as long as I
was selling their products. what did they care. Then there’s
my competitors… even the friendly ones.. or the guys at
the Chamber of Commerce meetings. Like they care.. right? ?
?
But one day, in spite of myself, I did stumble into a good
reference book, and it opened my eyes as big as dinner
plates.
I learned that a small company (revenues less than $75,000,
mainly commissions) COULD incorporate and do so
professionally for under $1000; that if I had previously
been incorporated (LLC or Chapter S), I could have paid
about half as much in taxes as I did over the 17 years I’d
been doing just a Schedule C, plus I’d have had far less
liability.
Once I learned that this was possible, I started to go about
learning how and where.. and this can make a difference.
It seems like the two best states are Delaware and Nevada,
and Nevada has an edge because of state taxes.
And by the way, your local attorney or accountant unless
licensed in those states is probably not going to be your
best source of help or information, and certainly not the
lowest in costs.
If you were to start your research on the Internet, you’ll
soon discover your next problem.. how to choose. You must be
very careful here. There are firms that will sell you
services for money you really don’t need to spend, even if
they deliver all the services. There are those who will seem
to be real bargains at $300 or less.. but you get very
little. The facts are you can get the forms and paperwork
free from most states.. but not the “go with” guidance.. and
if you are doing it yourself, you want some help.
The point: choose and evaluate carefully. If you do, you’ll
probably find yourself using the services of a mid-
competitive-price service and you will get good value. You
CAN do this yourself with a service.. and you’ll be amazed
how much you can save and benefit.
Don’t do as I did for many years and ignore it or feel it
can’t be done. NOW is the time to begin and stop overpaying
taxes.
Joe Leech is a small businessman who learned way too late
about the how and why of incorporating. He’s learned now
and provides valuable tips, insites, and FREE resources
at his resource site at http://incorporateinfo.ouronlinebusiness.com
