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Doc1680 BBQ Super Pro

Joined: 17 Jun 2005 Posts: 2609 Location: Indianapolis
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Posted: Feb 15 2008 Post subject: incorporating??? |
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I keep hearing these commercials about the pitfalls of not incorporating your business. Have you guys all done this? Is it neccessary? Also, do you have to be doing alot of business for it to be worth doing? _________________ Love the voodoo that Q do.
Doc |
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BBQMAN BBQ Super All Star

Joined: 13 Jun 2005 Posts: 15475 Location: Florida
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Posted: Feb 15 2008 Post subject: |
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I am Inc. as a chapter S Corp. and IMHO, yes you need to.
There are some business' that need to go in a different direction.
Inc. your business provides some tax advantages, but my main reason is to protect my personal assets.
The business is the business, my personal belongs are mine (and I intend to keep them! ) _________________ BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005. |
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marvsbbq BBQ All Star

Joined: 15 May 2005 Posts: 6186
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Posted: Feb 15 2008 Post subject: |
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I agree with BBQMAN, but i think it all boils down to your personal net worth. If you don't have "A pot to p**s in", you might not need to worry about it. The reason being, if you were sued for some reason (either because of something you did business wise or personally) and you didn't own much, not much they can get.
On the other hand, if you own your home (buying), have other assets worth something (savings, 401K, material items, etc) that you worked your entiere life to have...you MIGHT want to INC.
Also, if you are fairly young and get sued and lose everything, you still have several years of "work life" to recoupe that loss. If you are up there in years (mid 50's +) like me.... and if you were to get sued and lose everything....you MIGHT wind up living under a bridge somewhere barbecuing for your homeless commrades....Or worse yet, living with your RELATIVES
The BEST thing to do is talk to an attorney about your individual situation to see if INC is needed at this time. _________________ Often imitated but never duplicated |
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pafisher BBQ Pro
Joined: 08 Jan 2008 Posts: 535 Location: Pa.
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Posted: Feb 15 2008 Post subject: |
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yep incorporated here too ,,, for the same reasons as bbqman ... i wanna keep my things ... just in case ,,, because you never know what can happen . |
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Harry Nutczak BBQ All Star

Joined: 01 Mar 2007 Posts: 8558 Location: The Northwoods
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Posted: Feb 16 2008 Post subject: |
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Now I think incorporating is just as important if you are piss-poor, or wealthy, it is meant to seperate your personal liabilities and assets from your business liabilities and assets so if one side goes sour, you do not lose both!
Case in point; BATES PIT"S! the guy was not incorporated, the wife wanted a divorce and took all his business assets with her and left him in a very very bad position.
if he was properly incorporated she would not have gotten the deposits for pits that were not even built yet.
also with incorporation you can sell private stock to generate money for investments in the business. And this gives you some seperations from a direct investor. _________________ Just remember that the toes you may step on during your climb to the top will also be attached to the a$$es you'll be forced to kiss on your way back down! |
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Doc1680 BBQ Super Pro

Joined: 17 Jun 2005 Posts: 2609 Location: Indianapolis
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Posted: Feb 16 2008 Post subject: |
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Oh, I see. Inc'ing your business is a way to seperate it from your personal assets. So even if I were to be doing part time catering it would be in my best interest to inc. And dealing with food I can see where that would be smart to do. How does one go about becoming an inc.? Like I said, I hear the commercials, but they sound to me like people just wanting to make a buck when there might be a less expensive way to go about it.
Thanks guys. _________________ Love the voodoo that Q do.
Doc |
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marvsbbq BBQ All Star

Joined: 15 May 2005 Posts: 6186
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Posted: Feb 16 2008 Post subject: |
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Harry Nutczak wrote: | Now I think incorporating is just as important if you are piss-poor, or wealthy, it is meant to seperate your personal liabilities and assets from your business liabilities and assets so if one side goes sour, you do not lose both!
Case in point; BATES PIT"S! the guy was not incorporated, the wife wanted a divorce and took all his business assets with her and left him in a very very bad position.
if he was properly incorporated she would not have gotten the deposits for pits that were not even built yet.
also with incorporation you can sell private stock to generate money for investments in the business. And this gives you some seperations from a direct investor. |
Actually Harry, in a divorce the ex is intitled to HALF of any and all assests regardless if you are INC or not.
That being said, if you have a partner (or multiple partners), the ex can only take half of YOUR % of ownership. _________________ Often imitated but never duplicated |
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teamfour BBQ Fan
Joined: 01 Dec 2007 Posts: 233 Location: Sterling, Virginia
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Posted: Feb 16 2008 Post subject: |
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LLC here. Cross between Inc and sole prop.
There is an excellent book out there called Inc Yourself. A little old but really explains the pros and cons of Inc'ing. Some folks Inc their family. _________________ Lee
BWS Party
Bar-B-Chef offset
Great Outdoors vertical propane
UDS |
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BBQMAN BBQ Super All Star

Joined: 13 Jun 2005 Posts: 15475 Location: Florida
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Posted: Feb 16 2008 Post subject: |
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teamfour wrote: | LLC here. Cross between Inc and sole prop.
There is an excellent book out there called Inc Yourself. A little old but really explains the pros and cons of Inc'ing. Some folks Inc their family. |
An LLC does not offer the same protection as an S Corp.
Doc, your best bet is to hire a lawyer. You can file yourself through the state you live in, but usually not worth the hassle vs. the money savings.............................. _________________ BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005. |
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Big Mike BBQ Pro
Joined: 07 Oct 2006 Posts: 863 Location: Dayton, Ohio
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Posted: Feb 16 2008 Post subject: |
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Doc,
Here is a link that should help you out. It has lots of information for starting a business in Indiana. On the right side of the page there is also a forms link that takes you to the Article of Incorporation paperwork so you can take a look at that. It is really not that expensive to incorporate and you can do it yourself. My wife incorporated her business and I want to say it only cost her about $200 total. I will be incorporating soon myself.
http://www.in.gov/sos/business/index.html _________________ Mike
Eagle River BBQ
CBJ
Stumps Platinum 5 Trailer
Smokin Tex ST1400
Chargriller Charcoal Grill
Members Mark 8-burner Gasser |
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teamfour BBQ Fan
Joined: 01 Dec 2007 Posts: 233 Location: Sterling, Virginia
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Posted: Feb 16 2008 Post subject: |
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BBQMAN wrote: | teamfour wrote: | LLC here. Cross between Inc and sole prop.
There is an excellent book out there called Inc Yourself. A little old but really explains the pros and cons of Inc'ing. Some folks Inc their family. |
An LLC does not offer the same protection as an S Corp.
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I didn't say that it did. _________________ Lee
BWS Party
Bar-B-Chef offset
Great Outdoors vertical propane
UDS |
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Doc1680 BBQ Super Pro

Joined: 17 Jun 2005 Posts: 2609 Location: Indianapolis
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Posted: Feb 16 2008 Post subject: |
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Teamfour,
Thanks for the tip on the book. I will check it out. Though I may not try to handle it myself, I still want to know how everything works.
BBQMAN,
I will check into the different type of inc. but i'm sure i will go the S corp route if it provides more protection.
Big Mike,
Thanks for the link. I have been scouring the gov. site for a while and for some reason couldn't find what I was looking for.
And thanks to everyone for their input. I'm still a ways off but I seem to be getting more requests to do cooks so i figured it might be time to really start checking things out. _________________ Love the voodoo that Q do.
Doc
Last edited by Doc1680 on Feb 16 2008; edited 1 time in total |
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Smoke on the Horizon BBQ Super Pro

Joined: 27 Jun 2007 Posts: 1362 Location: Tulsa
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Posted: Feb 16 2008 Post subject: |
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Have your attorney explain the difference between LLC and INC.
I went with the LLC it seemed to fit my business just fine. _________________ Team Enoserv |
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marvsbbq BBQ All Star

Joined: 15 May 2005 Posts: 6186
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Posted: Feb 16 2008 Post subject: |
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Not that this is the RIGHT thing to do, but I was in business 13 years before I became INC.
It is not something you NEED to like getting a license or anything like that. You should see how your business grows or even survives before you do.
That being said, you REALLY should talk to an attorney about your given situation and needs to make the proper decision. _________________ Often imitated but never duplicated |
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teamfour BBQ Fan
Joined: 01 Dec 2007 Posts: 233 Location: Sterling, Virginia
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Posted: Feb 16 2008 Post subject: |
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Also, make sure you check regulations if located in the Sate of Lousyana. We operate under Napoleanic code which is diff then the other 49 states.
I know that S corps are handled diff here. _________________ Lee
BWS Party
Bar-B-Chef offset
Great Outdoors vertical propane
UDS |
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smokinit BBQ Fan

Joined: 09 Jan 2007 Posts: 386 Location: Coxsackie NY
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Doc1680 BBQ Super Pro

Joined: 17 Jun 2005 Posts: 2609 Location: Indianapolis
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Posted: Feb 16 2008 Post subject: |
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smokinit wrote: | I am still DBA and just have additional liability insurance 4mill plus. The DBA gives me greater tax advantages and the extra insurance is cheap. |
What is DBA? How are you taxed? If I might ask? _________________ Love the voodoo that Q do.
Doc |
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marvsbbq BBQ All Star

Joined: 15 May 2005 Posts: 6186
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Posted: Feb 16 2008 Post subject: |
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Doc1680 wrote: | smokinit wrote: | I am still DBA and just have additional liability insurance 4mill plus. The DBA gives me greater tax advantages and the extra insurance is cheap. |
What is DBA? How are you taxed? If I might ask? |
Doing Business As...DBA _________________ Often imitated but never duplicated |
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Doc1680 BBQ Super Pro

Joined: 17 Jun 2005 Posts: 2609 Location: Indianapolis
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Posted: Feb 17 2008 Post subject: |
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marvsbbq wrote: | Doc1680 wrote: | smokinit wrote: | I am still DBA and just have additional liability insurance 4mill plus. The DBA gives me greater tax advantages and the extra insurance is cheap. |
What is DBA? How are you taxed? If I might ask? |
Doing Business As...DBA |
Thanks marv. _________________ Love the voodoo that Q do.
Doc |
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Thom Emery BBQ Fan
Joined: 13 Oct 2007 Posts: 340 Location: Indio Ca
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Posted: Jun 18 2008 Post subject: |
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We have a Inc. for the Trash Biz
I just added a BBQ and a Welding Departments
protection and tax savings are key _________________ Thom Emery
Past President California BBQ Association
www.BBQThom.com |
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