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incorporating???
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Doc1680
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PostPosted: Fri Feb 15 08 10:53 pm    Post subject: incorporating??? Reply with quote

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?
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BBQMAN
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PostPosted: Fri Feb 15 08 10:57 pm    Post subject: Reply with quote

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! Wink )
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marvsbbq
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PostPosted: Fri Feb 15 08 11:18 pm    Post subject: Reply with quote

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 Shocked Shocked

The BEST thing to do is talk to an attorney about your individual situation to see if INC is needed at this time.
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pafisher
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PostPosted: Fri Feb 15 08 11:21 pm    Post subject: Reply with quote

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
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PostPosted: Sat Feb 16 08 12:19 am    Post subject: Reply with quote

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.
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Doc1680
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PostPosted: Sat Feb 16 08 12:56 am    Post subject: Reply with quote

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.
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marvsbbq
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PostPosted: Sat Feb 16 08 1:01 am    Post subject: Reply with quote

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.
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teamfour
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PostPosted: Sat Feb 16 08 1:26 am    Post subject: Reply with quote

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.
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BBQMAN
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PostPosted: Sat Feb 16 08 1:34 am    Post subject: Reply with quote

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..............................
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Big Mike
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PostPosted: Sat Feb 16 08 1:42 am    Post subject: Reply with quote

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
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teamfour
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PostPosted: Sat Feb 16 08 2:24 am    Post subject: Reply with quote

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.



I didn't say that it did.
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Doc1680
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PostPosted: Sat Feb 16 08 2:35 am    Post subject: Reply with quote

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.
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Smoke on the Horizon
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PostPosted: Sat Feb 16 08 2:40 am    Post subject: Reply with quote

Have your attorney explain the difference between LLC and INC.

I went with the LLC it seemed to fit my business just fine.
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marvsbbq
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PostPosted: Sat Feb 16 08 2:48 am    Post subject: Reply with quote

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.
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teamfour
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PostPosted: Sat Feb 16 08 3:04 am    Post subject: Reply with quote

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.
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smokinit
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PostPosted: Sat Feb 16 08 7:39 am    Post subject: Reply with quote

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.
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Doc1680
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PostPosted: Sat Feb 16 08 8:57 am    Post subject: Reply with quote

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?
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marvsbbq
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PostPosted: Sat Feb 16 08 9:59 am    Post subject: Reply with quote

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
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Doc1680
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PostPosted: Sun Feb 17 08 3:58 am    Post subject: Reply with quote

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.
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Thom Emery
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PostPosted: Wed Jun 18 08 9:05 pm    Post subject: Reply with quote

We have a Inc. for the Trash Biz
I just added a BBQ and a Welding Departments
protection and tax savings are key
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