I'm thinking about incorporating

[Theo]

Ed, all income must be reported to the IRS. Especially, since all parking companies require your SSN or TIN to report your earnings; you get a 1099 form from them as long as earnings are above $600 for that year, but you must report the earnings regardless.

Single-member LLC is the simplest form of incorporation: yourself

Go to Sunbiz.org for lots of info (it's the Florida government site). To form a single member LLC the cost is about $125 (and about $140 in annual fees - was $50 until about a year ago)

Fees analysis at http://sunbiz.org/feellc.html

 

[draggar]

Right now I'm not sure if it would be worth $125 / $140 a year for me now.

 

[Gerry]

Right now I'm not sure if it would be worth $125 / $140 a year for me now.

A big plus:

Say you sell a domain name for $xx,xxx.oo.

That name is seized in a WIPO.

The buyer sues.

Who is he going to sue?

You.

If the sale is conducted through the LLC, it is the LLC - not you.

The LLC has the option of dissolving because it has not got the cash to pay the judgment or refund the money.

 

[David G]

Avoid tax opportunity havens like Arizona and Delaware

Trust me on this, Arizona is no tax haven.

I believe you mean Nevada and Delaware :?:

 

[tonyfloyd]

living in NY.....should i look at Nevada or Delaware as well for LLC??

 

[draggar]

Say you sell a domain name for $xx,xxx.oo.

I've had one sale over $100 so far so I don't need to worry about huge sales like this but when I do, I would be incorporated then.

 

[Gerry]

living in NY.....should i look at Nevada or Delaware as well for LLC??

Tony, one of the best is Delaware. That is my opinion.

Total to get this was perhaps $350-$400. This included all first year's fees.

I pay $200 a year in franchise tax as an LLC. I pay $50 per year for an agent. There has to be a "registered agent" to represent you in the state of incorporation. I am locked into that $50 and guaranteed never to go up. In about 6 years, it has never gone up.

A lot of people like to stick with their home state. But getting incorporated in most states is legal. Plus, the cost of incorporating in NC was substantially higher, yearly fees were much higher not to mention yearly forms to fill out and file.

The two most popular states to incorporate are Delaware and Nevada, if I am not mistaken. About half of the Fortune 500 companies are inc. through Delaware.

 

[nameadvertising.com]

This year (2008) is the first year in a very long time we didn't use an accountant, we know a very good one so I'm only wondering about the increased cost.

My wife has an LLC and suggested that is the way I should go, which is the $40 license. Not sure about the DBA but I'm also not sure about which name to use, right now I operate with two business names (DNCoyote and CanineComputing - I may stick with Canine Computing since my wife's business lisence is for dog training (amongst other things).

As for deductions, too bad I just paid for two years of hosting last month but I know I could get ISP, domains, even new computer equipment as a deductible since the business will be web development and domain reselling.

Okay, I misread. Ignore below.....

You don't need an LLC or any other corporate status to claim deductions for your business. You can file as a sole proprietor and add file C to your returns to declare income and expenses.

In New York state, a new business (sole proprietor) can file and claim 3 years of losses while claiming deductions for operating costs and ancillary business expenses.

I am not sure why your tax adviser did not mention that you could have claimed your deductions. Hosting, domain name purchases, and other business related expenses. I do, every year.

 

[tonyfloyd]

Chris...are you a LLC or Corp?

 

[nameadvertising.com]

I am neither. I am leaning to structure my business as a private corporation. BUT and a big BUT, only when I can raise private funding. I am in the process to do that. My goal is to raise around 100k. I am working on a company charter for now. Only then will I file for corp status. If not, pretending to be corporation while a business acts like a sole proprietor ( in sales and management) makes no sense.

The biggest advantage of changing your business to a corp is to allow your business gain outside investment by issuing private shares. If not, it is not worth the regulation imposed on your business.

Either way, my knowledge is limited. An attorney will best guide you. I'd rather remain a sole prop, but the idea of getting funded by investors is very appealing. Unless you have family and friends invest in your business, sole prop's get little chance to attract outside funding.

Okay, I said too much!

 

[Gerry]

Okay, I misread. Ignore below.....

You don't need an LLC or any other corporate status to claim deductions for your business. You can file as a sole proprietor and add file C to your returns to declare income and expenses.

In New York state, a new business (sole proprietor) can file and claim 3 years of losses while claiming deductions for operating costs and ancillary business expenses.

I am not sure why your tax adviser did not mention that you could have claimed your deductions. Hosting, domain name purchases, and other business related expenses. I do, every year.

You are correct and I already do that and have for 20 plus years.

Being an LLC or such adds another layer of protection. And shares can still awarded.

As you said, there are countless options and chosing the ones that best fit your plans (and furture plans!) are important.

 

[tonyfloyd]

i think im leaning more towards LLC....rather than S Corp.....what u think Doc?

 

[Gerry]

i think im leaning more towards LLC....rather than S Corp.....what u think Doc?

Find a chart that outlines both. Or all the options. I'll see if I can find my agent's site and PM you.

I can't advise you. You're greek. :lol:

 

[vip]

So even if you'd love to have your wife as your business partner, avoid it.

Ooo, I completely agree on this one.

 

[theinvestor]

Are you making more than $250,000 a year?

John,

You asked this question because it's not worth it if you're making under correct?

 

[dmyre]

I've been thinking of this as well.
Building business credit under a corp has it's own benefits.

Robert Koiyosaki, from "Rich Dad, Poor Dad" suggests reading "Incorporate and Grow Rich".

http://www.amazon.com/Incorporate-G...=sr_1_1?ie=UTF8&s=books&qid=1225404885&sr=8-1

 

[tldrental]

I just did an S-Corp to give me some added protection for liabilities, but I am also running a side inflatables rental business, it is all still gibberish to me. the differneces between them all

 

[ck89102]

When considering your "company structure" & tax questions, I highly recommend you purchase The Domain Tax Guide (domaintaxguide.com).
Very sophisticated, thorough & surprisingly easy to read, the Domain Tax Guide provides a wealth of information on sole proprietorship, corporation or LLC (among other common questions) and has been invaluable to me in providing sound direction.