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Season's Greeting Everyone from Toronto, Canada!

I hope it's been a wonderful holiday for you and yours!

My question is this.....I've recently started out on my own (sole)....but now I have two good friends who work with me constantly (one of them mostly part-time....the second is full-time)...so I'm just trying to figure out the best way to set this structure up properly for the coming New Year!

What structure have you guys and gals set up your businesses with? Did you start with one and then changed it accordingly as your business grew? And feel free to add any little start up tidbits! Greatly appreciated! Thanks for your time people! God Bless!

Theo
 

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When i first started, my CPA said i didn't want a partner do to the taxes being higher. I took his word for it.
Thinking i also found out the insurance was way higher.
The way i do it. Is to get the other party to apply for a TIN number so i can pay them a fair amount and 1099 them. And i carry the insurances.

But then again I'm not that much of a business man. Someone else will have a better idea how to work it im sure.
 

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It only cost 50.00 dollar to be Inc. and u save a lot on taxs dont know the ends and outs but thats how we have things set up here plus if you get sued it does not fall back on you just the company:jester:
 

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The Lurker
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It only cost 50.00 dollar to be Inc. and u save a lot on taxs dont know the ends and outs but thats how we have things set up here plus if you get sued it does not fall back on you just the company:jester:
Sounds like you don't know the ins and outs of it... I don't know about saving on taxes... taxes are taxes either way your paying them eventually..
 

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PinheadsUnite
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It only cost 50.00 dollar to be Inc. and u save a lot on taxs dont know the ends and outs but thats how we have things set up here plus if you get sued it does not fall back on you just the company:jester:
When you say only $50 is that the lawyer's fee or state fees?

In Mass when I incorporated in 82 it was about $500 for the legal fees and I believe 272 to the state. And that $272 was a yearly fee. I disolved the corporation after about five years, so my memory may be off and fees have changed.

At my size - five employees - incorporating severly raised many costs - vehicle insurance, fees, tax structures, etc. The ease of writing things off did not balance out the heightened costs. But that was for the size I was at then.

One needs to crunch all numbers realistically and determine which route is best for their unique situation. Talk to an accountant (an honest one would be prefferable :thumbsup:) as he/she would probably be familiar with items you may not consider.
 

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I paid $600.00 to become INC. When we were finished the fancy lawyer explained to me that the papers were available at idaho.gov and I could have done it myself for about $50.00:rolleyes:

I would never go into business with "good friends". It would never work out. Pay them an honest days wage for an honest days work and stay friends.
 

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You have to weigh your factors and decide from there. What may be good for you may not be good for me. All I can tell you is why I got Inc.ed. I wanted to be ready when those contracts start flying through my door. I have experienced in the past, reforming the company while running a booming business, is very hard. It took up valuable time and money. You have to ask yourself how much you want to grow, do you want to be a 2 or 3 man operation? If so I would go against it. Think about it. If your a legit guy you should at least have 1 to 2 mil. Ins, worker comp and be bonded. You would have to do a lot of damage for some one to go after your personal assets. If you are going to inc. Don't go to the $50.00 guy!!!!!!! Pay a CPA or a lawyer to do it. You will be paying for peace of mind.
 

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****NOTE****You have to have a personal grantee to get a loan until that entity has good credit. These days you probably have to even if the entity has good credit.
 
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