Reply by PAW on 5/8/10 9:38am
Msg #335539
I've had two business that are incorporated. I used the Company Corporation to set it all up. (http://www.incorporate.com/) But first, I would contact an attorney and tax accountant to determine if it is beneficial and if so, what form of incorporation you should use. To many variables, including personal situations, for us to make an educated determination for you.
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Reply by Susan Fischer on 5/8/10 9:40am
Msg #335540
Expensive, annual reporting, and no real benefit to
teensy business. Just my experience.
Talk to a SCORE advisor - free for small businesses - and can be a real help to growing your business.
Hope your Birthday was great!
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Reply by Hugh Nations Signing Agents of Austin on 5/8/10 9:57am
Msg #335541
With one exception, I've never seen any benefit in incorporating any of the businesses I've owned. It simply adds another layer of accountability without -- for a small business -- diminishing your liability. I've always simply registered an assumed name, as for my signing agent business. Costs 10 bucks, lasts 10 years, and gives a business-like veneer to the enterprise.
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Reply by BrendaTx on 5/8/10 10:50am
Msg #335548
Re: What about a Federal ID#? Pros/cons?
If you are talking about a federal tax identification number, it is something that I suggest to all independent contractors. For instance, I do a little freelance work here and there and I always use my FTIN.
For years we have been watching scammers masquerading in the shape of signing services. (Not all SS owners are scammers, of course...but we do remember a few, don't we?) I would not be very comfortable right now had I peppered my social security number around the 'net on my W-9s to some of those people and places. Sounds like ID theft ripe and ready to happen.
The FTIN gives you a layer of protection that makes doing business a whole lot easier on your nerves.
http://www.irs.gov/businesses/small/article/0,,id=98350,00.html
At the end of the year I get a 1099 and it is in my FTIN which is tied to my SS as far as the IRS is concerned. It takes no extra reporting as is mentioned with incorporating a business which you also asked about.
When you get into a business entity incorporation if you don't report regularly and pay your state taxes, etc. it can be a problem. For instance, when I took over as The Mrs. Kravitz (aka ugly, mean, spiteful president) of my homeowner's association, our former property management had let our non-profit status lapse in 1994! We needed to file liens for past HOA dues and I went to the state and checked it out. Good thing I did.
I had to re-establish it by filing a report and paying $25. That was easy enough to fix since it was a non-profit corporation. However, until that was done and accepted by the State of Texas, nothing in the way of lien filings or or official business, could "legally" be done. Fortunately, no other non-profit desired to register our name, or we would have lost it and had to go through a procedure of putting it back together again.
So, I am pro-FTIN...probably not so much for incorporation of a wedding or notary business.
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