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Considering Incorporating myself...

Discussion in 'Other Off Topic Forum' started by 134282, Jan 22, 2004.

  1. 134282

    134282 Four Time F1 World Champ
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    Aug 3, 2002
    40,647
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    Carbon McCoy
    At the suggestion of a fellow board member, i'm considering incorporating myself... This will make a lot of my expenses tax deductible and might improve some other things, too...

    However, as with everything else, i wanted to run this by you folks who've done something like this before; what are the pros and cons of something like this...? What should i watch out for, if anything...? Any pitfalls, etc....? Any suggestions, alternative or otherwise...? Any advice/comments/whatever is appreciated... Thank you...
     
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  3. Kenny94945

    Kenny94945 Karting

    Nov 1, 2003
    153
    Marin Calif
    Could you clarify.....

    Are you asking about incorpoating a business..and doing all the forms yourself?

    Or are you trying to incorporate you, such as ...Mr. John Smith, Inc. and have your life expenses deductible?
     
  4. need4speed

    need4speed Formula 3

    Nov 3, 2003
    1,597
    Pacific Palisades
    I was told a few years ago that if you make less than $200K a year, it's not worth incorporating. I don't know if that's true or not. I'd like to hear comments from people who have done this.
     
  5. 134282

    134282 Four Time F1 World Champ
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    Aug 3, 2002
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    Carbon McCoy
    Kenny, the latter... i'll incorporate myself, Carbon McCoy, Inc. and have expenses be deductible... If i become licensed (insurance broker) through my company, then i can have even MORE expenses deducted...


    Oh, and yeah, i guess i'll be filling out all of the paperwork myself, too... :)
     
  6. jimpo1

    jimpo1 Two Time F1 World Champ
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    Jul 30, 2001
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    Carbon, when they told you to go f_ck yourself, that's not what they meant! :)
     
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  8. 134282

    134282 Four Time F1 World Champ
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    Aug 3, 2002
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    When i ran it by my boss, he was really receptive to it... Mostly because, if i were licensed as a broker, he could then list my wages as commissions and he could write it off or pay less taxes on my wages or something to that effect... i make nowhere close to $200k (or any other 6 figure number for that matter) and he made no mention of it... However, it's things just like that, that i'm looking to hear... Maybe someone else knows more about that and will expound... Thank you...
     
  9. 134282

    134282 Four Time F1 World Champ
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    Aug 3, 2002
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    Carbon McCoy
    No...? Then what did they mean...? :)
    Please explain... with pictures if you have to... :D
     
  10. jimpo1

    jimpo1 Two Time F1 World Champ
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    #8 jimpo1, Jan 22, 2004
    Last edited by a moderator: Sep 7, 2017
  11. 134282

    134282 Four Time F1 World Champ
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    Aug 3, 2002
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    Carbon McCoy
    LOL, i figured...
     
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  13. Horsefly

    Horsefly F1 Veteran
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    May 14, 2002
    6,929
    NNODES, are you going to become a standard corporation or an "S" corporation? I did a little reading about such things one time, and with an "S" corporation there is no corporate tax. Your yearly profits go straight to the corporate shareholders who simply include the income in their personal income taxes. But an "S" corporation can only have 10 shareholders if I remember correctly. So that means you would obviously be the only shareholder. A standard corporation pays corporate tax, then the dividends go to the shareholders who declare them as income and then pay personal income tax on the dividends. Sort of a double tax. Be advised that in SOME states it requires a minimum of three people to start a corporation. But in some states like Delaware, one person can start a corporation by themselves. And I don't think you have to even live in the state in which you incorporate your company. I'm no expert. I just took the time once to buy a couple of books and read up on the subject of forming a corporation. It's all pretty much a waste of time unless you are actually making money and need a corporation to protect your personal assets. The general basic idea is that somebody can file a lawsuit against the corporation and maybe even drive them bankrupt, but at least the shareholder's personal bank accounts remain intact. There are probably about 1000 other guys on this board who know more about the subject than I do.
     
  14. BWS550

    BWS550 Wants to be a mod

    Apr 1, 2002
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    BRUCE WELLINGTON
    INC MEANS A HELL OF ALOT MORE PAPERWORK AS WELL AS PAYING MORE $$$$$$TO UNCLE SAM

    WHEN STARTING OFF, BECOME A CO., AS WELL AS A L.L.C AND THAT WILL PROTECT YOUR PERSONAL ASSETS............
     
  15. 134282

    134282 Four Time F1 World Champ
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    Aug 3, 2002
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    Carbon McCoy
    Can someone expound on what Arlie said...? He raised some good points, but i think in NY, one person can qualify as a company...

    Bruce, what do you mean...?
     
  16. BWS550

    BWS550 Wants to be a mod

    Apr 1, 2002
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    BRUCE WELLINGTON

    MEAN AS IN WHAT??

    A LLC OR BEING INC???
     
  17. 134282

    134282 Four Time F1 World Champ
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    Aug 3, 2002
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    Protecting personal assets, Inc., LLC, Co, etc. ... i don't have any personal assets (aside from my model car collection), so that's not a big worry... But are you saying i should consider being an LLC or a Co. as opposed to an Inc....?
     
  18. MarkPDX

    MarkPDX F1 World Champ
    Lifetime Rossa

    Apr 21, 2003
    11,126
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    CMcC L.L.C. Inc. aka NNO formerly DES

    This is really getting ridiculous
     
  19. BWS550

    BWS550 Wants to be a mod

    Apr 1, 2002
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    YES

    IM A CO., LLC

    IF YOUR A INC BUSINESS, THERES MORE PAPERWORK AND MORE $$$$$$ GOING TO UNCLE SAM, AS WELL AS IF YOUR NOT DOING MORE THAN 300000.00 / YR..DONT BOTHER.

    AN LLC IS THE WAY TO GO...IF LATER ON WHEN YOUR BUSINESS IS THRIVING (SP).....AND YOU ARE GETTING SUED FOR SOME CRAZY REASON, THEY CAN ONLY TRY AND GO AFTER WHATS IN YOUR COMPANY ONLY!!! THEY CANT TOUCH YOUR PERSONAL ASSETS, ( HOUSE, PERSONAL ASSETS IN BANK, MONEY ON PAPER, ETC.............
     
  20. 134282

    134282 Four Time F1 World Champ
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    Aug 3, 2002
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    Carbon McCoy
    So i'd be better off becoming an LLC for now, then if money actually grows, i should incorporate...?
     
  21. BWS550

    BWS550 Wants to be a mod

    Apr 1, 2002
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    NAH...STAY A COMPANY WITH A LLC ATTACHMENT

    HERE IN NJ( TRENTON) AN LLC TO OBTAIN IS ONLY 50.00 WITH SOME LAWYERS FEES, ABOUT THE SAME IN NY (ALBANY)
     
  22. 134282

    134282 Four Time F1 World Champ
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    Aug 3, 2002
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    Carbon McCoy
    But i thought, if i incorporate myself, i'd be able to list a lot more as deductions...? Does the same apply with an LLC...? i know i can make deductions as an LLC, but can i make just as many if i incorporated...?
     
  23. BWS550

    BWS550 Wants to be a mod

    Apr 1, 2002
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    SPEAK TO YOUR ACCOUNTANT IN YOUR CASE........
     
  24. Texas Forever

    Texas Forever Four Time F1 World Champ
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    Apr 28, 2003
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    Texas!
    Carbon, don't do it. I don't have the time, nor the inclination, to explain further. But forming a corporation or a LLC when you are a wage slave is a bad idea. Sorry to bust your bubble.

    Second, I gotta tell ya that I enjoyed meeting you in NO and you seem like a nice guy. So what I'm about to say may seem mean, but it's not meant to be. I guess that I can't let go of the old college professor in me.

    You need to quit wasting your time by changing your name or thinking about incorporating yourself. As a young man in his early 20s, you need to start doing whatever it is that you wish to do in life. Trust me on this one. You will never have more freedom and control over your life than you do right now. Ten years from now will be a different story. Twenty years from now will be an even different story. But right now, there is nothing holding you back, except yourself. You may think that you don't have any opportunties because you don't have any money. Well, that's not true. I didn't have any money when I was 22, but that didn't stop me from having the time of my life. Indeed, if we were to poll the old farts on this board, I suspect that most of them didn't have any money when they were 22 either.

    Say you want to be a Ferrari historian. My advice would be to save up several thousand dollars, use your experience on F-Chat and build up a great address book, and then buy a ticket to Europe with an open ended return. Not only will you have the time of your life, but you will learn one hell of a lot, maybe even something about Ferraris.

    I know that you Gen Xers hate to hear us Baby Boomers ramble on, but I spent the better part of my early 20s on the road. It got to where I could live cheaper on the road than by staying in one spot. I had my fun, and I learned a lot. More importantly, I have no desire to ever do that again. That was then, this is now.

    Please understand that I'm not trying to put you down, but I am trying to give you a kick in the butt. Someday when you are a father, you'll understand.

    Good Luck and Godspeed, Dale
     
  25. BWS550

    BWS550 Wants to be a mod

    Apr 1, 2002
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    DALE

    ARE YOU A TAX LAWYER OR A NEW WAVE ACCOUNTANT??

    HAVE A PHD OR MD??

    ANYWAY, YOU MAY EXPRESS YOUR VIEWS AND I RESPECT YOUR INPUT, BUT I BEG TO DIFFER ON SOME POINTS.

    REGARDS,
    BRUCE
     
  26. 134282

    134282 Four Time F1 World Champ
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    Aug 3, 2002
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    Carbon McCoy
    Dale, i enjoyed meeting you, too, in New Orleans but after reading your post, well...


    ...i look forward to meeting you again. That's sound advice, for sure... You're right, i need to get off my ass and change my life... Thanks for the words of wisdom, i appreciate it... We should chat soon... :)
     
  27. Texas Forever

    Texas Forever Four Time F1 World Champ
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    Apr 28, 2003
    44,469
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    Bruce, it is my understanding that Carbon doesn't have a pot to pee in nor a winder to throw it out of. Thus, my advice.

    But you are right. For a successful business owner, incorporating or forming a LLC can save tax dollars, not to mention provide significant asset protection. HW, this is not the case here from what I understand.

    But New Wave Accountant. Hey cool! I like it. Maybe I can change my logo to a CPA on a surf board. Dig it.

    To answer your question, I am nothing more than a humble CPA, who just happens to have a PhD. Some of us don't know when to guit. :)

    DrTax
     
  28. Texas Forever

    Texas Forever Four Time F1 World Champ
    Rossa Subscribed

    Apr 28, 2003
    44,469
    Texas!
    Carbon or whatever, don't mean to rain on your parade... Well, yeah, I guess I did. But don't let it bother you. My 16-year old son doesn't listen either. Such is the way of the world.

    Good Night, DrTax
     

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