Smartest Thing I Ever Did For My Business

by bretski

Posted: 15 years ago 20 replies

INTERNET MARKETING

I am happy to say that my business is finally incorporated!

I formerly had a brick and mortar business years ago and was incorporated. The tax benefits and ability to protect myself personally were the main reason for incorporating but as my business grew I learned a lot from my accountant... things that I'm not going to share here because I don't give out tax advice and we're all from different countries etc.

I had looked into getting incorporated back a year or so ago through some of these online services that will take care of everything for you. Needless to say, I had better things to do with my cash and delayed and delayed.

After doing a little research I figured out that it really isn't all that difficult to do it yourself. Fill out a one page application, send it to the state along with the filing fee and I'm freakin' incorporated. Ten minutes on the IRS website and I have an tax number (EIN number)! Done!

If you're putting this off or think it's too difficult I would highly recommend that you find out for yourself how easy it can be. It sure makes it easier to treat your business like a business when everything is seperate.

#business #incorporate #smartest #thing

Fred Young 15 years ago

I'm self employed and I had to incorporate last year. I really didn't want to, because I thought it would be a major hassle. In reality it's easy and not nearly as expensive as I thought it would be.

My accountant did all the paperwork for me and only charged me $75. You can also do it online, as stated above. It was just easier for me to have my accountant do it. Any expenses or profit from IM will run right through my company.

Anyone that's on the fence about incorporating, I also recommend you do it. It's simple to do and there's a ton of benefits from being incorporated.

2 other quick things:

1) I live in Florida, so I'm not sure how this works outside of the US.

2) I don't know a whole lot about LLC's, but after doing a little research, I found that Being an S Corporation was best for me, since I'm the only person in the company.
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Linx99 15 years ago

For me, the best thing I ever did was hire a bookkeeper to handle all expenses, transaction reports etc. She only spends a few hours at the end of every month and then I have added to our shared Dropbox folder a nice set of reports that I can analyze at my leisure.

Being able to see exact P&L and transaction trends helped me cut expenses by about 33% and improve the bottom line.

Best of all - it makes tax time an absolute breeze! Just forward the annual reports straight to the accountant.

If you don't have a bookkeeper yet, get onto Odesk or Elance and start researching.
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Joyful Thiek 15 years ago

Congratulations Bret. I'm yet to make my smartest decision. I currently have a potential candidate, but there's a good chance it will be the worst decision of my life too. So I'll not say it until I've realized it in fact is the smartest decision I've taken. So far as incorporating goes, it's something I know little about. I'll eventually consult with others sometime soon, but I don't think it's what I need at the moment.
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queenbuzzy 15 years ago

I got incorporated last year!

I have to say, though, that the smartest thing I ever did for my business was trademark my little Queen logo, and get copyright protection on my books. I've already been involved in TWO infringement suits.

<taps head> Not just a hat-rack, my friend
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iAmNameLess 15 years ago

One of the best posts I see on here! People will think that statement is crazy, and that there is a large number of threads with information that should be treated as gold. If you become incorporated, you're making a great decision, and it shows that you take yourself, and your business seriously.

Great job, and congratulations!
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celenco 15 years ago

I made my company an LLC last year and it feels good to know that I can't get sued. lol
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- Linx99 15 years ago
  
  Originally Posted by celenco
  
  I made my company an LLC last year and it feels good to know that I can't get sued. lol
  
  Just as a general, non-legal advice, heads up:
  
  You need to be aware that once you incorporate in whatever form you choose, you must ensure you follow the required corporate formalities that state and federal law requires (think, annual meetings, annual filings, state taxes, entering into contracts by the company and not in your personal capacity, separate bank accounts).
  
  Failing to do so can lead to the ability of a court to 'look thru' the company direct to you as incorporator.
  
  Speak to a small business attorney - they'll be able to keep you on the right track.
  
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  Torreylee 15 years ago
  
  Congrats Bret! I went S-Corp a few years back and I love the tax advantages of it, smart move!
  
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  bretski 15 years ago
  
  Yes, I still have to file the paperwork to be approved as an S-Corp but that's next on my plate.
  
  Set up the bank accounts... I will be looking for an accountant. I'm not at all fond of lawyers and have spent close to 20K on lawyers over the past 3 1/2 years so I'll stick with an accountant. But you are right, Linx, in that there are things that need to be done each year to stay legit. The annual meeting is in the works and I am planning on doing it over a lobster dinner
  
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  bretski 15 years ago
  
  Originally Posted by Torreylee
  
  Congrats Bret! I went S-Corp a few years back and I love the tax advantages of it, smart move!
  
  Yes, I forget how it works but I know that it keeps you from being taxed twice by the feds. I leave that up to the accountant though. I always found that a good accountant was worth their weight in gold... AND they're a tax write off, I do believe!
  
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Charlotte Jay

15 years ago

I've been wanting to do this, unfortunately the great state of Massachusetts requires a filing fee of $500

But it's on my list of to do's in the near future.

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bretski

15 years ago

Originally Posted by Charlotte Jay

I've been wanting to do this, unfortunately the great state of Massachusetts requires a filing fee of $500

But it's on my list of to do's in the near future.

Ahhhhhh! My home state of Taxachussetts!... Just below the "live free or die" state of tax free NH. I grew up in Framingham.

NC was reasonable with a $125 filing fee... and the gun laws are reasonable down here also. I'm not even going to say anything about... gulp!....snow?

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edv 15 years ago

Congratulations Bret I hope your success continues
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Charlotte Jay

15 years ago

Arghhhh! Snow! Did you see our April Fool's storm? Ridic. lol Framingham is a nice town, but has gotten expensive over the past decade. Central Mass is where it's at

You know I looked at filing in another state, but then I still have to file here as an out of state corporation for-drum roll please-$400. Bwhahaha. Killer savings right there. Now what were you saying about guns? hehe

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bretski

15 years ago

Originally Posted by Charlotte Jay

Arghhhh! Snow! Did you see our April Fool's storm? Ridic. lol Framingham is a nice town, but has gotten expensive over the past decade. Central Mass is where it's at

LOL! Sorry about that! April Fools Day is my birthday too so you're welcome for the birthday present just from me!

Mass is prettier the further west and north you go but I am not surprised that you get hammered so hard.. very sad indeed considering that it is still a tech hub or at least it was during the 80's... almost a Silicon Valley of the East.

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kevinw1

15 years ago

A couple of people mentioned keeping personal and business separate.

Whether you are incorporated or not, you can and should do this - it makes tax time much easier, it helps you know whether your business is actually making any money, and if you ever get a tax audit it will be a lifesaver.

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Charlotte Jay

15 years ago

Originally Posted by kevinw1

Agreed Kevin. My husband I each have a freelance business and file a Schedule C for our profits and losses. You kind of get into the routine of keeping business and personal separate after a while.

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Manuelcrc 15 years ago

Good for you man. I wish that was possible in Nigeria.
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Richnana 15 years ago

You made a wise move. Congratulations.. BTW, a warrior has a report on how to get 90K in credit for your new incorporated business - it is a great report.. I think you will have to find it yourself.. but making your business a legal entity shows your dedication and commitment. Great for you.
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WorkitSmart 15 years ago

Congratulations! And thanks for the tip.
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Smartest Thing I Ever Did For My Business

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