November 24, 2006
Skeet, Inc?
If you’re a small-business owner like me, did you know that you can give yourself a raise when you Incorporate your business?
My accountant is not happy with me. He’s been telling me for years that I need to turn my business into a Nevada corporation. I have looked into it, but it seemed complicated and can be quite expensive, so I’ve continued to procrastinate.
Why does he want me to incorporate? Because, by operating a sole proprietorship, I have all of my eggs in one basket. I pay state and federal income taxes on every penny that my business earns. Those taxes come at a steeper rate than corporate taxes, so I’m literally robbing myself.
That should be enough reason, but there’s another that is equally important. If my business should fail, everything I own could be seized to satisfy debts. Not a pleasant thought, to lose my home, my car and anything else of value that I own. That’s a seriously stupid business decision, to put myself at such risk.
My two “reasons†for delaying have lost their validity. The entire task has been simplified and I can do it for less than a third of the price quoted by my lawyer! I like what I do, but let’s face it: the reason I do it is to make money. Shouldn’t I be keeping as much of it as possible?
Whether you are starting a new business or already in operation, give yourself the nicest Christmas present of all: Incorporate your business
PPP EDIT.
Posted by skeet @ 12:34 pm • Business, PayPerPost
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