Discussion Forum
Discussion Forum
Up Next
Video Shorts
Featured Story
Source control, ventilation, and filtration are the keys to healthy indoor air quality. Dehumidification is important too.
Featured Video
SawStop's Portable Tablesaw is Bigger and Better Than BeforeHighlights
"I have learned so much thanks to the searchable articles on the FHB website. I can confidently say that I expect to be a life-long subscriber." - M.K.
Replies
We're incorporated. It was easy and cost under $1000. It does take some maintenance, and you have to run a corporation carefully in order to maintain the protection. The risks in construction are high, and sooner or later you will have a problem, maybe a big one. I would rather have some level of protection for my personal assets.
Ditto. Any any accountant worth their salt should be able to tell you financially if you're better off or not. Incorporating saved me about $2500 a year in taxes. It cost $600 to file the papers. That pays for itself pretty quick. Obviously, that's not the only consideration, but it didn't hurt.
"If you pick up a starving dog and make him prosperous, he will not bite you. This is the principal difference between a dog and a man." - Mark Twain
generally speaking, you can get the same liability limiting characteristics from an LLC as you can with a corporation, and the LLC is easier and cheaper to manage. either way you go, you need to understand that these entities only protect you from liability caused by someone else, and you need to insure around those risks. if the homeowner falls in the basement because you forgot to attach the stairs, you're stuck. if your co-owner or crew did it, you're protected.
Its probably not a very good idea to operate a construction service company as a sole proprietor. Every thing you own and have worked for is at risk. That might be a good choice if your running a business with a very low chance of injuring someone, but not too wise for dangerous construction site type work.
If you do decide to choose a different entity, it's probably wise to consult your accountant for tax advice, lawyer for legal advice and insurance agent for insurance advice. After consulting with all of these, then you will be able to make an informed decision that is right for you. Everyone has different needs and goals, skills and abilities. You have to do what is a good fit for you.
blue
Juggling same decision.
Would be interested to hear what you decide to do and why.
Post me!
Read here--thought this was good info:
http://smallbusiness.findlaw.com/business-structures/corporations/corporations-s-corp-facts.html
Good luck, Pat
check the archives about this. it's been beaten to death. there are 4 options, not just sole prop or corp. There's llc/llp, subchapter s corp as well.
the next question is whether you should be making these decisions yourself or talking to an accountant.
the next question is whether you should do the work yourself or hire an attorney.
the answer to the first is that it all depends on your particular needs. No one else's story will be the same as yours.
the answer to the second and third is yes, hire the right people to offer the advice that you need. good advice is priceless. bad decision-making is expensive.
SHG
For every complex problem, there is a solution that is clear, simple, and wrong.
-H.L. Mencken
I found this informative link about inc, llc, llp, etc.-T