[bluebird]

would it be better to have my bussiness as a corporation or a sole propietor if i had it under the corporation i could pay my self and tax myself and give myself a w-2 at the end of the year it would be like i'm working for my corporation.

[Fkatz]

Very Sorry for not answering you sooner,

I have been working on extensions since the tax filing deadline had expired.
Your question was basically ("SHOULD I INCORPORATE")would it be better to have my bussiness as a corporation or a sole propietor if i had it under the corporation i could pay my self and tax myself and give myself a w-2 at the end of the year it would be like i'm working for my corporation.


IT IS TRUE THAT BY PAYING YOURSELF AND TAKING THE TAX OUT OF THE ON A W-2 AT THE END OF THE YEAR WOULD BE ADVANTAGIOUS TO YOU BUT THE OTHER PROBLEMS INVOLVED BY BEING A CORPORATION WOULD BE.

A. PAYROLL TAXES
B. UNEMPLOYMENT TAX
C. STATE UNEMPLOYMENT TAX
D. WORKMENS COMPENSATION IS A MUST WHICH HAS TO BE CARRIED, YOU CANNOT USE THE OCCUPATIONAL INSURANCE THE LEASING COMPANY HAS.
E. VERY POSSIBLE DOUBLE TAXATION WHICH IS MORE LIKELY THAN NOT.
F. MUST HAVE VERY ACCURATE RECORDS FOR ALL INCOME AND EXPENSES
G. COMPLETE ALL SEPARATE INSURANCE IN THE CORP. NAME LIABILITY, VEHICLE, WORKMEN COMP. ETC.

INOTHER WORDS YOU HAVE TO HAVE A DUPLICATE OF EVERYTHING WITH A CORPORATION.

BY BEING A SOLE PROPREITOR, YOU CAN STILL PAY YOUR SELF AND TAKE THE TAX OUT, MAKE OUT W-2 TO YOUR SELF AND PAY THE TAXES DUE,
EVERYTHING ELSE IS BASICALLY THE SAME EXCEPT FOR CORPORATED LIABILITIES.
IF YOU USE YOUR HOME, OR ANYOTHER ASSET, TO FINANCE THE TRUCK, IT IS NOT PROTECTED BY THE CORP.

ANY CASH WITH DRAWN FROM YOUR MONEY MARKETS, CD, OR THAY TYPE OF ASSET THEN IT YOUR HOUSE WOULD BE PROTECTED IF GOD FORBID ANYTHING HAPPENS(FATAL ACCIDENTS


fRANK)
fRANK