incorp,or self prop

[beachbum20714]

hey frank,when starting out should i open a separate account for expediting?should i incorporate,or stay self prop?if incorporate then should i go,LLC,S CORP,C CORP,what is the best bet.i know its probly up to me but i wanted to know the diff between the diff corp titles.i have not talked to my accountant as of yet.well i did but she is a little busy at this time,and i guess you are as well.i know if i opened a separate checking account,i can have a check card so that way i can keep track of records a little better.wouldn't have to write checks to much.and also easyer to get cash when i need it.any help would be appreciated.

 

[Crazynuff]

I was listening to Dave Ramsey on the radio a few days ago and he had a tax expert answering questions . You MUST have a seperate account for your business . Make sure every dime you earn for business is deposited there . If IRS does an audit it's too easy to disallow deductions when a personal account is used .You're right about a check card - it does make thigs easier . I have my business account at the same bank as my personal account and can transfer funds to my personal account with online banking .

 

[Fkatz]

beachbum20714




Member since Oct-2-05
28 posts
Rate this user "incorp,or self prop"
Feb-11-06, 02:32 PM (EST)
hey frank,when starting out should i open a separate account for expediting?should i incorporate,or stay self prop?if incorporate then should i go,LLC,S CORP,C CORP,what is the best bet.i know its probly up to me but i wanted to know the diff between the diff corp titles.i have not talked to my accountant as of yet.well i did but she is a little busy at this time,and i guess you are as well.i know if i opened a separate checking account,i can have a check card so that way i can keep track of records a little better.wouldn't have to write checks to much.and also easyer to get cash when i need it.any help would be appreciated.
EARL TASSA





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Crazynuff




Member since May-8-04
419 posts
6 feedbacks
12 points 1. "RE: incorp,or self prop"
Feb-18-06, 05:50 PM (EST)
In response to message #0

I was listening to Dave Ramsey on the radio a few days ago and he had a tax expert answering questions . You MUST have a seperate account for your business . Make sure every dime you earn for business is deposited there . If IRS does an audit it's too easy to disallow deductions when a personal account is used .You're right about a check card - it does make thigs easier . I have my business account at the same bank as my personal account and can transfer funds to my personal account with online banking .



To Beachbum 27014 and Crazynuff.

Crazynuff answered this question for me, Yes it is very advisable to open a separated checking account for the business only. this way it is not mingled with your personal and is a lot easier to prove your business deductions

Frank

 

[Fkatz]

Beachbum20714,

right now I would suggest to you to just be a sole propreitor until you know that this is going to be your life, that is being on the road.

For you to form a LLC, "S" Corp or Corp I would not suggest it right now. See how it goes the first year or two before you decide to incorporate, it is very expense first of all in the neighborhood of aound $500 [plus there is a lot of problems with it right now.
first of all your have to make out a payroll for yourself from the corp.
Pay federal, state, unemployment tax, Carry Workmen Comp (the cost of this depends on your gross income, not net. and based on where you are located. the premimun for this alone will be over %5,000 oe more per year. depending on your gross income.

and the protection from harm in a corporation is only if you do not use your personal investment into it. meanisn that the deposit,for the truck comes from not using your house as collateral for the loan, otherwise there is no protection in forming a corp.

If you have any other question concerning a Corp Speak to an Attorney, I am not an expert in this area, do not give out any personal informtion out. Just find out which way do you think that you should go.

In the book at {www.partners-in-business.com]this will give you a better idea as to what you want to decide to do.

Frank.

 

[ATeam]

I agree with Fkatz. There is no rush for one-unit owner/operators to incorporate. The protections some people attribute to incorporation simply are not there for a one-unit owner-operator or team who drives his or her or their own truck. This is a conclusion Diane and I reached after doing our own research on the topic, and after consulting with the top CPA at a business services compay that specializes in serving owner/operators. This company has thousands of clients. They and Frank think alike on this issue.