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To Incorporate or Not To Incorporate??

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  • To Incorporate or Not To Incorporate??

    I had a slight accident today with a guy on a pedal bike riding against traffic, hidden by parked cars Moments after I cleared my head, my first thought was to incorporate The locals here in so cal know my intentions and I am curious about opinions. Thanks, Robert
    sigpic

    Robert

  • #2
    Re: To Incorporate or Not To Incorporate??

    The best thing incorporating provides is protecting your personal assets . As a sole proprieter not only can your company be sued but you and your wife are liable as well. The disadvantage of incorporating is the legal costs to start-up and of course the tax structure changes where you will most certainly need an acct. on a quarterly basis .

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    • #3
      Re: To Incorporate or Not To Incorporate??

      You might want to contact the local DA's office about becoming a LLC. Most likely you'll need a lawyer to help with the *&^%# and filing of papers. Over here in the Mid Atlantic it seems that more and more small companies are going for LLC rather than to fully Incoporate. I'm no lawyer and thus can't help with this. I can say that small medical groups are going for it. You'll also see PLLC. As best as I know a PLLC is a Private LLC. LLC = limited liability company. Good luck with this and I hope you have good insurance.

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      • #4
        Re: To Incorporate or Not To Incorporate??

        Once my business gets up to speed, I am thinking about incorporating just to cover my assets. The absurd amount of lawsuits against small business in Ca. pretty much makes it nessesary. But, not being a lawyer myself, I'd have to do some more research.
        Jack

        I've learned a lot from my past experiences.
        I've learned nothing from my passed experiences.

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        • #5
          Re: To Incorporate or Not To Incorporate??

          Originally posted by Woussko View Post
          You might want to contact the local DA's office about becoming a LLC. Most likely you'll need a lawyer to help with the *&^%# and filing of papers. Over here in the Mid Atlantic it seems that more and more small companies are going for LLC rather than to fully Incoporate. I'm no lawyer and thus can't help with this. I can say that small medical groups are going for it. You'll also see PLLC. As best as I know a PLLC is a Private LLC. LLC = limited liability company. Good luck with this and I hope you have good insurance.

          LLC's are unable to be furnished a contractors licenses here in california, if I remember the law correctly. But thanks for the info
          Last edited by westcoastplumber; 06-11-2007, 08:52 PM.
          sigpic

          Robert

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          • #6
            Re: To Incorporate or Not To Incorporate??

            Lawyer: Professional liar and full time thief

            Be careful as most of them only care about two things. First is "Makka Da Money" meaning making lots and lots of money, and second everything will be done their way or it will be done no way. They would sell family members as slaves for the right price. Maybe you'll be lucky and find that one special lawyer that actually cares about more than just two things.

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            • #7
              Re: To Incorporate or Not To Incorporate??

              As weird as it sounds my plumbing shop was always as a sole proprietor. All of my other businesses were Corporations but my plumbing business never was. When I started my business I made two business decisions. The first was to never collect money up front as I wanted my customers to want to pay me and never to Incorporate. I figured if my butt wasn't on the line I didn't care enough about my customers. After 20-years in business I was never sued and I only had to take one customer to small claims court. Of course those were different times.

              My suggestion would be to not convert your license to the Corporation but to keep your license separate and use it to RMO the new license. Your number is so high anyways at this point I don’t think a few thousand higher will matter.

              Mark
              "Somewhere a Village is Missing Twelve Idiots!" - Casey Anthony

              I never lost a cent on the jobs I didn't get!

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              • #8
                Re: To Incorporate or Not To Incorporate??

                West Coast, I would not worry about incorporating right away. Thats what you're insurance is for. It doesn't really matter if you are Incorporated or not in the beginning as you will not have enough assets for it to matter. Make sure you have a good insurance policy. I would say at least 1 million on personal property and 250 thousand on physical injuries. If you can afford more great. Being Incorporated is great ,but the corp is only as good as your separation or cooperate shield. In your first year you are going to have enough to worry about.
                THE GLASS IS ALWAYS HALF FULL

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                • #9
                  Re: To Incorporate or Not To Incorporate??

                  Everyone hates Lawyers until they need one.
                  THE GLASS IS ALWAYS HALF FULL

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                  • #10
                    Re: To Incorporate or Not To Incorporate??

                    robert sorry to hear about the mishap. hopefully everyone is more shook up than hurt.

                    i have an auto insurance policy that covers me for 750,000. hopefully that is enough for any mishap. my liability insurance is 1million/2million. keep in mind this is with no employees and a non blemished track record.

                    with employees, i would have an unbrella policy. also you need to make sure you have the proper auto insurance for commercial operations and a ca# for the highway patrol.

                    rick.
                    phoebe it is

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                    • #11
                      Re: To Incorporate or Not To Incorporate??

                      Robert,

                      Do not get railroaded. Based on your short discription the same thing happened to me a few years back. A bicycle has to follow the same rules of the road as a car. In my case I was able to have the police report CHANGED to absolve me of any blame. I had to do a little research and the police didn't like it but facts are facts. I wound up with no blemish on my driving record but AAA still threw $1800.00 to the "victim" and his lawyer to have it go away. I protested that it just encourages scumbags to sue, AAA said it just made economic sense.

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                      • #12
                        Re: To Incorporate or Not To Incorporate??

                        I think you should consider Incorporating, It give a little protection from being sued personaly. It cost me less than 700 dollars to do. I use a accountant anyway, to keep IRS happy. Insurance of 1 million dollar coverage, just because this is a sue happy world. I really see no disadvantage to being incorporated.

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