Wim: Talk to your lawyer again. It is exactly the same for a C corp as an S corp in terms of personal liability. The major and compelling difference between the two is the tax advantage of "flow through" available as an election under the S status, rather than being double taxed (corporate taxes and personal income taxes). Both structures otherwise work similarly in the context of personal legal liability in the face of damage or ensuing litigation. -----Original Message----- From: Willem Blees <wimblees at aol.com> To: pianotech at ptg.org Sent: Wed, 19 Mar 2008 11:23 pm Subject: Re: Incorporation questions -----Original Message----- From: paulrevenkojones at aol.com To: pianotech at ptg.org Sent: Wed, 19 Mar 2008 6:04 pm Subject: Re: Incorporation questions Wim: That bit of information is dead wrong. The benefit of the corporation in this instance, or LLC for that matter, is that it stands as the "body", legal entity in place of you. A person's personal assets are protected, and the assets of the corporation are those that are vulnerable in a suit. Paul if you did do something wrong, a customer could sue you?AND the corporation Paul >From what I remember, that might be true of a regular corporation, but not?with an S-corp. Again, that is what I thought my lawyer told me, and I could be wrong. The only real advantage of the S-corp is the tax angle. But as I said before, the reason I didn't go that route was because of the cost of setting it up, and the additional accounting fees?it?would?have to pay. And it was the accountant?that brought that to my attention. Wim -----Original Message----- From: Willem Blees <wimblees at aol.com> To: pianotech at ptg.org Sent: Wed, 19 Mar 2008 8:22 pm Subject: Re: Incorporation questions Geoff Have you asked your lawyer about the liability situation. I don't remember the details but if?I recall, it doesn't do any good for you to?be incorporated, because if you did do something wrong, a customer could sue you?AND the corporation. What will protect you is?to put your house, savings, etc. in both?you and your wife's name.?As long as it is jointly owned, it can't be touched. At?least that is what I remember. But check with your lawyer on this. ? Willem (Wim) Blees, RPT Piano Tuner/Technician Honolulu, HI Author of The Business of Piano Tuning available from Potter Press www.pianotuning.com -----Original Message----- From: Geoff Sykes <thetuner at ivories52.com> To: 'Pianotech List' <pianotech at ptg.org> Sent: Wed, 19 Mar 2008 11:59 am Subject: RE: Incorporation questions ? William -- ? I am doing this for the same reason. Less taxes and?more income through dividends. My accountant has offered to take me through the second step, converting the corporation to an S-Corp, but I think he is resisting getting involved before that. Perhaps I should just ask him outright if he would be able to accomplish what your accountant did for you. That would be ideal. ? The concept of issuing, but not selling, stock for a company that has but a single board member, the owner, seems way too complicated to me. But then taxes and the government were never meant to be easy. ? Thanks for the tip on your banking. I was concerned that I would actually have to have my customers write out checks payable to Blah-Blah-Blah, Inc. Knowing that they can still write them out to me as long as I deposit it in the business account is nice to know. ? -- Geoff Sykes, RPT -- Los Angeles ? ? ? ? ?-----Original Message----- From: pianotech-bounces at ptg.org [mailto:pianotech-bounces at ptg.org] On Behalf Of William R. Monroe Sent: Wednesday, March 19, 2008 6:08 AM To: Pianotech List Subject: Re: Incorporation questions Geoff, ? I, in large part disagree with some of the other responses.? I know for me being an S-Corp has been significantly beneficial on a number of fronts no the least of which is that I keep much more of my income every year (pay less payroll, collect some dividend).? Of course, I'll assume you've figured this already as you don't seem to be asking if Incorporation is worth it, just how to do it. ? My Accountant took care of the entire process for me: filing the papers for stock issuing, establishing the board (all one of me), Filing the business name papers, etc.??I never once worked with an attorney that I recall.? Perhaps my accountant did on my behalf I don't know. ? My clients write checks either to my business name (I have established both Checking and Savings accounts for the business) or to me.? Doesn't matter.? What matters is that you deposit all those checks into your business accounts first as a matter of course. ? As far as paperwork goes, for me it really doesn't amount to much work.? I file some quarterly reports and of course annual filings - which my accountant handles.? The additional paperwork is maybe an extra hour per quarter. ? Hope that helps some. ? William R. Monroe ? ? ? SNIP ? Today's questions are directed to those?among you?who have?actually gone through the process of starting a corporation and then converting it to an S corporation. ? : What, exactly, is the process? : Did you do it yourself, or did you hire an attorney? : Changing from Sole Proprietor to Corporation, how do you cover the question of stocks and board meetings? : What about creating a business "name" that ends in Inc., Corp., or Ltd.? To whom do your tuning clients write their checks to? ? I've found all the forms. And even though there are only about three really basic items being asked for on them,?I find myself overwhelmed with questions and procedures regarding?the?process of actually acquiring and/or creating?those items. ? So I guess my only real question is: How did you do it? ? -- Geoff Sykes, RPT -- Los Angeles Planning your summer road trip? Check out AOL Travel Guides. Planning your summer road trip? Check out AOL Travel Guides. Planning your summer road trip? Check out AOL Travel Guides. -------------- next part -------------- An HTML attachment was scrubbed... URL: https://www.moypiano.com/ptg/pianotech.php/attachments/20080320/d1910e65/attachment.html
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