Im considering incorporating my website and I will definitely be speaking with an accountant regarding the matter. I don't want to waste his time or mine so I want to know which questions to ask him and what information to have ready. I'm thinking yearly revenue, number of employees, location, etc - stuff like that. Any advice?
What questions should I be asking myself/the accountant when incorporating?
- Thread starter CLKeenan
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U dont need an accountant. I just did this today, go to your sec of state website, file for incorporation online, go to the IRS site, file for an S-corp, then go to your bank and open a corp checking - THEN talk to an accountant so u can get max write offers and retirement contributions.
You don't incorporate your website. You incorporate your BUSINESS. Years back you had to be fairly specific in your Incorporation. Times have changed. Your corporation and participate in any lawful business.
So your corporation could include the creation of websites and other business entities. The IRS requires a SIC code. But what you can do within your corporation in terms of generating income is pretty flexible.
And while you could do this yourself you might want to ask yourself if you are an expert on incorporation first? Answer?
There is a lot to know. You'll need to file a lot of paperwork and you'll have to have it filed by a specific time each month. Things like Federal Unemployment Tax most people have never heard of. You'll be writing checks to places for taxes you might not even know exist.
You are on the right track with going for expert help, but what you need to do is not create a list of questions to ask, but to CREATE a list of things you want to do with your business present and in the future. Then you take a notepad and you listen.
I have an accounting firm that does all my bookkeeping. I used their referral to an Attorney to file my paperwork. Each state varies in what is required. It's pretty typical to pay the Attorney about $500 to do all the filing for you. And then you add on the incorporation fees. The attorney will advise you as the the best corporate structure for your business plan. It's money well spent.
The reason you incorporate is twofold:
1. Liability Protection
2. Taxes
The type of corporate structure you choose "LLC, Subchapter S, C Corp" will determine how your are taxed.
So as you can see it's not always a wise decision to do it yourself. You could find yourself paying for that decision down the road.
If you make less than $30,000 from your business it's probably not worth incorporating from a Tax Liability Standpoint. But it's always worth protecting yourself from lawsuits.
So your corporation could include the creation of websites and other business entities. The IRS requires a SIC code. But what you can do within your corporation in terms of generating income is pretty flexible.
And while you could do this yourself you might want to ask yourself if you are an expert on incorporation first? Answer?
There is a lot to know. You'll need to file a lot of paperwork and you'll have to have it filed by a specific time each month. Things like Federal Unemployment Tax most people have never heard of. You'll be writing checks to places for taxes you might not even know exist.
You are on the right track with going for expert help, but what you need to do is not create a list of questions to ask, but to CREATE a list of things you want to do with your business present and in the future. Then you take a notepad and you listen.
I have an accounting firm that does all my bookkeeping. I used their referral to an Attorney to file my paperwork. Each state varies in what is required. It's pretty typical to pay the Attorney about $500 to do all the filing for you. And then you add on the incorporation fees. The attorney will advise you as the the best corporate structure for your business plan. It's money well spent.
The reason you incorporate is twofold:
1. Liability Protection
2. Taxes
The type of corporate structure you choose "LLC, Subchapter S, C Corp" will determine how your are taxed.
So as you can see it's not always a wise decision to do it yourself. You could find yourself paying for that decision down the road.
If you make less than $30,000 from your business it's probably not worth incorporating from a Tax Liability Standpoint. But it's always worth protecting yourself from lawsuits.
The amount of time saved and paperwork I don't have to fill out makes paying my Accountant worth many times what he charges. Focus on your core competency, which for most is not accounting.
Let's back up.
INCORPORATE. if you can afford to do so, it is definitely the best way to protect yourself.
some questions to ask:
Corp (C or Sub S) or LLC?
(Probably LLC)
Does your state require publication? (this means you must put ads in the newspaper informing the public about the LLC formation. if so, the startup costs for an LLC will be significantly higher, depending where you live.)
You could also potentially be better off with a corporation as opposed to a sole-proprietorship for purposes of obtaining loans, leases, and business credit lines.
INCORPORATE. if you can afford to do so, it is definitely the best way to protect yourself.
some questions to ask:
Corp (C or Sub S) or LLC?
(Probably LLC)
Does your state require publication? (this means you must put ads in the newspaper informing the public about the LLC formation. if so, the startup costs for an LLC will be significantly higher, depending where you live.)
You could also potentially be better off with a corporation as opposed to a sole-proprietorship for purposes of obtaining loans, leases, and business credit lines.
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