Ask MetaFilter questions tagged with incorporate

I want to incorporate...So what's the deal with holding and shell companies?

emjay — Mon, 21 Sep 2009 10:11:20 -0800

I want to incorporate...So what's the deal with holding and shell companies? Yes, YANML and YANMA, I have appointments with a lawyer and a new accountant next week as I'm getting ready to incorporate and I want to educate myself before I meet up with them.

A recent Ask Me Fi Post What are the best books to read if I'm interested in incorporating a business? prompted me to consider other options.

A holding company is a bit different from an umbrella company, I understand this, but to what benefit is multiple layers of holding company(s)?

I just heard on the radio some type of public announcement for a radio station that had to declare it's interests (or something to that affect)

Radio Station WXYZ a subsidiary of f company, owner by g company, owned by h company, owned by holding company 1, owned by holding company 2, owned by holding company 3, owned by holding company 4, owned by holding company 5 and John Doe, owned by holding company 6, owned by holding company 7 and Jane Smith

ad infinitum

I eventually heard a total of 30+ holding companies, with occasional singles or groups of names thrown into the mix.

I think I can understand one or two layers for financial or insurance reasons, but What is the point of these layers? Is it very similar or different from a larger corporation breaking down the business into "Divisions" that handle different aspects? (Bob and Tom Corp, Outdoor Widgets Division, vs Bob and Tom Corp, Indoor Widgets Division)?

The main reason I ask is because I now run several small companies(sole proprietor) all doing fairly distinct business/services and all with their own websites and marketing but I'd like to expand a few of them in different ways like additional services or differentiated products based on the target markets. Incorporating everything and then breaking out into divisions was my initial plan. Would keeping them separate under a shell help in any way?

Since I do the majority of work and the people who work for me tend to all get paid from the same operating account, to what benefit is the holding or shell corp? (Everything I've done so far has been kosher for years with my old accountant and the IRS - unfortunately my old accountant is no longer able to perform his duties due to a serious illness) Could holding/shell possibly save me on taxes/insurance/etc?

Any other recommended reading or info?

Should I Do This, Inc.

Anonymous — Mon, 22 Jun 2009 19:31:01 -0800

Please help me figure out whether or not I should start a loan-out company as a working screenwriter. Background: I've been working in LA as a screenwriter for the past few years, having moderate success and making about 70 to 100 grand a year, though some years it has been as low as 58 grand. I was just hired as a staff writer at a studio for one year, and will be getting paid 150 grand. However it's just a one year deal. They just told me that I need to let them know ASAP if I want to set up a loan out company (for tax protection purposes) for when they pay me my weekly salary.

My question is, is it worth it for me to start a loan-out company? I might not make very much money next year, or the year after that-- this business is hard to predict. My previous accountant told me I shouldn't do it unless I was making at least 200 grand a year consistently, and I don't think that will happen for a couple more years at least, (if it happens at all.) I've heard there is a lot of paperwork, fees, and hassles involved with starting a loan-out, but I am not sure what those actually are and would like to know what I'm getting myself into. I am currently "between" accountants so I'm not sure who to ask.

On the other hand, being unmarried, childless, frequently "self-employed" and not owning a house has put me in a situation where I get taxed like crazy, and I'd be very interested in knowing just how much money a loan-out could stand to save me this year. Especially because 25% of my salary goes to my lawyer/manager/agent and as it is right now, I have to wait until my tax return checks comes in order to get the taxes back that I paid on their salaries.

Can anyone shed some light on whether or not it would be in my best interest to incorporate, seeing how I don't make 200 grand a year and have no way of knowing if I'll continue getting work or not after this year? I realize you are not my lawyer/accountant so no worries. Thanks!

Incorporate shipping in product price, or not?

adriana — Mon, 28 Jan 2008 11:14:13 -0800

I am soon opening a store selling backyard items, and wonder what would be best to do for shipping charges. Should I incorporate the shipping into the item price, or not? What are the pros and cons of each of the two methods? If you know where I can find data about the efficiency of either one of the methods, that would also be very helpful.

The shipping charges will be from $10 to hundreds, depending on the item.

Where should I register my company?

mateuslee — Tue, 09 Oct 2007 03:57:08 -0800

I'm going to register my company as an LLC. My next question is where? Which US state is the best for this?
I posted a Q here a few weeks ago, and you guys really helped me out (thanks!)

http://ask.metafilter.com/70013/A-new-business

I'm now curious about where you think I will be taxed the least and deal with minimal hassles. I heard good things about WY, NV, and AL - but a google search reveals only adverts and little data.

I think I can register in any state I choose to and the process of becoming an LLC seems like something I can do myself just via a state's website. If you have any experience with this, please share it. I'm really a newbie. Bonus points if you can indicate a trustworthy accountant in the state who can file taxes for the company once formed and do any legwork that I can't do myself. Cronyism/nepotism ok.

Thanks a lot!

Health insurance and taxes

bad grammar — Wed, 24 Jan 2007 13:36:03 -0800

How do I "incorporate under my business" for the purpose of deducting health care costs from my income as a self-employed person? How do you "incorporate under your business" if you are self-employed and wish to deduct your health insurance costs from your federal income tax? Last year I searched the IRS site for some information about this process, but it was not helpful.

Do I have to get a business license, develop a business model, etc.? I am a free-lance writer and temp, not an MBA.

I Google "business license" and find sites where you have to pay upwards of $175 for a license, but some of these sites look dodgy.