Ask MetaFilter questions tagged with incorporation

Is there a reference / rule-of-thumb etc. that would show me when I need to display the “Incorporated” status of my business?

jseven — Mon, 07 Dec 2009 11:21:32 -0800

I have recently incorporated my business. My question is does anyone have experience regarding how I now need to refer to my business in print and online? To make matters a little more complicated I used my url in my company name to drive traffic to my website since my business will be primarily web focused. So my official incorporated business name is something like “MyFakeBiz.com Inc.” Again, I wanted the .com as part of my companies name so any press release includes my business name and when people talk about it they automatically talk about the website. (Like MoveOn.org)

The question is I know to maintain incorporation protection I have to clearly let people know of my incorporation status. Most people do this with “MyFakeBiz LLC”, or “MyFakeBiz Inc”, etc. I would rather not have to have the “Inc” part in certain instances. Like logos, references to my business name on my website, those kinds of things.

As a point of reference, I have looked at several websites of large businesses (Google.com, Pepsi.com etc.) there is no reference to the corporate status of the company on those websites.

Is there a reference / rule-of-thumb etc. that would show me when I need to display the “Incorporated” status of my business?

What are the best books to read if I'm interested in incorporating a business?

christopherbdnk — Sun, 20 Sep 2009 09:07:21 -0800

What are the best books to read if I'm interested in incorporating a business? In this I'm interested in more legal-oriented books (taxes, finding a CPA), as well as general advice/best practices. Additionally, I'll ask for a small bit of advice here:

Is it worth hiring a CPA from the start, or is this something we should think about in the future? I'd like to handle as much of this on my own as possible, but I'm also mindful of my own limitations, both with hours and expertise. Also, around how much should I expect to pay a lawyer for an initial consultation?

Startup my Startup

jasondigitized — Wed, 24 Jun 2009 10:47:04 -0800

I am thinking about incorporating my web-based software startup. First, I am not sure if it makes sense to incorporate. Second, if I do incorporate, I am not not sure where in the world ( not just the U.S. ) I should incorporate. I may soon be leaving my corporate gig for a while to spend some time developing web based software that I eventually hope to sell through licenses or subscription fees. I will ONLY be selling web-based software. There will not be a physical product. Some of this software would store confidential information. I will most likely be hosting the software on Amazon or Google's infrastructure.

Does it make sense to incorporate? I will be spending money to do this right ( home office, marketing, graphic designer, possible travel, etc. ). I would like to be viewed as credible by my customers. Because I will be storing confidential information, I assume there is some liability.

Secondly, if I do incorporate, where should I do so? Right now I am living in Bermuda with a permanent address in Michigan ( my parents ). I could be selling software to anyone in the world. My product will be hosted somewhere out in the cloud. Does it make sense to incorporate in my home state of Michigan, the good old standby of Delaware, another state, or another country all together, i.e. Cayman Islands, Costa Rica, Singapore, etc.

I am not too concerned about LLC vs. S-Corp vs. Partnership. Ultimately, I want to boost my credibility, maximize my profit, offset my losses, and stay out of jail.

Sgould I become a limited company? (UK)

hatmandu — Thu, 30 Oct 2008 04:15:56 -0800

I've been a sole trader for 10 years, but calculators such as this suggest I could save maybe £2000 a year on tax by becoming a limited company. Have others found it worthwhile? I'm aware the incorporation means more paperwork, as I'm already a director of another small company, though that's largely defunct now. As far as I understand it there are two main options for income in this way:
1. Draw a salary
2. Draw dividends. The site mentioned above suggests a salary of around £5000, and taking the rest as dividends as the way to minimise tax burden.
Does anyone know if it's legal/sensible to go down a third route:
3. Subcontract work to oneself as a sole trader. (ie so corporation tax is only paid on profits above the costs of subcontracting and other expenses, and I would pay normal personal tax on the profits from the contracts.) Or is this not allowed? Or too complicated?

I'll need to talk to an accountant about all this, of course, but any relevant experiences would be interesting to hear. (I'm below the VAT threshold, by the way.)

How can I work anonymously?

Anonymous — Wed, 04 Jun 2008 19:55:48 -0800

I have a good deal of experience as a phone sex operator. Recently, I decided I would like to go into business for myself rather than work for an agency. I don't think it's legally possible to incorporate anonymously, but still I'd like to keep my real legal identity as private as possible. Any tips? I'd like everything to be on the up-and-up financially/legally speaking, but since the phone sex business encourages obsessive behavior, it's absolutely crucial to hide any/all identifying information about me from even the most persistent clients. Is there any way for me to safely/legally go independent? Or am I doomed to give up more than half my income to a middleman forever?

Best on-line account for a startup?

Anonymous — Tue, 18 Mar 2008 02:17:59 -0800

Startupfilter: best on-line account for a small US business? Looking for recommendations for an online bank for a small US (CA) corporation. Cutting to the chase, is the ING/Orange business account a good idea?

Background:

I recently started a small consultancy / software business (S-Corp incorporated in California). We're small and don't have much in the way of cash coming in or going out, we just need a place to put money when we invest it into the company or eventually receive funds from customers, and a place to take money from when we pay contractors (and eventually pay ourselves).

Key features I'm looking for:

- web accessible (duh). I want to do everything online.
- no annoying fees
- competency
- compatiblity with Quickbooks Pro

Tips from the hive mind appreciated, whether about ING/Orange or other web accessible small-business-friendly banks.

I've reviewed these previous AskMeFIs - looking for updated suggestions and web-only bank tips.

Incorporation in Nevada benefits outweigh disadvantages?

KimikoPi — Sat, 01 Sep 2007 22:44:46 -0800

I'm thinking about incorporating in Nevada for a business I will operate in CA for the tax benefits. Do you know of any disadvantages to incorporating in Nevada but working in CA?

Online incorporation services

jazzkat11 — Wed, 25 Oct 2006 10:05:10 -0800

Using an online incorporation service: recommendations? As usual for a paying service, the google provides a myriad number of operations that are a bit of information overload. Who have you used, can recommend, or have heard good things of?

help me help the man

luriete — Fri, 08 Sep 2006 09:55:59 -0800

I'm trying to make my new web project legal in California. After reading through the Nolo press book(s), we thought that perhaps the LLC was the best corporate structure (we are going to issue stock and give the primary developer a portion in lieu of payment). While the Federal government taxes LLCs like sole proprietorships - you aren't taxed unless you make profit, and I don't see our profit outpacing our costs for a year - the State of California charges an LLC "tax" (really a fee) of $800, due almost immediately after your incorporation paperwork goes through, so... Is there a way to legally put off the incorporation until we can afford to exist as a corporate entity? If we have $799 in startup costs before then, can we defer the deduction of those until after we incorporate and pay the $800? Is the $800 in California state tax fee deductible as a business expense on our federal return?

I'd like to consult an attorney but of course cannot afford to, as this project is, at least during its early development, on a shoestring budget. Any suggestions on other tax resources for small businesses?

Advice for recovering long-overdue debt

allterrainbrain — Wed, 05 Jul 2006 07:07:18 -0800

I'm trying to recover a debt owed to me (currently $1300+) by a client for whom I worked as an independent tech contractor in 2002-03. He's very slowly paid off a lot of the original debt ($5000), but he stopped making the payments almost two months ago with no explanation, and has been completely non-responsive to all my contact attempts ever since. It's a matter of very high personal importance that I recover the full debt in this case (because this is a very slimy guy, and because his company could not have started up or earned money without my work). I also need the money, so this is not something I can walk away from in that sense either. Thank you for reading and for any advice you have... I'm way out of my depth on this one (I've been researching it as much as I can).

The debt started out as $5000, plus 5% APR compounded monthly in the event any of it was not paid, payable in full on August 11, 2003. After an intense amount of pestering on my part (and perpetual claims of having little/no money on his part), the debtor finally started a $74/week payment plan, which he stuck with somewhat consistently, and he's now paid me about $4300, meaning he currently owes $1300+ with interest (I haven't done the math yet -- it'll be complicated due to the erratically timed payments).

There's a good existing thread about a similar issue, but the assumption in that thread is that the creditor cares most about how *much* money can be recovered after commission fees. I care most about the *likelihood* of recovery (for example, I would be okay with the solution that costs much more in commission but has a much higher chance of success).

Finally: the geography is complicated, which might really complicate a court case (I've never been involved in any court case; that suspicion is from my research).
- This guy is the CEO of a small LLC that was incorporated as a "virtual" (web-based) company in Nevada and has had business addresses and operations only in NY and FL.
- My work for him was performed primarily at my home in NYC, secondarily at his offices in western NY and FL.
- We were in FL when we signed our contract re. the payment (although I'm not sure either of us has a way to prove that). His address and mine on the contract are both NY state addresses (mine in NYC, his in Allegany County). Our contract does NOT specify the state in which disputes should be litigated.
- All of his payments to me have been via PayPal and all our documentation/correspondence except the paper contract has been via email. I don't know his current business or home address.
- I do know he's done a very haphazard job of keeping his personal and corporate finances separate (and ALL his emails about why he couldn't pay me referred to his personal finances), so "piercing the corporate veil" should be easy; however, he has mentioned repeatedly (I have no way to know if this was a lie) that he is near personal bankruptcy.

Whew!

Little bits of paper with monetary value...

killdevil — Mon, 22 May 2006 19:08:13 -0800

How can I deposit a check made out to an as-yet-nonexistent business entity rather than to me personally? I operate as a freelancer under a particular "business" moniker ( "Acme Development," for sake of argument). I haven't yet gotten around to establishing an LLC or a corporation with that name. Despite instructions on my invoices indicating that checks should be made payable to me personally, a client has mailed a check payable to "Acme Development." Can I get my bank to deposit this somehow, or do I need to get the client to reissue the check?

I'd prefer to avoid asking the client to reissue the check, if possible.

Business-starting for idiots

medusa — Wed, 17 May 2006 17:39:38 -0800

I have several questions about starting a business. For some time I have been considering starting a part-time side business as an outdoor educator/mountain guide. I have been considering forming a corporation to limit my personal liability if someone got hurt and sued me, and to allow deductions for guide training and certification (an expensive process).

However, I know very little about the legal and tax implications of forming a business. (I have read this and this.) Further information: the business would only involve me (for the forseeable future) and would not necessarily make money for years.

Some specific questions:

Is forming an LLC a good idea?

Can I deduct training/certification expenses even if I don't yet have any revenue? Is there any benefit to me "lending" the business money to get it started, so the corporation then officially owes me money?

Is there anything I should know about doing this in Colorado specifically?

What are good resources to learn more about all this?

Hobby that has grown into something more seeks advice on making it formal.

Medieval Maven — Sun, 14 May 2006 20:03:06 -0800

My husband, a friend and I have started a community theatre group. We're in the midst of our first show, and we've gotten great publicity and we're getting healthy first-time audiences. We want to keep doing this, but we think we need to incorporate (become an LLC, LLP, something) before we get in too far. A lot . . . The long of it is this: our current run is basically a test to see how things will go, and things have gone extraordinarily well. We are operating under the auspices of a particular city at the moment, and futhermore, we are using the grounds of a local historic building for the shows. We are taking donations, but with the caveat that they are going to the upkeep of the building/grounds and possibly to future shows (That is, the $$ goes directly to the historic building people, and then we get back what they want to give us in the form of a stipend, maybe. We aren't guaranteed anything as yet.)

However, given that things are going quite well and we want to remain independent and not tied to this particular city government, we want to possibly incorporate and/or become a 501(c)(3). We have the very good possibility of pro-bono legal work for any of this, so the cost of that isn't necessarily an issue. The issue is that we're not 100% sure what the best choice will be for a three-person operation that will decidedly NOT make money for the foreseeable future. Also, people keep offering us money/services and we want to be able to take advantage of that -- seems as if we would want to be a nonprofit, but I'm just not sure that this is the best choice for the long run, and I'm under the (possibly mistaken) impression that we really only want to have to do this once. We are, in short, looking for information about doing this kind of thing (I've read the IRS stuff on 501(c)(3)) and any practical, nonbinding, clearly not-offered-as-legal-advice information on how we might like to proceed.

Why should(n't) I officially start a business?

cortex — Tue, 28 Mar 2006 15:24:40 -0800

What are the advantages, disadvantages, and Important Things To Know about officially starting a business? I am doing a thing on the web right now. I have made a very, very small amount of money off of it, but I'm seeing the possibility of making more.

I know nothing about the mechanics of officially establishing a business. Incorporating may be the word I'm looking for—taking Cortex Doing Some Stuff and turning it into Cortex Productions, Inc..

I'm in the United States. I'm a one-man operation working out of my kitchen in my spare time. Check the profile if you need to see the site for context.

I have minimal costs, but I am spending a little money—web hosting, musical equipment and software, (tiny, experimental) advertising expenses.

I have minimal revenue (very modest Adsense revenue from modest daily traffic) but hope to improve that—through merch sales; site donations; I'm talking to someone about licensing music from the site, too.

So should I jump through hoops and create, say, Cortex Productions Inc? Why should I? Why not? When should I? Are there distinct tax benefits to be had at this point? Deductions for business expenses, capital, etc? Incentive to have any income going to a business rather than my personal checking account?

Enlighten me!