Читать книгу The Consulting Bible - Alan Weiss - Страница 25

There are three basic options for incorporation or creating a legal business entity. You will occasionally hear from people who will tell you that you don't have to incorporate. Shun them—they are fools. You will, rarely, hear from a lawyer who will tell you that it's not necessary to incorporate.

Call the ethics committee of the bar association!

You incorporate to create a legal entity that can protect your personal assets, form a firewall to protect you, independently borrow money, create certain tax advantages, and enable you to do business with major clients.¹

Always use an attorney and tax advisor who are profoundly well versed in small, professional services firms. Do not use someone who has helped close on your house, done your will, and is related to you in any way closer than seventh cousin, twice removed. (If it's illegal to marry them in your state, you shouldn't use them as advisors.)

Three types of entity:

1 Chapter C. This is the standard corporation in the United States, like Microsoft or United Airlines. I once favored it because there were benefits and tax advantages, but later laws have removed them. Since you have to empty a Chapter C corporation of all cash before year‐end or risk being taxed twice on the same revenue (once in the corporation and once when you take it as salary or bonus), it's no longer the best alternative for solo practitioners or small firms.

2 Subchapter S. In this form, all company revenues flow through your personal tax return. It is neat, simple, and efficient. There is no need to empty accounts, though you should maintain separate business and personal accounts and keep careful records of paper trails. One of my clients was a $1.5 billion, privately held construction company that was a Subchapter S corporation.

3 LLC. Limited liability companies (LLCs) are best for partnerships within a corporate structure, but in some cases a one‐person LLC may be allowed. Owners here are members of the LLC and take shares, which do not have to be equal. It is a very popular and effective form, and is often used when one entity rents or leases to another (e.g., office space).

Your attorney and tax advisor can tell you what your options are for your state, personal objectives, amount of business, and benefits. Make sure that you maximize in your company's bylaws the kinds of deductions that are permitted because you want to pay for everything you legally can with pretax, not after‐tax dollars. If you take the risks of entrepreneurialism, you ought to reap the rewards. Making $250,000 as a solo practitioner can be the equivalent of making $350,000 on someone else's payroll and tax structure.

Possible deduction examples:

 Noninsured medical expenses

 Certain club memberships

 Home office

 Business equipment

 Communications devices

 Professional development

 Travel accessories

 Remote technology

 Specialized clothing

 Certifications and licenses

 Board meetings (which could be you and your partner)