Success or Failure - Your Call
Meyring Law FirmAttorney at Law
With the stagnant malaise of 10% unemployment and the fall of the career employee, it seems more people recently are becoming “free agents” or independent contractors by choice or by force. As a free agent you may be hired temporarily by another; or you may be the person hiring free agents to help you deliver a product to your customers. Either way, there are some basics to know, so you can protect yourself.
Point: If you do something that earns a fee or if you make something that people buy, then organizing your activities into a business corporation is smart for professional, legal and tax reasons.
What do you think about a business partner paying an employee from the partner’s personal account? What about a charity represented by a person who says, “Just make out that donor check to my personal account…?” Neither scenario seems very professional. Rather, there is an immediate higher level of professional identification when a person represents their business dealings separate from their personal dealings. The personal/professional separation helps the public make a reasonable distinction between the person delivering the product and the business from which that product came. Once you grasp and achieve that personal/professional separation (or distinction) you can begin to build your professional image and brand identity.
The tax reasons for business incorporation are summed as follows: tax deductions, reimbursements, tax credits and perks; the legal reasons: liability protection. Meaning, if all else fails and the business becomes a money pit or serious liability, the financial disaster can be contained to just that business’s activities. The business incorporator’s personal assets are not “infected” and lost with the business liability.
For the full array of tax and legal issues relevant to your business, talk with a CPA or attorney. Like it or not, they are usually well worth the fee.
With the stagnant malaise of 10% unemployment and the fall of the career employee, it seems more people recently are becoming “free agents” or independent contractors by choice or by force. As a free agent you may be hired temporarily by another; or you may be the person hiring free agents to help you deliver a product to your customers. Either way, there are some basics to know, so you can protect yourself.
Point: If you do something that earns a fee or if you make something that people buy, then organizing your activities into a business corporation is smart for professional, legal and tax reasons.
What do you think about a business partner paying an employee from the partner’s personal account? What about a charity represented by a person who says, “Just make out that donor check to my personal account…?” Neither scenario seems very professional. Rather, there is an immediate higher level of professional identification when a person represents their business dealings separate from their personal dealings. The personal/professional separation helps the public make a reasonable distinction between the person delivering the product and the business from which that product came. Once you grasp and achieve that personal/professional separation (or distinction) you can begin to build your professional image and brand identity.
The tax reasons for business incorporation are summed as follows: tax deductions, reimbursements, tax credits and perks; the legal reasons: liability protection. Meaning, if all else fails and the business becomes a money pit or serious liability, the financial disaster can be contained to just that business’s activities. The business incorporator’s personal assets are not “infected” and lost with the business liability.
For the full array of tax and legal issues relevant to your business, talk with a CPA or attorney. Like it or not, they are usually well worth the fee.
*Robert S. Meyring managing partner of Meyring Law Firm offers free 10 minute phone consultations at 678-217-4369. The Firm’s practice areas include Litigation, Trusts & Estates and Business start up and support. The website at MeyringFirm.com has articles, details and planning forms. The Law Firm is located 200 feet east of the railroad crossing on Paces Ferry Road, Atlanta. MAP. The office is wheelchair accessible with elevator.
0 comments:
Post a Comment