maxheadspace
Novice
Oct 16, 2005, 7:09 PM
Post #4 of 4
(1440 views)
Shortcut
|
|
Re: [Carolyn Hudgins] Incorporation ???
[In reply to]
|
Can't Post
|
|
 I can't give you legal advice, but having been affiliated with both incorporated and unincorporated businesses, I think you have the right frame of mind, Carolyn, regarding incorporation. A main benefit from incorporating is the shield it provides you for liability, not as a means of easing your tax burden. If you incorporate as a C corporation, you would likely be taxed twice, once as the corporation, and once as yourself. If I recall correctly, an S corporation allows profits to pass directly through the corporation to you, so that you only pay taxes once, but your coproration has to be entirely US owned for S incorporation. If sued, your corporation supposedly takes the brunt of the lawsuit rather than you personally. I believe in theory if you are not incorporated and lose a major lawsuit, your personal possessions could be at risk. And incorporation may not be an absolute guarantee that your personal assets are safe. Factors you have to weigh in making this decision. If all you do is wedding videos, you may feel that there is little risk of being sued. If you do major commercial film productions, with music rights, location releases, talent release forms, and a myriad of legal concerns, you may decide that you need added protection. Once you figure out your risk, you may conclude that simply opting for an insurance plan is sufficient to protect your assets. If your assets are significant enough to worry about, it's probably worth talking with an attorney, which is what I recommend.
Good luck, Carolyn!
Max.
|
