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  1. #1
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    at what point do you think?

  2. #2
    Affiliate Miester my2cents's Avatar
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    when ever you are making $$$

    contact an accountant or legal beagle...

    another choice is to get a good book on the subject... try nolo press they specialize in legal do it yourself books...

    Joe
    ++++++++++++++++++++++++++++++++++++++++++
    that's my2cents, 'cuz I'm a legend in my own mind....

  3. #3
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    I heard that unless your earning over 30,000 a month its not worth it as you may end up paying more taxes

  4. #4
    The affiliate formerly known as ojmoo
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    What are the advantages of ever incorparating an affiliate business?

  5. #5
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    I like the tax free benefit of having my company pay all medical expenses not covered by insurance, which includes glasses and dental.

    I recommend the book, "Own Your Own Corporation" by Garrett Sutton, Esq. It will give you all kinds of advantages.

    Ray

  6. #6
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    Yesterday

  7. #7
    ABW Ambassador darkstar7's Avatar
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    If you incorporate, I recommend that you become a sub-chapter S corporation. It is the closest to being a sole proprietor.

    It is the best of both worlds. You get to write off lots of expenses and protect yourself from liability too.
    Luke
    Have you promoted your brand name today?

  8. #8
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    im going to buy that book now on amazon about corporation... thanks i gather its a good read right, not too outdated right...

    dark you said gowith sub chapter 5 corp as its close to sole propertier whats the difference.. i thought there is only one way to incoporate

  9. #9
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    LastHope, That book will tell you the advantages and disadvantages of the different types. I went with the S corp.

    Ray

  10. #10
    Defender of Truth, Justice and the Affiliate Way
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    LastHope,

    There are several ways to incorporate: S, LLC, and Corporation. Which one is best for you depends on numerous things about your business and why you are wanting to incorporate. It is best to get advice from an accountant and/or lawyer depending on your reasons for wanting to incorporate (legal vs tax or combination of both). I talked with 2 accountants a bit back about which type of corporation I should do and got 2 different answers.

    There's also a lot of good free information about incorporating and just all kinds of business stuff on the SBA web site. If you have an SBA Center close to you (I have 2 not far) it can worth the trip to visit them. They'll do one on one counseling with you answering questions and have a program where you can meet with retired business execs and ask any and all questions. The SBA is an excellent resource to tap into.

  11. #11
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    LastHope,

    The best time to incorporate is before you start your business. The purpose of incorporation is to protect yourself personally from any liability. If you're not incorporated and someone sues your business, they can come after your personal assets also. If you're incorporated, they can't touch your personal assets.

    I see you're in Canada, so the laws are probably a little bit different up there than down here in the States.

    First thing you should do is what BLFH (Ms. B) said, but it's probably not going to be called the SBA (Small Business Administration) up there. You probably have something similar to it though. They can give you all the information you need as well as reading material. I wouldn't buy the book on Amazon as your SBA can give you stuff targeted to what you want. They'll also be able to tell you the exact costs (which are minimal) and tell you what you will have to do yearly to remain incorporated.

    Under a C Corporation, the company is taxed directly. Under an S Corporation, the company is not taxed, but the profits go to company owners and they pay income tax on their share of the profits.

    There are pros and cons to each. Find the SBA type people who can help you locally.

    Bob

  12. #12
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    bob9503 said, <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> If you're incorporated, they can't touch your personal assets.
    <HR></BLOCKQUOTE>

    If you believe that then you need to read the book I recommended. One of the reasons to incorporate is to protect your assets but, if you do things wrong, you can lose that protection. Here are some examples of doing things wrong that can void your asset protection:
    Signing your name to a contract without your corporate officer designation.
    Not opening a corporate bank account.
    Using corporate funds to pay personal obligations and then later paying the company back.
    Depositing corporate income (checks made out to the corporation) into your personal checking account.

    If you are incorporating for asset protection then I think you should learn what it means to pierce the corporate vail and how that is done by those after your assets.

    Ray

  13. #13
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    Very good thanks for the information, it can be quite confusing..


    question is what affiliates getting sued? really?

    Ill have to search for a SBA up here in Canada...

    does it cost around $1000 to get incorporated? and a lawyer does it?

    I thought you had to be earning over a certain amount XXXXX to warrant getting incorporated?

    thanks anyway for advise.. its veryuseful... anyone here incorporated?


    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by bob95603:
    LastHope,

    The best time to incorporate is before you start your business. The purpose of incorporation is to protect yourself personally from any liability. If you're not incorporated and someone sues your business, they can come after your personal assets also. If you're incorporated, they can't touch your personal assets.

    I see you're in Canada, so the laws are probably a little bit different up there than down here in the States.

    First thing you should do is what BLFH (Ms. B) said, but it's probably not going to be called the SBA (Small Business Administration) up there. You probably have something similar to it though. They can give you all the information you need as well as reading material. I wouldn't buy the book on Amazon as your SBA can give you stuff targeted to what you want. They'll also be able to tell you the exact costs (which are minimal) and tell you what you will have to do yearly to remain incorporated.

    Under a C Corporation, the company is taxed directly. Under an S Corporation, the company is not taxed, but the profits go to company owners and they pay income tax on their share of the profits.

    There are pros and cons to each. Find the SBA type people who can help you locally.

    Bob <HR></BLOCKQUOTE>

  14. #14
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    Ray,

    Like anything else in life, it's based on the assumption that you do things right. Do things right and you protect your personal assets. Do things wrong (like Enron, etc) and you can go to jail.

    LastHope,

    Chances are an affiliate wouldn't be sued for something they do, other than copyright violations, etc. However, if you're doing anything that has to do with your company and something happens that causes you to be liable for something, you're at risk. As an example, you're going to Office Depot to buy ink for your printer and get into an accident. A slick lawyer could argue you were performing company duties and therefore the company is liable. Of course they would have to know that you owned a company, but worse has happened. Protect yourself and get incoporated.

    Getting incorporated is relatively inexpensive. Here in California there's an initial $25 fee and then $150 each year after that. Go to a lawyer and it will cost you $1000 easily to have him/her do the paperwork which is pretty simple. Your local "SBA" should have a booklet explaining the process with all the forms. If you have a Chamber of Commerce up there, they will probably have it also.

    You don't have to be making over a certain amount of money before incorporating. The big decision you have to make is whether to be a C or S corporation. The SBA can explain all that to you also. Get the info from the SBA and Chamber of Commerce, read it and then decide what you want to do.

    As Ray pointed out, when you incorporate, you have to do things to the letter of the law. To not do so will risk your corporate status.

    Bob

  15. #15
    Devil's Reject Electropulse's Avatar
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    also, the benefits of Incorporating are:

    you can open credit lines with Office Depot, Staples, etc without personal guarantees.

    when you apply for business credit, your personal credit will not be taken into account, unless you give out your SS#.

    and it helps if you have a duns# from Dun & Bradstreet.

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