I want to get incorporated, is it a good idea???

**dmoneycorp** · 11-13-2009 11:59 AM

I have been running my own business for the last three years. But here in the near future, I will aquire multiple properties and other businesses as well. I would very much like to get a corporation started. But i am not too sure if that is a good idea. Also I wanted to it started before anyone takes my tradename. If I do start up a corp, will there be problems due to inactivity for the first year? I would also like to start up other businesses only if I can get it all under this corp.

Thank you

**killer2021** · 11-14-2009 03:30 AM

Hold off on it. Stick to LLC or LLP instead until the business gets really big. Corporation mainly for having investors. Corporate tax returns are expensive theres lots of other regulations you have to follow and among other things. There is also corporate tax if you are a C corp. The other entities are simply pass through.

**ndrom** · 11-15-2009 03:53 PM

Does your state have S-corps? They are a nice hybrid between LLC's and Corps (pass-through)

**GuyC** · 11-16-2009 04:26 AM

Originally Posted by dmoneycorp

I have been running my own business for the last three years. But here in the near future, I will aquire multiple properties and other businesses as well. I would very much like to get a corporation started. But i am not too sure if that is a good idea. Also I wanted to it started before anyone takes my tradename. If I do start up a corp, will there be problems due to inactivity for the first year? I would also like to start up other businesses only if I can get it all under this corp.

Thank you

Be careful with what you choose since you are going to be owning real estate. With any kind of real estate, a corporation is typically not the way to go for several reasons. One being the double taxation on dividends. You can get around for a normal business by paying yourself a salary, but say you sell a property for 250k and your normal salary is $50k, you cannot just pay yourself the extra $250k in salary. There are also other taxes such as the "personal holding company" tax you may be subject to as well.

In your case it may be better to form an LLC.

**Maxewhite** · 11-16-2009 06:08 AM

Having more resources, it is even more challenging for you to work that out. As my experience have taught me too, this can charge me a lot of time working on different aspects in different business that I handle and that I wanted to put up. The time that I learned to outsource my work, I felt better because not only that I spent less hiring staff, I had more time to spend personal life too. I had my business in automation while I manage the others and breakdown more projects to finish early. You can also see this website which made me the happiest person ever to learn from its free and interesting videos. How To Outsource Your Internet Business - Why You Should Outsource Your Work | Mass Outsource