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core attitude
11-07-2005, 12:37 PM
I'm looking for some advise on the best way to incorporate. Due to the nature of the business, I will need a corporation, not a LLC, or any of the other derivatives available. I am looking for any advise on the pros / cons of incorporating on line vs. in person, attorney vs. incorporation service, etc. and would appreciate any real world advise anyone may have.
Thus far, most of my research has been the investigation of several on line incorporation services. Part of the problem that I have found is that while these services offer a “menu” type selection for incorporating, they all seen to offer slightly different offerings. I would really like to handle this myself, but have become somewhat unclear due the different offerings as to what is actually needed.
The business will be in Riverside County and I am only interested in a California corporation. While I would like to get this taken care of soon, the business will not actually be up and running until next year.
Thanks in advance,
Pete

BiggusJimbus
11-07-2005, 12:45 PM
Nolo.com
Cheap and proper advice.
Get a good tax advisor before you decide how you want to incorporate.
Lots of subtle and not so subtle differences.
Good Luck,
JIm.

core attitude
11-07-2005, 12:50 PM
Get a good tax advisor before you decide how you want to incorporate.
Good Luck,
JIm.
Due to the nature of the business, (real estate) I was told by several sources I can only register as a corporation. I will check out Nolo.
Thanks, Pete

HM
11-07-2005, 12:55 PM
Check out www.legalzoom.com this place has a great reputation and is relatively cheap.
I used a lawyer on my two current corporations. One is a C-Corp, the other is an S-Corp. I spent $1,500 on each one using a lawyer to set them up.
The big thing is whether you want to go C-Corp or S-Corp. Don't let someone just reccomend going S-Corp(or C-corp), just because that is what most people do. Pick up a book "Own your own corporation" by Robert Kiyosaki & Sutton, or "Inc. and Grow Rich" (basically the same book). These books go through the different sub chapters (C or S) and the pro's and con's of both. My lawyer wanted me to go S-Corp on both, and I am now converting the S-Corp to C-Corp. They(most lawyers and CPAs) talk about the double taxes of a C-Corp as the biggest reason to go S-Corp...but when you understand them, that really was not an issue. There is a lot of limitations on write-offs on S-corps, and you could be subject to phantom tax, where you corporation looks like it made money, when in fact, it did not. S-Corp still has some major advantages, but you need to decide what fits with you.

core attitude
11-07-2005, 01:05 PM
I used a lawyer on my two current corporations. One is a C-Corp, the other is an S-Corp. I spent $1,500 on each one using a lawyer to set them up.
Thanks for the advise, did you by chance use someone in the area that you would recommend?
Pete

HM
11-07-2005, 01:13 PM
Thanks for the advise, did you by chance use someone in the area that you would recommend?
Pete
Yah, Brad Landon - he is in Temecula off of Rancho California. He does a good job and is more of his specialty. His number is 951-676-7886. He is a cool guy as well. Late 30's and still rides his skate board at skate parks.
I still reccomend the books first. For one, when the lawyer explains the difference, he charges you an hourly rate. And, the lawyer actually can't make full out reccomendations, they will always cover their butts by saying "Check with your CPA", by the way, I have a good CPA in Temecula as well, but she doesn't skate. :D

core attitude
11-07-2005, 01:30 PM
Yah, Brad Landon - he is in Temecula off of Rancho California. He does a good job and is more of his specialty. His number is 951-676-7886. He is a cool guy as well. Late 30's and still rides his skate board at skate parks.
I still reccomend the books first. For one, when the lawyer explains the difference, he charges you an hourly rate. And, the lawyer actually can't make full out reccomendations, they will always cover their butts by saying "Check with your CPA", by the way, I have a good CPA in Temecula as well, but she doesn't skate. :D
Thanks, I'll pick up the books ASAP and give them a read. I very well might hit you up for the CPA's number as well, skater or not...... :smile:
Pete

Totally IncapASSitated
11-07-2005, 02:53 PM
I am in a similar situation...but with forming a LLC.
Anybody have any experience along these lines?
I have picked up a couple of books (Entrepeneur Magazine's Ultimate Guide to Forming an LLC and How to Profit by Forming Your Own LLC by Friedman).
So far it seems relatively simple...any suggestions? watch-outs?

Totally IncapASSitated
11-07-2005, 02:54 PM
Oh yeah...sorry didn't mean to jack your thead...just thought it was similar enough ;)

core attitude
11-07-2005, 03:42 PM
Oh yeah...sorry didn't mean to jack your thead...just thought it was similar enough ;)
No sweat, maybe this will help keep it at the top for a few days so we can gather some good info.
Pete

Ion
11-07-2005, 03:55 PM
I filled out my s-corps' articles of incorporation application and sent them to the az corp. commission. I asked them what was required of me as someone who was applying for an s-corp and they told me exactly what I needed to do. Essentially, after all the forms were filled out, all I had to do was pay the local newspaper to announce the new corp. for 3 successive days, then send a copy of the receipt to the az corp commission as proof that I completed this requirement. The only cost was for the ad in the paper. I also fill out and send in all state and fed payroll / unemployment forms when they are required. I used to pay an aco****ant to do this for me, but they never did this on time and sometimes forgot completely! Lousy FLAKES! I now only use an accountant once a year for my k-1 and 1120s. It took some research, but in the end, it was nice to save the $ by doing it myself.

HM
11-07-2005, 04:06 PM
I am in a similar situation...but with forming a LLC.
Anybody have any experience along these lines?
I have picked up a couple of books (Entrepeneur Magazine's Ultimate Guide to Forming an LLC and How to Profit by Forming Your Own LLC by Friedman).
So far it seems relatively simple...any suggestions? watch-outs?
LLC's are covered in the same books, infact, they go over all the different ways to own a company from sole proprietor to C-Corp. While there are definitely ways you can save money on setting up a corporation, if you are doing a CA corporation, you will want to spend the money. If he is doing anything that requires a CA license of some type, he will need a CA based corporation. Now, the corporation can be owned by another corporation that is not based in CA, but that is a step a little down the road - and there are still limitations.
Nevada, AZ, and Wyoming corporations are easier to set up on your own as they have not had the level of litigation that CA has and there are other state specific protections. CA has so much precedent on how officers and shareholders of corporations can be sued that you almost wonder why you would incorporate. That is where a competent lawyer will make or break your corporation. And if you are involved in Real Estate, you will be sued.