Corportions C or S election if I have a JOB - Posted by Brian (IN)

Posted by leapfrog on May 17, 1999 at 10:26:28:

The actual dollar figure for incorporating may vary from place to place but my look on it is as I mentioned previously — as deductions against income. You are perfectly correct in saying that if you’d like to limit your liability----incorporating would be the way to go. But with new ruels in place — at least where I live----in regards to corporate directors and their liabilty----I relly don’t know how covered you are (unless of course you’re a huge corporation-- & can afford a shark of a lawyer etc.). Where I live, the banks are becoming evil and asking for personal guarantees even when you’ve incorporated!! Go figure–why do they think you went through the hassle and expense of incoporating? But again, incorporating does protect your personal assets against liability. If you are investing and putting the assets under the corporation, though, I don’t see how they’ll be protected unless you transfer title. But the tax issues are definately a bonus.

Corportions C or S election if I have a JOB - Posted by Brian (IN)

Posted by Brian (IN) on May 14, 1999 at 22:11:06:

I have a JOB and am married my wife does not work. My income from my JOB puts me in the 28% tax bracket. I plan on keeping this JOB (it is very flexible and gives me time to invest in R.E.). My real estate investing (mostly flipping via retailing) could push me into the next tax bracket this year. I am researching the tax advantages of the different types of corporations, LLC’s, Limited partnerships, etc.

Does anyone have experience, advise, etc. on costs, savings, techniques, eductional material, etc.



Re: Corportions C or S election if I have a JOB - Posted by JPiper

Posted by JPiper on May 15, 1999 at 11:34:56:

A C-Corporation is probably the preferred vehicle for flipping. There are numerous articles written on this site regarding this subject, located in the How To Articles, by Bill Bronchick. I would suggest you start there. If you want to form a corporation or LLC, Bronchick sells courses which will instruct you on that, and other information regarding the entity. The cost is quite reasonable. They are available here as well.

A C-Corp carries a tax rate of 15% for the first $50K income.


Re: Corportions C or S election if I have a JOB - Posted by leapfrog

Posted by leapfrog on May 15, 1999 at 09:14:24:

Corporations, as you probably know, are their own entity. As such they are the ones taking the tax deductions etc. You would no longer have any deductions you could take from your employed work. Normally it is a good idea to incorporate once you make about $60K —again the year would be determined by what deductions you as an individual could take versus the company. If you don’t have a tax accountant, you might want to go check with them----the tax laws are so different from place to place.

Re: Corportions C or S election if I have a JOB - Posted by Leon

Posted by Leon on May 16, 1999 at 17:35:19:

What about incorporating before you make 60k for the sole purpose of limiting liability? Would appreciate your input. Thanks