| Author |
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Corporatemonkey
| | Posted on Monday, October 20, 2008 - 11:25 pm: | 
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What is your source for this stat?
I will be honest I do not have an independent source on it. Our legal team (mine, companies, partners) all said it. If you make $ you need a full corporation, a S-corp leaves you too exposed. |
Ft_bstrd
| | Posted on Monday, October 20, 2008 - 11:59 pm: |
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My experience is coming from a CPA standpoint. Most CPAs recommend pass through corporations for simplicity of tax filing.
I agree that there is less protection, but with most small businesses they don't make enough to allow the business to obtain credit independent of personal guarantee.
Even though you might have limited liability from a corporate standpoint, you don't from a creditor standpoint. |
Corporatemonkey
| | Posted on Tuesday, October 21, 2008 - 12:10 am: |
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Tax filing difference between a s-corp, and full corporation is not that much more complex.
For a lot of smaller businesses creditors are not your biggest concern (liability wise), it is lawsuits.
Example in my case I would need 10's of millions of dollars in error and omission insurance. If I produce a piece of software that brings down a company database, that company will want to regain its lost productivity.
It is quite common for business to calculate computer system losses at millions per hour.
I don't have million's per hour to give...
So in that case they can try to sue me, at worst take my company and its intellectual product, which is bad, but not as bad as personally cleaning me (or more importantly my partner) out. |
Miss_doc
| | Posted on Tuesday, October 21, 2008 - 03:49 am: |
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Kinda funny, I went to that Americans For Fair Taxation site and Guess what?!?!?!?! most of the people who are in support of fair taxation are REPUBLICAN, Only 2 Democrats are supporting it. Everyone else is Republican. I guess that I really can't be too suprised at this, Not by dems trying to keep what they get; paid by us for not really listening to us.
Mr. Grumpy, just to let you know I have been around for quite awhile, I have just had comp problems. Lost pw for old username, lost email accounts, so I did the only thing that I could think of to get back in here as a registered user. New account. |
Miss_doc
| | Posted on Tuesday, October 21, 2008 - 03:50 am: |
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Put the P.O.W. and the PIT BULL in the white house!!!! |
Spatten1
| | Posted on Tuesday, October 21, 2008 - 05:01 am: |
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S-corp leaves you too exposed
The attorneys that I work with all say that hasn't been true for years. I think you are getting bad advice.
C Corp will hammer you if you ever sell any of the assets in your business that have appreciated in value like real estate. You will pay double taxes.
Also, if you ever sell a C Corp you have to sell stock, not assets, to get only personal cap gains treatment rather than double tax. |
Corporatemonkey
| | Posted on Tuesday, October 21, 2008 - 06:06 am: |
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The attorneys that I work with all say that hasn't been true for years. I think you are getting bad advice.
The magic phase is "Piercing the Corporate Veil"
The way the multitude of attorneys explained it, with a C-Corp it added an extra layer for a lawyer to push through.
With an S-Corp the profit/loss flows through, making it easy to spot who has the most assets. Remember most "slip 'n fall" attorneys are looking for easy targets, not something they have to work at.
I admit I haven't studied it as well as I should, but when I we set up the corporation (late '90's) my partners trust lawyers would not sign off on this unless we went C-Corp.
As for the double taxation you are correct, but in a C-Corp there are some tax benefits if you do not need to take all the money. |
Court
| | Posted on Tuesday, October 21, 2008 - 07:34 am: |
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Anybody ever had someone try to "Pierce your Corporate Veil" over motorcycles?
I did.
I was in Court for two years.
I won. |
Corporatemonkey
| | Posted on Tuesday, October 21, 2008 - 07:45 am: |
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I was in Court for two years
So your really just a demon that lived inside of Court? 
What ever the case was I am glad you prevailed. }
(Message edited by corporatemonkey on October 21, 2008) |
Ft_bstrd
| | Posted on Tuesday, October 21, 2008 - 09:52 am: |
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I would agree that an S-Corp is easier to penetrate than a C-Corp. An LLC is much less easily penetrated than an S-Corp.
Ultimately, though, a C-Corp isn't impenetrable. |
Spatten1
| | Posted on Tuesday, October 21, 2008 - 11:04 am: |
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Can someone please log on the Harley board and get an opinion on this from a real attorney? |
Chellem
| | Posted on Tuesday, October 21, 2008 - 02:19 pm: |
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I just want to say, OT kinda, that this is the most polite, well-behaved and actually, most fact-laden political discussion I have witnessed on this board in a long time.
130+ posts and it's not on the backfire board, even with Obama in the thread title!
Woo.
->ChelleM |
Ft_bstrd
| | Posted on Tuesday, October 21, 2008 - 02:24 pm: |
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I usually only move it to Backfire when people begin making personal attacks on one another.
That has been pleasantly absent from this discussion.
It's been nice.
I love to debate substance like this. Thanks guys! |
Hootowl
| | Posted on Tuesday, October 21, 2008 - 04:01 pm: |
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No personal attacks? Court just said he penetrated himself for two years. That sounds personal to me. |
Ft_bstrd
| | Posted on Tuesday, October 21, 2008 - 04:05 pm: |
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Eww. Court has stinky fingers.  |
Court
| | Posted on Tuesday, October 21, 2008 - 05:46 pm: |
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I'll be back after I finish this cigarette. . . . . |
Glitch
| | Posted on Tuesday, October 21, 2008 - 06:04 pm: |
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That has been pleasantly absent from this discussion.
I think it's because we all hate taxes.
Too funny Court  |
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