Re: Re: Business Credit, The Backdo How much did it cost to Incorporate, don't you also have to pay a yearly tax or fee.
Re: Re: Business Credit, The Backdo It cost less than 200 to incorporate. Taxes are based on profit. We pay 19.47% APR on loans and other expenses have continued to eat away at profits, so the company has still not paid any significant taxes. www.creditsense.com
Re: Re: Business Credit, The Backdo I'm in CA and it cost me $149 to incorporate, but there is a minimum annual tax of $800 whether you make any money or not. Each state is different.
Re: Re: Business Credit, The Backdo Did you try incorporating in Nevada or Delaware? I believe they offer some good tax advantages for small businesses. www.creditsense.com
Re: Re: Business Credit, The Backdo I have to be Inc. in CA. You don't need a lawyer. For me it was $149 for a lawyer to do it. I could have saved about $100 doing it myself, but I was too busy. Plus, there was also 1 month of unlimited legal advise that came with the fee.
Re: Re: Business Credit, The Backdo If you have a Sole Propriotorship and Incorporate it will creditor still judge you business by the life of the propriortorship or will you be considered a new business??
Re: Re: Business Credit, The Backdo It depends on the creditor. On most of the application I've seen it ask how long the business has been around and how long it's been incorporated. Lenders know that a lot of businesses start of as a sole prop. and then INC. later as they grow. Incorporating doesn't change the business it just changes the structure for taxes and liability.
Re: Re: Re: Business Credit, The Backdo We did exactly this. Hubby's biz had been operating since 1986. Last year he incorporated. His creditors (and his customers) see him as the same biz with the same history, only now having taken a dramatic step in maturity and is even less of a risk. BTW, DnB sees things the same way and updated his account to show the incorporation and the slightly different name, but with the same credit history. Think of it this way. If you get married and change your name, you're the same person and your credit file will only change to reflect your name change and possibly add that of your new spouses (as it did with hubby), but your history, scores, etc. remain the same.
Re: Re: Re: Business Credit, The Backdo Well that's good to hear, I'm try to quailify for a refi at the moment, but the INCORPORATING sounds good, the tax write-offs are great too! I'm in california but I keep hearing NEVADA CORP is the way to go. What state are you in and do you or anybody know about NEVADA corps as opposed to other states???
Re: Re: Re: Re: Business Credit, The Backdo CAUTION!!!! I just 2 days ago received a general alert from our financial advisors that the big benefits in incorporating in Nevada have been laid waste by the recent tax code changes! And that if you're a Nevada Corp you'll want to rethink that by 2005 when things kick in. And if you haven't incorporated your, "don't do it in Nevada". "...THE RULES HAVE CHANGED and what you don't know will hurt you! Nevada Corporations are OUT!..." Please talk to someone "in the know" before you dive into incorporating as a Nevada Corp. P.S. We're a Texas Corp.
Re: Re: Re: Re: Business Credit, Th How about Delaware? If you notice a lot of credit card companies are based there. www.creditsense.com
Re: Re: Re: Re: Business Credit, Th It didn't say anything about Delware. I know that Delaware corps were all the rage; the Nevada corps were. The alert said something about Wyoming possibly being the new "safe haven", but I don't know specifics because -- since we're a Texas corp (and very comfortable being so, since our business is also based here -- I didn't ask.
Re: Re: Re: Re: Business Credit, Th Movingonup, If you're in CA like I am you will need a CA corp. for many reasons. 1. I haven't found a bank in CA that will open an account for you with a Nevada corp. 2. If you have a Nevada corp. you have tp pay the state of CA additional fees to do business here. In the long run it's more expensive. 3. Nevada corps. throw a red flag to the feds. I have heard many good things about Deleware corps. Look at all the banks for example. You still run the extra cost for the state of CA if you do business here. With a CA corp you don't have to pay the $800 minimum tax until the 2nd year. The first year is free.
Re: Re: Re: Re: Re: Business Credit, Th I was just mentioning those other states, we are New Jersey based and like it very much. We did not use a lawyer, we used a CPA for the first years return and as an advisor in the way to setup the company (LLC). It has been great. www.creditsense.com
Re: Re: Re: Re: Re: Business Credit, Th Movingonup, The remainder of the year you incorporate is free of the $800 tax. Let's say you start in June 03...you pay the tax in April 04 for the year 2004. If you start in Nov 03 you still pay the tax for 04 in April 2004. This info is on the Franchise Tax Board website. I suggest double checking before you do anything. You don't get a whole year free...just the remainder. Here is the website of the firm I used. I've been pleased with them and haven't found anyone cheaper. You can call them toll free to ask questions before you apply. They also have an annual retainer for $139 if you want ongoing legal advice. With me they offered it for $89 if you sign up when you do your corp. .When I got my corp. they gave 30 days for free to try it. Not sure if they still do. Amerilawyer.com
Re: Re: Re: Re: Re: Re: Business Credit, Th Those that got bus. credit with Staples, Home Depot, etc. I just got my DNB number and was noticing the applications on Staples, etc. seem to recommend if the bus. is less than 2 years or doesn't have a lot of sales they want a PG. I know several of you said you did it without a PG. Just wondering what you put on the applications.
