Incorporating…

[EconProf]

BobS
Dump this “friend”.
Incorporating seldom makes legal or financial sense for 98% of the average population.
It costs $800 PER YEAR in California, plus significant first year start-up costs, probably with a lawyer.
Only really helps if you are suit-prone, have major assets to shield, doing something that could prompt others to sue, etc.

[kismetsdad]

Ditto on the $800. You also would have to file Corporate income taxes State and Local regardless of whether you owe anything. WE incorporated on a 4 person airplane ownership which did make sense. It protected me if one of my partners crashed and created liability. The paperwork and the $800 were a pain however.

[kismetsdad]

Ditto on the $800. You also would have to file Corporate income taxes State and Local regardless of whether you owe anything. WE incorporated on a 4 person airplane ownership which did make sense. It protected me if one of my partners crashed and created liability. The paperwork and the $800 were a pain however.

[kismetsdad]

Ditto on the $800. You also would have to file Corporate income taxes State and Local regardless of whether you owe anything. WE incorporated on a 4 person airplane ownership which did make sense. It protected me if one of my partners crashed and created liability. The paperwork and the $800 were a pain however.

[kismetsdad]

Ditto on the $800. You also would have to file Corporate income taxes State and Local regardless of whether you owe anything. WE incorporated on a 4 person airplane ownership which did make sense. It protected me if one of my partners crashed and created liability. The paperwork and the $800 were a pain however.

[kismetsdad]

Ditto on the $800. You also would have to file Corporate income taxes State and Local regardless of whether you owe anything. WE incorporated on a 4 person airplane ownership which did make sense. It protected me if one of my partners crashed and created liability. The paperwork and the $800 were a pain however.

[Coronita]

I wouldn't entirely count this out as a valid shelter. There are plenty of people (both crooks and non-crooks) that appeared to use corps as asset shelters. The question is, minus the trival costs of setting up a corp for this purpose, and managing the day to day operation, I'm actually curious to hear how someone would use this to protect assets. I'm sure it's can be done, just very few people know or are willing to talk about it.

I really wish we had an blogger here that's an estate lawyer that could talk about liability shelters. It's a valid concern, especially living in a sue happy state.

 

My perspective though.

 

In most cases, if you're only concern is about getting sued because you have assets (say if you get into an accident, or someone slips and falls on your porch), getting a nice liability insurance on both home and auto AND adding an umbrella coverage would be a good start. Total coverage of $1million of liability would be a start.As insurance companies are cheap and will resist payouts, they will fight to defend against frivolous lawsuits. Particularly in a sue happy state CA, this is useful if you get into a fenderbender, even if it wasn't your fault..some idiot will always try to make money off of it. Second rule is to keep a nice camera in the car so when the accident happens, snap a nice picture before moving any vehicles (I have a nice webcam that also films when, just in case those nice people who drive big SUVs should happen to leave me nice door dings in the shopping malls and accidentally forget to leave a note)

 

It also helps to put things in other people's names and the account types matter. In some states, retirement accounts aren't subject to creditors. In CA, i'm not so sure (But I'm not a lawyer, and can't speak with certainty).

 

There's also things with irrevocable trust accounts and foundations which I haven't investiagated. I wish someone here could speak to that. NOTE: Living Trusts don't necessarily add any asset protection according to lawyers that I spoke with. They only facilitate distribution of wealth at death by avoiding to go to probate and offer some increased exemptions from estate taxes for married couples.

 

One thing about 529 education savings account. I did read that the 529K education plan accounts weren't considered a protected account in CA. Other states treat this similar to a retirement account and creditors can't go after it.

[Coronita]

I wouldn't entirely count this out as a valid shelter. There are plenty of people (both crooks and non-crooks) that appeared to use corps as asset shelters. The question is, minus the trival costs of setting up a corp for this purpose, and managing the day to day operation, I'm actually curious to hear how someone would use this to protect assets. I'm sure it's can be done, just very few people know or are willing to talk about it.

I really wish we had an blogger here that's an estate lawyer that could talk about liability shelters. It's a valid concern, especially living in a sue happy state.

 

My perspective though.

 

In most cases, if you're only concern is about getting sued because you have assets (say if you get into an accident, or someone slips and falls on your porch), getting a nice liability insurance on both home and auto AND adding an umbrella coverage would be a good start. Total coverage of $1million of liability would be a start.As insurance companies are cheap and will resist payouts, they will fight to defend against frivolous lawsuits. Particularly in a sue happy state CA, this is useful if you get into a fenderbender, even if it wasn't your fault..some idiot will always try to make money off of it. Second rule is to keep a nice camera in the car so when the accident happens, snap a nice picture before moving any vehicles (I have a nice webcam that also films when, just in case those nice people who drive big SUVs should happen to leave me nice door dings in the shopping malls and accidentally forget to leave a note)

 

It also helps to put things in other people's names and the account types matter. In some states, retirement accounts aren't subject to creditors. In CA, i'm not so sure (But I'm not a lawyer, and can't speak with certainty).

 

There's also things with irrevocable trust accounts and foundations which I haven't investiagated. I wish someone here could speak to that. NOTE: Living Trusts don't necessarily add any asset protection according to lawyers that I spoke with. They only facilitate distribution of wealth at death by avoiding to go to probate and offer some increased exemptions from estate taxes for married couples.

 

One thing about 529 education savings account. I did read that the 529K education plan accounts weren't considered a protected account in CA. Other states treat this similar to a retirement account and creditors can't go after it.

[Coronita]

I wouldn't entirely count this out as a valid shelter. There are plenty of people (both crooks and non-crooks) that appeared to use corps as asset shelters. The question is, minus the trival costs of setting up a corp for this purpose, and managing the day to day operation, I'm actually curious to hear how someone would use this to protect assets. I'm sure it's can be done, just very few people know or are willing to talk about it.

I really wish we had an blogger here that's an estate lawyer that could talk about liability shelters. It's a valid concern, especially living in a sue happy state.

 

My perspective though.

 

In most cases, if you're only concern is about getting sued because you have assets (say if you get into an accident, or someone slips and falls on your porch), getting a nice liability insurance on both home and auto AND adding an umbrella coverage would be a good start. Total coverage of $1million of liability would be a start.As insurance companies are cheap and will resist payouts, they will fight to defend against frivolous lawsuits. Particularly in a sue happy state CA, this is useful if you get into a fenderbender, even if it wasn't your fault..some idiot will always try to make money off of it. Second rule is to keep a nice camera in the car so when the accident happens, snap a nice picture before moving any vehicles (I have a nice webcam that also films when, just in case those nice people who drive big SUVs should happen to leave me nice door dings in the shopping malls and accidentally forget to leave a note)

 

It also helps to put things in other people's names and the account types matter. In some states, retirement accounts aren't subject to creditors. In CA, i'm not so sure (But I'm not a lawyer, and can't speak with certainty).

 

There's also things with irrevocable trust accounts and foundations which I haven't investiagated. I wish someone here could speak to that. NOTE: Living Trusts don't necessarily add any asset protection according to lawyers that I spoke with. They only facilitate distribution of wealth at death by avoiding to go to probate and offer some increased exemptions from estate taxes for married couples.

 

One thing about 529 education savings account. I did read that the 529K education plan accounts weren't considered a protected account in CA. Other states treat this similar to a retirement account and creditors can't go after it.

[Coronita]

I wouldn't entirely count this out as a valid shelter. There are plenty of people (both crooks and non-crooks) that appeared to use corps as asset shelters. The question is, minus the trival costs of setting up a corp for this purpose, and managing the day to day operation, I'm actually curious to hear how someone would use this to protect assets. I'm sure it's can be done, just very few people know or are willing to talk about it.

I really wish we had an blogger here that's an estate lawyer that could talk about liability shelters. It's a valid concern, especially living in a sue happy state.

 

My perspective though.

 

In most cases, if you're only concern is about getting sued because you have assets (say if you get into an accident, or someone slips and falls on your porch), getting a nice liability insurance on both home and auto AND adding an umbrella coverage would be a good start. Total coverage of $1million of liability would be a start.As insurance companies are cheap and will resist payouts, they will fight to defend against frivolous lawsuits. Particularly in a sue happy state CA, this is useful if you get into a fenderbender, even if it wasn't your fault..some idiot will always try to make money off of it. Second rule is to keep a nice camera in the car so when the accident happens, snap a nice picture before moving any vehicles (I have a nice webcam that also films when, just in case those nice people who drive big SUVs should happen to leave me nice door dings in the shopping malls and accidentally forget to leave a note)

 

It also helps to put things in other people's names and the account types matter. In some states, retirement accounts aren't subject to creditors. In CA, i'm not so sure (But I'm not a lawyer, and can't speak with certainty).

 

There's also things with irrevocable trust accounts and foundations which I haven't investiagated. I wish someone here could speak to that. NOTE: Living Trusts don't necessarily add any asset protection according to lawyers that I spoke with. They only facilitate distribution of wealth at death by avoiding to go to probate and offer some increased exemptions from estate taxes for married couples.

 

One thing about 529 education savings account. I did read that the 529K education plan accounts weren't considered a protected account in CA. Other states treat this similar to a retirement account and creditors can't go after it.

[Coronita]

I wouldn't entirely count this out as a valid shelter. There are plenty of people (both crooks and non-crooks) that appeared to use corps as asset shelters. The question is, minus the trival costs of setting up a corp for this purpose, and managing the day to day operation, I'm actually curious to hear how someone would use this to protect assets. I'm sure it's can be done, just very few people know or are willing to talk about it.

I really wish we had an blogger here that's an estate lawyer that could talk about liability shelters. It's a valid concern, especially living in a sue happy state.

 

My perspective though.

 

In most cases, if you're only concern is about getting sued because you have assets (say if you get into an accident, or someone slips and falls on your porch), getting a nice liability insurance on both home and auto AND adding an umbrella coverage would be a good start. Total coverage of $1million of liability would be a start.As insurance companies are cheap and will resist payouts, they will fight to defend against frivolous lawsuits. Particularly in a sue happy state CA, this is useful if you get into a fenderbender, even if it wasn't your fault..some idiot will always try to make money off of it. Second rule is to keep a nice camera in the car so when the accident happens, snap a nice picture before moving any vehicles (I have a nice webcam that also films when, just in case those nice people who drive big SUVs should happen to leave me nice door dings in the shopping malls and accidentally forget to leave a note)

 

It also helps to put things in other people's names and the account types matter. In some states, retirement accounts aren't subject to creditors. In CA, i'm not so sure (But I'm not a lawyer, and can't speak with certainty).

 

There's also things with irrevocable trust accounts and foundations which I haven't investiagated. I wish someone here could speak to that. NOTE: Living Trusts don't necessarily add any asset protection according to lawyers that I spoke with. They only facilitate distribution of wealth at death by avoiding to go to probate and offer some increased exemptions from estate taxes for married couples.

 

One thing about 529 education savings account. I did read that the 529K education plan accounts weren't considered a protected account in CA. Other states treat this similar to a retirement account and creditors can't go after it.

[Anonymous]

“From the side of the corporation:
If you are doing business under a corporation and someone sues the corporation.. they can go after the corporation’s assets, but not yours.

uc, this is the scenario my friend was recommending. I form the corporation and put the assets in the corps name or have the corp buy the assets.

it may not be illegal but it is retarded. a corporation ostensibly needs to be a going concern, not just a way to shield assets from creditors.
besides, you don’t own a business or home anyway so what is the point, are you a deadbeat trying to hide your assets from creditors? If so, in a lawsuit a plaintiff against you could simply pierce the corporate shield anyway so you will derive no benefit.

larrylujack, in my profession, I am able to contract my services out with or without working for another entity. According to the person who voluntared this info to me, since I will be writing reports, I can write off the office I work in, my fax/copier/scanner, personal computer, and any other office equipment.

So, I was wondering if incorporating was worth it. My friend says it is worth it just for the asset protection alone. He says they can’t touch the corporation if the were to sue me because I am not the corporation. Also, they couldn’t touch my assets because my assets would be owned by the corp. even though I own the corp.

Also, I heard about “double taxation” anyone know about this? I was told if you form a certain type of corp. there is a way around that.

I’m just considering what my friend said at this point and asking questions.

P.S. And he said incorp. in Nevada.

[Anonymous]

“From the side of the corporation:
If you are doing business under a corporation and someone sues the corporation.. they can go after the corporation’s assets, but not yours.

uc, this is the scenario my friend was recommending. I form the corporation and put the assets in the corps name or have the corp buy the assets.

it may not be illegal but it is retarded. a corporation ostensibly needs to be a going concern, not just a way to shield assets from creditors.
besides, you don’t own a business or home anyway so what is the point, are you a deadbeat trying to hide your assets from creditors? If so, in a lawsuit a plaintiff against you could simply pierce the corporate shield anyway so you will derive no benefit.

larrylujack, in my profession, I am able to contract my services out with or without working for another entity. According to the person who voluntared this info to me, since I will be writing reports, I can write off the office I work in, my fax/copier/scanner, personal computer, and any other office equipment.

So, I was wondering if incorporating was worth it. My friend says it is worth it just for the asset protection alone. He says they can’t touch the corporation if the were to sue me because I am not the corporation. Also, they couldn’t touch my assets because my assets would be owned by the corp. even though I own the corp.

Also, I heard about “double taxation” anyone know about this? I was told if you form a certain type of corp. there is a way around that.

I’m just considering what my friend said at this point and asking questions.

P.S. And he said incorp. in Nevada.

[Anonymous]

“From the side of the corporation:
If you are doing business under a corporation and someone sues the corporation.. they can go after the corporation’s assets, but not yours.

uc, this is the scenario my friend was recommending. I form the corporation and put the assets in the corps name or have the corp buy the assets.

it may not be illegal but it is retarded. a corporation ostensibly needs to be a going concern, not just a way to shield assets from creditors.
besides, you don’t own a business or home anyway so what is the point, are you a deadbeat trying to hide your assets from creditors? If so, in a lawsuit a plaintiff against you could simply pierce the corporate shield anyway so you will derive no benefit.

larrylujack, in my profession, I am able to contract my services out with or without working for another entity. According to the person who voluntared this info to me, since I will be writing reports, I can write off the office I work in, my fax/copier/scanner, personal computer, and any other office equipment.

So, I was wondering if incorporating was worth it. My friend says it is worth it just for the asset protection alone. He says they can’t touch the corporation if the were to sue me because I am not the corporation. Also, they couldn’t touch my assets because my assets would be owned by the corp. even though I own the corp.

Also, I heard about “double taxation” anyone know about this? I was told if you form a certain type of corp. there is a way around that.

I’m just considering what my friend said at this point and asking questions.

P.S. And he said incorp. in Nevada.

[Anonymous]

“From the side of the corporation:
If you are doing business under a corporation and someone sues the corporation.. they can go after the corporation’s assets, but not yours.

uc, this is the scenario my friend was recommending. I form the corporation and put the assets in the corps name or have the corp buy the assets.

it may not be illegal but it is retarded. a corporation ostensibly needs to be a going concern, not just a way to shield assets from creditors.
besides, you don’t own a business or home anyway so what is the point, are you a deadbeat trying to hide your assets from creditors? If so, in a lawsuit a plaintiff against you could simply pierce the corporate shield anyway so you will derive no benefit.

larrylujack, in my profession, I am able to contract my services out with or without working for another entity. According to the person who voluntared this info to me, since I will be writing reports, I can write off the office I work in, my fax/copier/scanner, personal computer, and any other office equipment.

So, I was wondering if incorporating was worth it. My friend says it is worth it just for the asset protection alone. He says they can’t touch the corporation if the were to sue me because I am not the corporation. Also, they couldn’t touch my assets because my assets would be owned by the corp. even though I own the corp.

Also, I heard about “double taxation” anyone know about this? I was told if you form a certain type of corp. there is a way around that.

I’m just considering what my friend said at this point and asking questions.

P.S. And he said incorp. in Nevada.

[Author]

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