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I have one corporate entity that I use for both my "side projects" and for consulting work. Mostly did it to ensure limited liability. Also, if one of the proje

by wdrw 9y ago

I have one corporate entity that I use for both my "side projects" and for consulting work. Mostly did it to ensure limited liability. Also, if one of the projects goes big, it will make things easier later on. Also, if we're talking about iPhone apps and such, a corporate name looks more professional in the app store.

shinamee 9y ago
Exactly, doing the same as well. Easier to keep your options open.
blparker 9y ago
I realize it’s state specific, but what were your approximate total charges for incorporating?
- wdrw 9y ago
  In my jurisdiction the actual incorporation is actually quite cheap (don't remember exact numbers unfortunately, but cost wasn't an issue at all). What's expensive is the services of a lawyer, but you really don't need it for a basic incorporation, the process is pretty self-explanatory. (Of course, if it's a startup with multiple co-founders, outside investment, etc, then a lawyer is definitely a must-have). The major cost, for me, is all of the ongoing tax accounting - you either need to pay for expensive bookkeping+accounting, or spend a lot of your time learning to do it yourself.
- macp 9y ago
  For the State of Hawaii, incorporation fee is $50 for for-profits, with a $15 annual business report fee thereafter. The annual report is a 1-page form stating total shares issues, officers, type of business, and addresses.
losteric 9y ago
> Mostly did it to ensure limited liability Did you consult with a lawyer? I've heard that "limited liability" doesn't really apply to one-person operations, it's intended to protect liability between multiple participants - though that may depend on the state.
- wdrw 9y ago
  From the research I did, limited liability is not at all to "protect liability between multiple participants", but indeed protects you from outside claims. It is indeed not bullet-proof (for example, if a one-person corporation owes taxes they can still go after your assets), but it is much better than nothing.
  - losteric 9y ago
    My lawyer said that's not the case, at least in my state. LLCs protect against criminal and contractual liabilities, but not tort liabilities. I google'd it since I couldn't remember his exact legal reasoning, this blog post just about sums it up: https://www.litigationandtrial.com/2009/05/articles/attorney/automobile-accidents/can-i-set-up-an-llc-to-avoid-personal-liability-in-a-lawsuit/ https://www.litigationandtrial.com/2009/05/articles/attorney... Certainly better than nothing, but I was personally not concerned with criminal/contractual liabilities

by wdrw 9y ago

shinamee 9y ago

Exactly, doing the same as well. Easier to keep your options open.

blparker 9y ago

I realize it’s state specific, but what were your approximate total charges for incorporating?

wdrw 9y ago
In my jurisdiction the actual incorporation is actually quite cheap (don't remember exact numbers unfortunately, but cost wasn't an issue at all). What's expensive is the services of a lawyer, but you really don't need it for a basic incorporation, the process is pretty self-explanatory. (Of course, if it's a startup with multiple co-founders, outside investment, etc, then a lawyer is definitely a must-have). The major cost, for me, is all of the ongoing tax accounting - you either need to pay for expensive bookkeping+accounting, or spend a lot of your time learning to do it yourself.
macp 9y ago
For the State of Hawaii, incorporation fee is $50 for for-profits, with a $15 annual business report fee thereafter. The annual report is a 1-page form stating total shares issues, officers, type of business, and addresses.

losteric 9y ago

> Mostly did it to ensure limited liability Did you consult with a lawyer? I've heard that "limited liability" doesn't really apply to one-person operations, it's intended to protect liability between multiple participants - though that may depend on the state.

wdrw 9y ago
From the research I did, limited liability is not at all to "protect liability between multiple participants", but indeed protects you from outside claims. It is indeed not bullet-proof (for example, if a one-person corporation owes taxes they can still go after your assets), but it is much better than nothing.
- losteric 9y ago
  My lawyer said that's not the case, at least in my state. LLCs protect against criminal and contractual liabilities, but not tort liabilities. I google'd it since I couldn't remember his exact legal reasoning, this blog post just about sums it up: https://www.litigationandtrial.com/2009/05/articles/attorney/automobile-accidents/can-i-set-up-an-llc-to-avoid-personal-liability-in-a-lawsuit/ https://www.litigationandtrial.com/2009/05/articles/attorney... Certainly better than nothing, but I was personally not concerned with criminal/contractual liabilities