corporations
Corporations are wonderful inventions; they allow you to add an additional layer of professionalism to your business; they can give you an added level of liability protection; they can be used to protect your non business related assets; they can be used to facilitate estate planning and ownership succession issues and they save you taxes. Make no bones about it: the #1 reason for forming a corporation to operate your business is to save taxes; we’re not going to debate the issues here, but we have a more thorough discussion here.
Administratively, corporations are a lot easier than most people assume, perhaps due in part to the efforts of attorneys who are more interested in liability protection and the risk of “piercing the corporate veil” than they are about taxes. Many people ignore much of the corporate form, especially those who use “close corporations” and do just fine when it comes to tax matters. What then are the actual costs of having a corporation?
In California, the Secretary of State will require an $800 initial fee and a $100 initial filing fees for your Articles of Incorporation and if you use a lawyer, there will be legal fees (I would check the internet unless you have a trusted source). Once its formed, however, there is little additional cost. For many people an S corporation is the way to go. There are no additional 
taxes imposed at the corporate level except for the annual minimum $800 California tax. Sure, there is an extra corporation income tax return that must be prepared, but this is offset by the fact that no Schedule C is required for your personal return.
fees
But thats just our spin on the subject; others may advise you differently. However, we believe in the above advice and for as little as $20 a month added to your bookkeeping bill, we will take care of either your Schedule C OR your corporate return if you choose to incorporate. Plus, you have the security of knowing that you can call us anytime with your questions about your Schedule C or corporation matters and we won’t nickle and dime you for extra fees.
How’s that for putting your money where your mouth is?
