CompuServe Messages

Bailey, I'd talk to another CPA if I were you (particularly one from another firm) as I beleive you have been slightly misguided. S-Corps are good, but they are not always neccessary. This of course is dependant upon where you live, the state laws there, and how you manage your business, naturally. The tax break is not all that much greater for a sole proprietary business that is incorportated as opposed to one that is not. In Illinois, I can operate as a contracter (self employed) and get almost all the tax breaks everyone else does. EVERYTHING is practically tax deductable. From Gasoline and car maintnance to the electricity that my business uses out of my house, ( 18% of my morgage and utilities ) I even hired a guy to mow my grass this year cuz I didn't have the time, this too is deductable, there are certain guidlines and limitations to adhere to. Goto the library. Laws are different for every state. And there are a few tricks involved to lessen the chance of an audit, for instance, here, I can claim 20% of morgage, etc as a home business, but anything over 18% gets flagged for an audit! I am not incorporated but I will be by May. The ONLY reason to incorporate as a sole proprietor is to seperate you from your business for liablility purposes. This is the ONLY reason I will be getting incorporated, to protect my family from my business debts and any possible law suits that I may get to enjoy with all my luck. If I was single, I would not consider getting incorporated because if I got sued or too far in debt I could always drop off the planet, ( I know how to do that) however, I am responsible and need to protect my family. Besides that, my wife is a staff account for a CPA firm and she says I have too. (g) I would get a second opinion if I were you. Also, it should not cost you more than $300 to incorporate. You can also do it all yourself. Check a few months back in a Compuserve issue for an ad for mail order incorporating. There is a firm in Delaware that will FAX you your legal corps stuff and in a matter of hours you can be incorporated for 25 to 50 bucks, depends on what state you live in. Do your books yourself and save a bundle, you'll be able to buy another deck. Merlin G. Farmer