Santa Clara Office: 408.727.4111
Carmel Valley Office: 831.659.1115
Carmel Valley Office: 831.659.1115
Joseph W. McCarthy A Law Corporation
J.W. McCarthy Construction, Inc. License #677073 A, B, C-8, C-10, C-20, C-36
- » Home
- » Construction Law
- » Construction Claims
- » Construction Litigation
- » Mechanic's Lien Foreclosure
- » CSLB Disciplinary Action
- » Real Estate Transactions
- » Real Estate Litigation
- » Business Incorporation
- » LLC Formation
Business Incorporation
If you are currently doing business as a sole proprietorship or partnership, I urge you to consider incorporating. The two most compelling reasons to incorporate are to protect your personal assets from the debts of your business and to save money in taxes.
A corporation offers limited liability protection for its owners (the shareholders). This means that the shareholders are typically not personally responsible for the debts and liabilities of the business.
You and your family need not be personally subjected to losses arising from your business misfortunes. Sometimes unforeseen business problems arise. You may be working on a large project and, for whatever reason, you do not get paid and you are unable to pay your suppliers and sub contractors and your suppliers and sub contractors sue you. With a corporation, you and your family can have confidence in the security of your personal assets.
Doing business as a corporation, as opposed to a sole proprietorship, with a net income of $100,000 per year can save $4,000 to $6,000 annually in self employment taxes. The more profit you make the more money you save in taxes.
If you decide to incorporate, you will need the corporation to be licensed with the Contractors State License board. There are two ways to accomplish this. You may transfer your existing license to the corporation or obtain a new license. We can advise and assist you in this process.
Our law firm can incorporate you almost immediately and work with your tax professional to create a seamless transition from a sole proprietorship or partnership to a corporation.
If you are currently doing business as a sole proprietorship or partnership, I urge you to consider incorporating. The two most compelling reasons to incorporate are to protect your personal assets from the debts of your business and to save money in taxes.
A corporation offers limited liability protection for its owners (the shareholders). This means that the shareholders are typically not personally responsible for the debts and liabilities of the business.
You and your family need not be personally subjected to losses arising from your business misfortunes. Sometimes unforeseen business problems arise. You may be working on a large project and, for whatever reason, you do not get paid and you are unable to pay your suppliers and sub contractors and your suppliers and sub contractors sue you. With a corporation, you and your family can have confidence in the security of your personal assets.
Doing business as a corporation, as opposed to a sole proprietorship, with a net income of $100,000 per year can save $4,000 to $6,000 annually in self employment taxes. The more profit you make the more money you save in taxes.
If you decide to incorporate, you will need the corporation to be licensed with the Contractors State License board. There are two ways to accomplish this. You may transfer your existing license to the corporation or obtain a new license. We can advise and assist you in this process.
Our law firm can incorporate you almost immediately and work with your tax professional to create a seamless transition from a sole proprietorship or partnership to a corporation.