I think forming an LLC, or Incorporated business is great. However, talk to a lawyer/attourney if you can, because a single member LLC or a single stakeholder Inc will NOT necessarily protect you from the liabilities you're looking to protect yourself from. The misconception most people have is that the incorporation (rather than obtaining sole proprietor licenses) is enough to shield themselves from legal action from passing through to their personal assets, but with single-owner LLC/Inc's, many judges will still pass through judgements to claims on personal assets if you do not follow all the rules around LLCs and corporations, such as quarterly and/or yearly meetings with minutes, state filings, etc.
Spend the extra time to research your decision thoroughly. It's a lot of work for a one-person company, and it may not make sense for everyone. But, if you've determined that it actually is, congrats! -Kevin On Jul 18, 2009, at 5:24 AM, Rick wrote: > I figure a lot of you are probably independent contractors so I have > a couple quick OT questions... > > I currently work full-time in a company as W2 employee, but will be > picking up side contract work. I'd like to become incorporated to > avoid 1099 implications and to have some basic liability asset > protection. > > I see that you can file to register to become incorporated online. > > 1) There seems to be numerous sites that allow you to apply for > becoming incorporated. Are any better than others? is there > something to look out for when doing it online that could be a > 'gotcha' that screws me? > > 2) Is just setting up the most basic S-Corp fine (I don't plan to > have employees or plan to be doing a lot of work out of state.) The > first google hit for applying shows some of the packages > http://www.incorporate.com/choosing_incorporation_packages.html > Is the basic $99 package fine? (Does it protect me enough from > someone taking my house if they tried to sue?) > > 3) Approximately how long does it take for everything to go through? > I'd like to start doing work for someone in a couple of weeks and of > course would want the checks paid out to my company name I come up > with. (Worse case, I'll have him pay me at a later date rather than > weekly until the name gets registered. I'm just hoping this doesn't > take a long time to process.) > > Thanks for any advice. > > -- > Rick R > > > --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Ruby on Rails: Talk" group. To post to this group, send email to rubyonrails-talk@googlegroups.com To unsubscribe from this group, send email to rubyonrails-talk+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/rubyonrails-talk?hl=en -~----------~----~----~----~------~----~------~--~---
