Tom, I agree with one exception: Sole proprietor doesn't have to worry about employee withholdings. Which is really what sent me on this tangent. Its such a burden to put all this withholdings & reporting crud on a "Mom & Pop" business. I've always filed & paid all my taxes but the paperwork and documentation is nearly unbearable.
On Mon, Jun 7, 2010 at 3:10 PM, Tom DeReggi <wirelessn...@rapiddsl.net> wrote: > There is ONLY one benefit to operating as a sole proprietor, in my opionion. > As a sole proprietor you are treated like a consumer, and by law you are > allowed to represent yourself in court. > If you want to sue anyone, or defend yourself against anyone's suit, you can > do it cost effectively without a lawyer. > When one person has only their own time as an expense, and teh other party > has to pay expensive lawyers, the one without expenses has a huge upper hand > in dispute resolution. > Corporations, Scorps, Partnerships, and LLCs on the other hand are required > to have a bar approved lawyer in the state they are having a legal battle > in, and an owner or stock holder does NOT have the right to represent > themselves or the company and in some cases not even a clear right to be > heard. There are a few exceptions to that, for example many states have > rules of higher presidence, for example to have the obligation to find the > truth, or to not waste the court's time and money, or prevent undue > financial harm due to frivilous claims. But thats another topic, and differs > per state. > > With the exception to the above, I could never recommend someone to select > to be a Sole Proprietor, if in the wireless business. > Being a LLC or S-Corp is NOT difficult, nor expensive. If it is, change > accountants, or do it yourself. > > Any simplicity sole pro offers can be achieved by an Scorp or LLC, other > than the actual tax return. For example, whetehr to be cash or acccrual > based in accounting and taxation. > Typical complexities with LLCs and S-Corps like seperate record keeping and > such are things that should be relicated with Sole Prop anyways. > > The second someone becomes a sole proprietor they loose so many options to > escape over taxation, that far outway the savings of sole proprietor's > simplicity. > > The only exception might be if the individual looking to be a Sole Prop, > only intends to have a very small number of residential subs, maybe under > 50, and really isn't trying to be more than the neighborhood court WIFI > aggregator. > > Now, there are many that operate as a Sole Prop, but I'd argue that they did > that only because they started out that way when they were not fully versed > on teh benefits of S-corp and LLC, and there may not have been a compelling > reason for them to change. But I'm not aware of many that convert back to > Sole Prop after being a LLC or S-Corp. The hard part of LLC and S-Corp is > teh upfront learning curve, not the maintenance afterwords.. > > I have however many times seen companies upgrade from S-Corp to Corp. S-Corp > can have some disadvantages when trying to find equity stock holders or > investors. > Usually the first thing they try to do is convert you to a Corp or LLC. > > Tom DeReggi > RapidDSL & Wireless, Inc > IntAirNet- Fixed Wireless Broadband > > > ----- Original Message ----- > From: "RickG" <rgunder...@gmail.com> > To: "WISPA General List" <wireless@wispa.org> > Sent: Monday, June 07, 2010 1:43 PM > Subject: Re: [WISPA] legal entity type - was taxes > > > Its tempting to use a known CPA that is versed in our industry but > I've had issues dealing with those out of state. With that said, I'm > curious as to feedback on another issue. Who here is doing business as > a "sole proprietor"? I've been an "S-Corp" for years but considering > switching back due to its simplicity. This Corp stuff doesnt seem > worth all the hassle. > Thanks! > > On Fri, Jun 4, 2010 at 12:05 PM, Marlon K. Schafer <o...@odessaoffice.com> > wrote: >> I'm with Travis on this one. Sometimes we take the entire hit at once, >> other times we spread it out. It kind of depends on what we need for >> deductions and what the equipment is. >> >> Our accountant has taken a lot of time to learn this industry and is >> really >> good. The phone number is 509.982.2922 if anyone is looking for a good >> one. >> >> laters, >> marlon >> >> ----- Original Message ----- >> From: "RickG" <rgunder...@gmail.com> >> To: "WISPA General List" <wireless@wispa.org> >> Sent: Thursday, June 03, 2010 11:55 AM >> Subject: Re: [WISPA] taxes >> >> >>> Travis, thanks for your input. I'm really looking for feedback as to >>> what our industry's standard is. I submit that the IRS does not look >>> at it as a "personal, business choice". I'd rather do it correctly now >>> than find out from the IRS I'm doing it wrong. >>> >>> On Thu, Jun 3, 2010 at 12:44 PM, Travis Johnson <t...@ida.net> wrote: >>>> This is a personal, business choice. There is no set answer. Some of our >>>> equipment we expense and some we depreciate. It all depends on what tax >>>> breaks you need now vs. later. >>>> >>>> Travis >>>> Microserv >>>> >>>> >>>> RickG wrote: >>>>> Everyone's favorite subject :) >>>>> >>>>> I'm getting mixed information form my accountants on this and want to >>>>> know what everyone else is doing. The basic question is this: Are you >>>>> expensing or depreciating the equipment? Equipment being radios (AP & >>>>> CPE), antennas, switches, firewalls, etc. >>>>> With the cost of the electronics being so low, its not making much >>>>> sense to depreciate. Which takes me to a second question: Have any >>>>> WISPs been audited by the IRS for this reason? >>>>> >>>>> Thanks in advance! -RickG >>>>> >>>>> >>>>> -------------------------------------------------------------------------------- >>>>> WISPA Wants You! Join today! >>>>> http://signup.wispa.org/ >>>>> -------------------------------------------------------------------------------- >>>>> >>>>> WISPA Wireless List: wireless@wispa.org >>>>> >>>>> Subscribe/Unsubscribe: >>>>> http://lists.wispa.org/mailman/listinfo/wireless >>>>> >>>>> Archives: http://lists.wispa.org/pipermail/wireless/ >>>>> >>>>> >>>> >>>> >>>> -------------------------------------------------------------------------------- >>>> WISPA Wants You! Join today! >>>> http://signup.wispa.org/ >>>> -------------------------------------------------------------------------------- >>>> >>>> WISPA Wireless List: wireless@wispa.org >>>> >>>> Subscribe/Unsubscribe: >>>> http://lists.wispa.org/mailman/listinfo/wireless >>>> >>>> Archives: http://lists.wispa.org/pipermail/wireless/ >>>> >>> >>> >>> -------------------------------------------------------------------------------- >>> WISPA Wants You! Join today! >>> http://signup.wispa.org/ >>> -------------------------------------------------------------------------------- >>> >>> WISPA Wireless List: wireless@wispa.org >>> >>> Subscribe/Unsubscribe: >>> http://lists.wispa.org/mailman/listinfo/wireless >>> >>> Archives: http://lists.wispa.org/pipermail/wireless/ >> >> >> >> -------------------------------------------------------------------------------- >> WISPA Wants You! Join today! >> http://signup.wispa.org/ >> -------------------------------------------------------------------------------- >> >> WISPA Wireless List: wireless@wispa.org >> >> Subscribe/Unsubscribe: >> http://lists.wispa.org/mailman/listinfo/wireless >> >> Archives: http://lists.wispa.org/pipermail/wireless/ >> > > > -------------------------------------------------------------------------------- > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------------- > > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > > > > -------------------------------------------------------------------------------- > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------------- > > WISPA Wireless List: wireless@wispa.org > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ > -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
