Guest post by Deborah Sweeny, a mother, aerobics instructor and CEO of MyCoporation.
The poor economy is triggering startups. With millions unemployed, who better to work for than yourself? We are seeing a trend that many housewives, whose husbands have recently lost their jobs, are starting small businesses to generate income for their families. However, there are several important and strategic tax and incorporation routes entrepreneurs should be made aware of.
For many entrepreneurs eager to start their own business, simply getting the proper forms and filing completed to get off the ground can be a daunting challenge. Besides making the decision of which business structure to choose, the process of filing the paperwork—and, of course, finding the scarce start-up cash to pay for it—can be overwhelming.With help from MyCorporation, a Los Angeles-based business that provides incorporation and LLC formation for businesses in all 50 states, thousands of individuals have realized their dream of small business ownership. By providing an online resource for securing the proper legal business startup, maintenance, reporting and documentation—including intellectual property protection—MyCorporation makes it easy for entrepreneurs to focus on launching and running a successful business, rather than becoming bogged down in legal documentation.
Some things to consider when incorporating:
- Individuals who incorporate as an S-corporation can mitigate the amount of self-employment tax they pay. S-Corporations only have to pay self-employment tax on the amount of salary paid to the employee-owner. Any remaining income paid as a distribution is not subject to the self-employment tax, potentially offering thousands in savings!
- A Corporation has lower tax liabilities and can write off certain expenses that sole-proprietors can’t. For example, Corporations can deduct 100% of the health care coverage that it pays to its employees. The corporations have additional benefits that a tax professional can explain.
- Based on IRS data, incorporated small businesses have a lower likelihood of being audited than non-incorporated individuals. Individuals were more than twice as likely to be audited as an S-Corporation in 2009.
About the company
MyCorporation is a leading provider of online document filing services for clients who wish to form a corporation or limited liability company.
For nearly ten years, MyCorporation has helped small business clients and real estate investors incorporate their businesses in a reliable and affordable manner.
In addition to offering document filing services for online incorporation, MyCorporation also offers trademark searches and applications, copyright registrations, DBA registrations, registered agent services and many more products that help customers protect and maintain the legitimacy of their businesses.