Beefy Boxes and Bandwidth Generously Provided by pair Networks
Come for the quick hacks, stay for the epiphanies.
 
PerlMonks  

Re^4: On Code Ownership

by 5mi11er (Deacon)
on Jun 19, 2005 at 13:14 UTC ( [id://468110]=note: print w/replies, xml ) Need Help??


in reply to Re^3: On Code Ownership
in thread On Code Ownership

(Assumption: you live in the USA, I'm not at all familliar with other localities...)

Becoming your own company, ie. Incorporating, is actually relatively cheap. To do so, one simply needs to find a lawyer that does this, and pay them. I've had my own corporation setup for about 5 years now, even though I also hold down a "normal" job. Back when I incorporated, it cost less than $700 for the whole setup.

There are several reasons it is a good idea to create a corporation, taxes is one, and protection is the other big one. It protects your client, as they don't have to worry about tax and employment issues that could come up if they did a 1099 type payment. And, it protects your personal assets should something happen in the line of business, and someone wants to sue the corporation (this isn't fool proof, ask the lawyer about the details).

It also frees you up to be able to get or offer other benefits. Buying wholesale is easy, just hand them your corporate tax id number. And in general Companies (ie. people within these companies) are much more at ease when dealing with a corporation than they are when dealing with individuals.

So, just because you don't plan to make this corporation the center of your universe now, I still suggest you look into the benefits that can come from setting it up...

-Scott

Replies are listed 'Best First'.
Re^5: On Code Ownership
by techcode (Hermit) on Jun 19, 2005 at 15:11 UTC
    I'd like to comment on this :
    And, it protects your personal assets should something happen in the line of business, and someone wants to sue the corporation (this isn't fool proof, ask the lawyer about the details).

    It just happend to be - that I was looking into this matter as I want to make my own firm/company.

    While there are obvious differences between USA and Serbia (where I live) this is what I found out (actualy most of knowledge came from some USA specific books):

    Unlimited liability - basicly you are the company, and you are solely responcible with your own property (house, car, wife, children, just kidding :)

    Limited liability - like INC and stuff. You are not responcible with your whole property

    But as allways in life there are few catchs. BTW. All this is Serbia specific, but should be about same in USA. It's much cheaper to found and run first one. It's also easier from book keeping point of view. And easier to close it. The second in more expencive, and more complicated to run, canot close it easily ...etc.

    O and, I could add that it is seems much easier to sue someone in USA than here :) Atleast from the movies and what others told me - I still havent been to USA.

    Also, in the case of limited liability - dont think that you are 100% secured. As you will be the CEO, worker ..etc. In case of problem, you are going to be responcible person - so you can still be sued.

    This came from USA specific document. Author wrote about starting your own web design business (very similar) in USA. He recommended unlimited liability for starters. And a good lawyer. So that he would write you contract template that you would use with clients, give recomendations ...etc
    He also mentioned that, generaly you couldnt be sued for more than what client paid you - especialy in that business.

    The doc that I'm talking about is : "The webmasters BUSINESS Masters Course" - sitesell.com - by Mark Frank; You might want to take a look as it's USA specific and is good enough (best I could find actualy) on that matter.

Log In?
Username:
Password:

What's my password?
Create A New User
Domain Nodelet?
Node Status?
node history
Node Type: note [id://468110]
help
Chatterbox?
and the web crawler heard nothing...

How do I use this?Last hourOther CB clients
Other Users?
Others avoiding work at the Monastery: (4)
As of 2024-03-29 05:58 GMT
Sections?
Information?
Find Nodes?
Leftovers?
    Voting Booth?

    No recent polls found