AboutJohn A. Troland Expertise I am a professional accountant, small business consultant and business
plan writer with 43 years experience ( I am also listed on allexperts
website as a volunteer in the category of Writing Business Plans).I can answer questions on what needs to be done to start a small business; forms of legal organization;financing for the business; need for a business plan; questions related to the purchase of a
business; risks and rewards of owning a small business; marketing and promotion questions and questions concerning bookkeeping, accounting
and tax considerations when starting a small business
Experience
Past/Present clients numerous clients over 43 years in retail, wholesale, service and the
manufacturing sectors
Question We have a trucking company we started up last year, in Texas. Everything is currently under our personal names, including the semi-truck, trailer, house, and cars. We are running the business from our home. We are planning on adding another truck & trailer to our business this year, and hiring an outside driver.
We are thinking about incorporating the business now since we are growing, and just in case something may happen out on the road.
What are the advantages and disadvantages of incorporating?
Do you think it would be a good idea to incorporate?
Are there any tax benefits to having an incorporation?
Are we able to have the house under the incorporation also, since we use it as part of the business?
Are we able to incorporate ourselves, or should we hire a lawyer to do so? (we have seen kits we can purchase with all of the paperwork)
Thank you for your help. Look forward to your reply.
Answer Selena: Do it NOW/ASAP!!!!! --INCORPORATE!!!! it is not only "...a good idea to incorporate; it is a MUST to protect your home. Right now if you/company (they are one and the same now) were sued for say $950,000.00 and your business insurance only covered say $500,000.00 your house would need to be sold to satisfy the balance of a jury lawsuit settlement
in excess of the insurance amount. More kinds of business expenses can be deducted/written off with a corporation. The corporation would RENT a portion of your home, say one room, used as the company business office. Do NOT try incorporating yourself. The risk of not properly doing it is TOO GREAT. I would STRONGLY suggest that you consult with BOTH a small business attorney as well as a small business accountant. In addition you may wish to consult with SCORE/Service Corp of Retired Executives. They offer FREE one on one advice, counseling and assistance in ALL AREAS of business. Contact them at 1-800-634-0245 or at
www.score.org I am in my 43rd year as an accountant, tax and business consultant. You will praise me many times over for doing as I suggest herein.
