OT contracting and incorporation

[Kareem Shehata]

> -----Original Message-----
> From: owner-tlug-lxSQFCZeNF4 at public.gmane.org [mailto:owner-tlug-lxSQFCZeNF4 at public.gmane.org] On Behalf Of Scott
> Elcomb
> Sent: Tuesday 25 September 2007 17:24
> To: tlug-lxSQFCZeNF4 at public.gmane.org
> Subject: Re: [TLUG]: OT contracting and incorporation
> 
> Curious.  If you're *self-employed* - what's the point of incorporating?

Taxes and liability.  As sole-proprietor, you are liable for basically
everything.  Once incorporated, there are certain limits.  I can't really go
into much more detail myself.  IANAL, and has been pointed out this is
really a question for a lawyer or an accountant.

> Kinda hard to make a board out of one person, isn't it?

Doesn't matter really.  It's still the separation of liability and taxation.
Also, if you eventually grow to more than one person then you have the
structure in place.  Depends entirely on the nature of the company.

> Not trying to be contrary (it's been one of those days) and obviously
> an accountant and lawyer would be the best source of advice.  Just
> seems a little overkill to incorporate a one-person company...
> (Granted, I might be misreading the original question.)

Exactly, but that decision must be made and must be an informed one.  Each
company is different.

-kms


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