NYCPHP Meetup

[Kristina Anderson]

> Tedd wrote:
> 
> I recommend seeking the advise of an attorney and having him/her draw 
> up the articles of incorporation. You can discuss with the attorney 
> what the advantages and disadvantages are of the different types of 
> incorporation (e.g., S, C, LLC). Each has it's own tax structure.
> 

Absotively.  A business partnership is like a marriage and there is a 
LOT of detail to these agreements, and consequences that are way more 
complicated than if you just go it alone as a sole proprietor.


> Additionally, if you pierce the corporate vail by not passing income 
> through the corporation but taking payment directly, then you forfeit 
> the corporate protection. Likewise, not having an annual minutes 
> meeting can dissolve the corporation leaving you unprotected. There 
> are at least a dozen rules like this that you must follow. So, hire 
> an attorney, have him/her prepare the papers, and ask what your 
> responsibilities are. There's no reason to start up a corporation if 
> you don't know how to use it or what your responsibilities are.

What Tedd is saying above is true -- that having an entity like this is 
a PITFA because once you form it, that's JUST the beginning of the 
fun.  A cursory look at the "Corporate Tax Forms for NYS" will disabuse 
you of any idea that this is not a whole new eggplant.

Kristina