Re: financial impact of incorporating

[Elna Tymes <etymes -at- LTS -dot- COM>]

Eric Ray wrote:

> Our accountant advised S corp, not C corp, because for
> our needs the S corp was easier, faster, cheaper, and as
> effective.

And we opted for a Limited Liability Company, chartered in the state of
Delaware but doing business in California, because it was fast (48 hours), easy
(three forms), and cheap (about $100 at the time, I think).  We pay the state
of California for the right to be in business, but we more than make up for it
by having the company foot the bill for all sorts of things that we'd otherwise
have to pay for out of a personal pocketbook.

One downside: it took us two years before California accountants figured out
just what to do with an LLC. Placement agencies around here STILL don't know
what an LLC is and we've opted to call ourselves a corporation when talking
with them, unless some subtle questioning reveals that they really do know the
difference between a corporation, an S corporation, a partnership, an LLP, an
LLC, and a simple DBA.  Comes back to the ol' techwriter question: who's your
audience?

Elna Tymes
Los Trancos Systems


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