Re: Incorporated Independent Contractors?

[Romay Jean Sitze <rositze -at- NMSU -dot- EDU>]

On Sat, 11 Nov 1995, Robert Plamondon wrote:

> RoMay Sitze writes:

> > I am not
> > yet at a point where I would consider incorporation, but an acquaintaince
> > of mine recently began this process on the advice of her CPA.  She has
> > been doing contract work for about 7 years.  What she told me is that a
> > lot depends on how much you are currently worth--and therefore how much
> > you have a need to protect.  This would suggest that for those who are
> > starting out in this field incorporation may be down the road a bit
> > yet. The advice to check with your CPA and/or get legal advice from a
> >good lawyer is still the best advice.

> You may be missing the point here.  A corporation has no special protection
> for its own assets; it's your PERSONAL assets that will be protected
> (in the event of business failure, a lawsuit, or, in the case of a "C"
> corporation, from the IRS coming through with a vacuum cleaner and
> sucking up all the money they can find).

I don't think I am missing the point.  However, I may not have
communicated my own point adequately.  I believe my friend was trying to
say that there is a balance point between the costs of incorporating and
the costs of the personal risk assumed if you don't incorporate--and that
balance point is one of the determining factors in making the decision to
incorporate.


        RoMay Sitze,  rositze -at- nmsu -dot- edu