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<< Yeah I did that already. Pretty cool to have my own corporation, even if I am not making any money 🙂 All good entries so far, you guys are going to make it a difficult choice. >>
How much did it cost u to do it? Also, what are the benefits? >>
My CPA charged $50 for her advice, she was really cool 🙂 My lawyer, OTOH, quoted one price and then raised it later. So depends on whether I pay him that additional amount or not (leaning against it 🙂). The fees to the Secretary of State were $300, I included an extra $25 for expediting, and I paid about $75 for one of those cheesy corporate books. So about $400 is about the minimum (in TX) if you do it yourself, but I would recommend having legal counsel which costs more.
You can find many places on the web that will do it for $500 or less, including state costs, but I don't think they do much in the way of advice. Just simple FAQ on the types of corporations. Personally, I would stay away from them.
As far as benefits. there are a few good tax advantages. I chose S corp. which prevents double taxation and passes gains and losses to the shareholders. If your corporation is used to accumulate assets, depreciation can severly reduce your tax liability 🙂 The limited liability is probably the most important benefit, you are liable only for what $$ you start the corp. with. Some people have told me that you can personally be sued for your actions as a member of the corp., but I don't think that is right.
Read a book called "Rich Dad, Poor Dad" by Robert Kyosaki. It will be in your local bookstore, and is a great starter book for anyone that wants to go into business for themselves. In fact it should be required reading in our high schools, but that is another topic altogether.