To Incorporate or Not?
The answer depends on the individual business. Here are a few pointers to bear in mind when approaching this complex issue
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By Karen E. Klein
Q: I am a real estate agent, and many people tell me that I should incorporate for the benefits of taxation on my income. Is this true, false, or should I be doing something else? -- S.T., Coral Springs, Fla.
A:
You need to talk to an accountant and give him or her specifics about your business -- how it functions and how money comes in and is spent -- before making this decision. The tax implications of incorporating and which type of corporation to choose are complex, and no generic "right or wrong" answer is possible. There are definite advantages to incorporating or forming a limited liability company (LLC), but annual expenses and paperwork are also involved that may make the process too cumbersome and expensive for you.