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Discussion Starter · #1 · (Edited)
I have some questions as I am going to incorporate my B license shortly.

- Assuming I will be pulling in roughly 85k per year into the company.

1. What is going to be the approximate cost to incorporate if I were to have a tax attorney/CPA prepare and submit the paperwork?

2. I will then have to have the business bank account which will also have payroll(for me only) and tax prep documentation service. Do you know what the approximate cost is?

3. I believe it is best practice to have an accountant to perform tax prep paperwork and submission correct? What is the general cost for a basic corporation like this?

4. Of course I will be able to write off health care, vehicle, office space ect,

5. Will the tax savings be worth starting and maintaining the B license, bond, payroll, accountant? Or would I be better off just going and working for another general contractor for around the same amount of money per year?



Any experience would be appreciated!

Thanks!
 

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You can write all that off any way without incorporating on your schedule C form 1040. Incorporating is for liability protection.

I incurred several separate businesses over the years and each cost between $350 and $600.

The least expensive way is to have a service company do it. They advertise in the back of entrepreneur and inc small biz magazines. I think the "company corporation" is one of many. Prol;y have a website. I remember seeing $50 plus state fees which used to run a few hundred bucks

Paychex, ADP, etc can do all the payroll processing and paperwork for 1 to 5 employees for $x per check.

The cost of tax returns varies by source. I have paid as little as $0 doing it myself and as much as $900 for a complicated return by a CPA.

I don't think your decision to work either or yourself or someone else ought to be based on income taxes. I work for myself because I don't want to work for someone else under any circumstances whatsoever and I am smart enough to pull it off.

I suggest figuring out your priorities lifestyle, income, job security, taxes, etc before jumping the gun on these important decisions. If you want to work for yourself you have to be able to sell market estimate and manage your non-production time very wisely. That is quite different than managing a site for someone else. What is it that you want from your career. It seems tax decisions are premature until you know that.

All the best regardless and hope this helps you.
 
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