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Making heelspurs.com a corporation

Posted by Scott R on 5/24/00 at 21:07 (020810)

I'm thinking of making heelspurs.com a Delaware 'close' corporation in order to provide me with some much-needed legal protection. The reason for 'close' type is because taxes are less compared to an S type if I get bought out. The C and close type corporations have to pay taxes in addition to my income taxes (double-tax), which is why most people choose S type which prevents this. It may be that I'm paying more in taxes than an S type right now because social security FICA is more for simple self-employment (sole proprietorship). The double-tax in a 'close' type Corp is bypassed if all the corporation's profits are paid as salary instead of dividends. The corporation has no taxes if it shows no profit. However, in directing funds like this, it may be that I'm not operating as a true corporation so that 'piercing the corporate shield' is possible (i.e. I still become personally liable to any lawsuit that can 'pierce the corporate shield' by showing in court I'm not operating as a real corporation). Then there is the problem of paperwork. I'm not much for extra paperwork. If anyone knows about this stuff, please provide any suggestions.

Re: Making heelspurs.com a corporation

Bob G. on 5/24/00 at 22:48 (020817)

Hello Scott,

I suggest you consult an experienced CPA or tax attorney. Preferably, one without foot pain, but a good one non-the-less. Shop around, compare references...

Good luck!


Re: Making heelspurs.com a corporation

alan k on 5/25/00 at 08:15 (020829)

I am going with S-Corp (yes, we're still working on the foot strengthener, which is better than anything else out there, and... oh but back to you). Everything about it seems better, unless perhaps you are intending to get bought out. I can't see that in our future so S-corp is the simplest way. I agree with Bob, though, that you should get a tax lawyer to contemplate anything else. They recommend it for s-corps too but I am still short of cash just to get started on production and patenting.

alan k


Re: Making heelspurs.com a corporation

Nancy S. on 5/25/00 at 08:43 (020833)

Scott! We aren't going to lose you, are we?

Re: Making heelspurs.com a corporation

Scott R on 5/25/00 at 09:02 (020835)

No, probably not, but i need to be prepared.

Re: foot strengthener

ChrisO on 5/25/00 at 10:57 (020846)

Hi Alan - what's the foot strenghthener?

Re: Making heelspurs.com a corporation

Beverly on 5/25/00 at 11:27 (020849)

Scott,

Getting incorporated is a wise move. Also, I have no idea how this would apply to a website, but when I had my antique store I had liablity insurance protecting me if someone got hurt while in the store. It was very cheap... Less than $200.00 a year. I had it added to my car insurance monthly bill; so I barely even noticed it.
It gave me alot of peace of mind.

Also, tax attorneys are more expensive than ordinary attorneys.
Attorneys are not known for their generosity, but since this website is health related, perhaps you could find an attorney who would do the paperwork at a reduced price.

I hope we don't loose you. You've done such a wonderful job. This website has helped me more than any other single thing, and there is nothing else like it on the net.
Beverly


Re: Making heelspurs.com a corporation

VickiJ on 5/25/00 at 12:38 (020860)

talk with the most savy ACCOUNTANTS and INSURANCE advisors you can afford...lawyers have very different agendas. Is there a professional organization for web people? My professional organization offers access to very savy pros who know all the ins and outs of these legal/insurance issues and you can get in on group insurance plans, etc.

Re: foot strengthener

alan k on 5/25/00 at 13:21 (020864)

I have been working on a foot-reformer to restore the versatility of the foot to the multiple tasks it is capable of, like climbing coconut trees, etc. Of course, we would use it just to have strong feet and arches. I have it already in use but the marketing and business end of it is very complicated. I kept telling the board two more weeks, but then something else would come up. I do think it will be only three more weeks now. Sometimes, though, I lose heart and wonder if I shouldn't stop sinking all my remaining credit into it.

It will be affordable and come with a video and Thai massage information which is crucial to its operation and to healthy feet and legs.

alan k


Re: foot strengthener

Nancy S. on 5/25/00 at 16:26 (020870)

Alan:

1. Will you be featured in the video?

2. Will we in fact be able to climb coconut trees after using your product, if we want to?

--Nancy


Re: foot strengthener

ChrisO on 5/25/00 at 17:52 (020884)

Are there any coconut trees in your barnyard, Nancy? Or will we have to go to the South Pacific to find them?

Re: foot strengthener

Laurie R on 5/25/00 at 18:09 (020886)

Hi All ,
I will go anywhere I am so sick of being in the house the barn sounds good to me and yes I still want to barten for everyone..........Laurie R

Re: foot strengthener

Nancy S. on 5/25/00 at 21:13 (020892)

Chris, sorry, no coconut trees in the barnyard. (No animals either.) However, I do have a very large old and wrinkled coconut IN the barn.
Laurie, oh dear, is your nuts level rather high today? Well come on over. It's only 3,000 miles or so, right?
--Nancy

Re: foot strengthener

alan k on 5/26/00 at 07:08 (020902)

Nancy, please resist coconut tree climbing, as it could result in serious injury or death.

alan k


Re: Making heelspurs.com a corporation

Bob G. on 5/24/00 at 22:48 (020817)

Hello Scott,

I suggest you consult an experienced CPA or tax attorney. Preferably, one without foot pain, but a good one non-the-less. Shop around, compare references...

Good luck!


Re: Making heelspurs.com a corporation

alan k on 5/25/00 at 08:15 (020829)

I am going with S-Corp (yes, we're still working on the foot strengthener, which is better than anything else out there, and... oh but back to you). Everything about it seems better, unless perhaps you are intending to get bought out. I can't see that in our future so S-corp is the simplest way. I agree with Bob, though, that you should get a tax lawyer to contemplate anything else. They recommend it for s-corps too but I am still short of cash just to get started on production and patenting.

alan k


Re: Making heelspurs.com a corporation

Nancy S. on 5/25/00 at 08:43 (020833)

Scott! We aren't going to lose you, are we?

Re: Making heelspurs.com a corporation

Scott R on 5/25/00 at 09:02 (020835)

No, probably not, but i need to be prepared.

Re: foot strengthener

ChrisO on 5/25/00 at 10:57 (020846)

Hi Alan - what's the foot strenghthener?

Re: Making heelspurs.com a corporation

Beverly on 5/25/00 at 11:27 (020849)

Scott,

Getting incorporated is a wise move. Also, I have no idea how this would apply to a website, but when I had my antique store I had liablity insurance protecting me if someone got hurt while in the store. It was very cheap... Less than $200.00 a year. I had it added to my car insurance monthly bill; so I barely even noticed it.
It gave me alot of peace of mind.

Also, tax attorneys are more expensive than ordinary attorneys.
Attorneys are not known for their generosity, but since this website is health related, perhaps you could find an attorney who would do the paperwork at a reduced price.

I hope we don't loose you. You've done such a wonderful job. This website has helped me more than any other single thing, and there is nothing else like it on the net.
Beverly


Re: Making heelspurs.com a corporation

VickiJ on 5/25/00 at 12:38 (020860)

talk with the most savy ACCOUNTANTS and INSURANCE advisors you can afford...lawyers have very different agendas. Is there a professional organization for web people? My professional organization offers access to very savy pros who know all the ins and outs of these legal/insurance issues and you can get in on group insurance plans, etc.

Re: foot strengthener

alan k on 5/25/00 at 13:21 (020864)

I have been working on a foot-reformer to restore the versatility of the foot to the multiple tasks it is capable of, like climbing coconut trees, etc. Of course, we would use it just to have strong feet and arches. I have it already in use but the marketing and business end of it is very complicated. I kept telling the board two more weeks, but then something else would come up. I do think it will be only three more weeks now. Sometimes, though, I lose heart and wonder if I shouldn't stop sinking all my remaining credit into it.

It will be affordable and come with a video and Thai massage information which is crucial to its operation and to healthy feet and legs.

alan k


Re: foot strengthener

Nancy S. on 5/25/00 at 16:26 (020870)

Alan:

1. Will you be featured in the video?

2. Will we in fact be able to climb coconut trees after using your product, if we want to?

--Nancy


Re: foot strengthener

ChrisO on 5/25/00 at 17:52 (020884)

Are there any coconut trees in your barnyard, Nancy? Or will we have to go to the South Pacific to find them?

Re: foot strengthener

Laurie R on 5/25/00 at 18:09 (020886)

Hi All ,
I will go anywhere I am so sick of being in the house the barn sounds good to me and yes I still want to barten for everyone..........Laurie R

Re: foot strengthener

Nancy S. on 5/25/00 at 21:13 (020892)

Chris, sorry, no coconut trees in the barnyard. (No animals either.) However, I do have a very large old and wrinkled coconut IN the barn.
Laurie, oh dear, is your nuts level rather high today? Well come on over. It's only 3,000 miles or so, right?
--Nancy

Re: foot strengthener

alan k on 5/26/00 at 07:08 (020902)

Nancy, please resist coconut tree climbing, as it could result in serious injury or death.

alan k