I incorporated my business about 4 years ago. Here's what my attorney told
me: In corporation will not help for negligence for engineering mistakes,
it will help you for things you can not get insurance for, sexual harassment
and disgruntled former employees. It will also help if you are driving to a
job or meeting and you cause a serious car accident.
There are some tax advantages also: Any wages are taxed the same if your
incorporated or not, but any dividends you pay yourself are not subject to
social security taxes. Also (check with your CPA) being able to expense
your rent from your home and health insurance costs.
The disadvantages: More bookkeeping, you must deduct federal withholding
from each paycheck and pay taxes each month.
Hope this helps.
----- Original Message ----- >
> As Dennis and others pointed out, you can't "shield" yourself from
> negligence if you are actually negligent. But if that was the only sort of
> litigation we had to fear, our lives would be much better.
> Unfortunately, that isn't the climate we face today.
> William L. Polhemus, Jr., P.E.
> Polhemus Engineering Company
> Katy, Texas
> Phone 281-492-2251
> Fax 281-492-8203
> -----Original Message-----
> From: Jason Kilgore [mailto:jkilgore(--nospam--at)leok.com]
> Sent: Wednesday, April 04, 2001 9:02 AM
> To: seaint(--nospam--at)seaint.org
> Subject: Re: Engineering from Home - Protecting Perso
> I'm getting the impression that we're talking about two different types of
> lawsuits here.