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RE: To Inc., or not to Inc.

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If you are one-man office, incorporating doesn't do a whole lot nor does
it provide you with much protection. You can buy insurance for a small
price for the things incorporating would provide.

If you have employees, sole-proprietor is probably not the best option.
You will need to get a separate tax-payer ID and then the other
insurances like workers comp. become mandatory (at least in CA).

I am currently a one man show, but when I do start to hire people, I
will incorporate.

E & O insurance is a big cost but not mandatory. I would highly
recommend it because some clients demand it and I haven't had much
resistance to limiting my liability on most projects anyway - this keeps
your rates lower. Of course, the longer you are in business, the more
you insurance will cost because the number of potential claims grow with
every project.

If Bill Polhemus is still around, you should check with him. He recently
started his own business in your state. 

-gerard
Santa Clara, CA

-----Original Message-----
From: richard lewis [mailto:rlewistx(--nospam--at)juno.com] 
Sent: Monday, April 21, 2003 12:05 PM
To: seaint(--nospam--at)seaint.org
Subject: To Inc., or not to Inc.

I am starting up my own structural engineering business in East Texas.
I
am trying to decide whether to incorporate or not.  I know I need to
talk
to a lawyer and accountant, but I wanted to get some input from some who
have been in my shoes before and learned from experience which is the
best to do.  I know I am personally liable for my design and the
corporate shield would not protect me, but I was thinking of the
nonprofessional liability such as a car accident while traveling on
business or someone getting hurt while visiting my office.  Is it worth
it for these protections?  Also, I know each state has their own laws. 
Texas has the LLC option and the PC (Professional Company or
Corporation)
option.  Any advantage to either?  I believe the PC limits stockholders
to professionals, which is good because I think owners of an engineering
firm should be professionals.

Greatly appreciate any advice!

Rich

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