Post from pdm -
Am I heading down the right road here or is there a better way?
As always, thanks in advance. I appreciate the help.
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No, the route you're going is the best way to handle the increase in income you expect.
First, there will be tax consequences to just about everything I am going to suggest, and you must seek good tax advice that fits your particular situation!
You can transfer the title of any motor vehicle into the name of the corporation and, since the vehicle is now owned by the company, any and all expenses, taxes, upkeep, payments, and the like are now 'corporate expenses' and can be deducted from the gross income received by the company. The result - what you used to pay for out of your own pocket with your after-tax dollars, will now be paid by the company with its pre-tax dollars.
All those records that you had to keep before, trying to figure out what portion of your vehicle milage and expenses were business-related and therefore deductable, and what was merely for your personal use, and therefore nondeductable, are unnecessary now.
If the corporation owns the vehicle, all of its expenses, etc., are deductable from its gross income.
And then there's health insurance which your company can purchase for its employees (you!) and which is a legitimate business expense.
I could go on and on. There are many reasons to incorporate, and few reasons against it.
Always, remember, however, that everything has a cost and with corporations you must dot the i's and cross the t's a lot more carefully.
There are also tax consequences for just about everything involving corporations, so be certain that you get good tax advice.
BTW, I have a CPA that I pay big bucks to handle my 'Eric The Hun, Attorney at Law, A Professional Corporation' business. If he screws up, well, let's just say I know the direction to the Courthouse!
Eric The(LegalBeagle)Hun[>]:)]