Yes, it is a good idea. I have had lengthy talks with lawyers and accountants on this issue.
The protections both legally and the tax benefits to incorporating make it worthwhile.
Legally, a corporation is an entity, just like you are an entity!
If your business does something wrong and is sued, YOU are not being sued, the corporation is!
If you do not incorporate, YOU are being sued personally and ALL of your assets - home, cars, banks accountants - anything you own can be taken to pay for that suite.
Of course, you always want to do the right things so that no one will want to sue you. That is the best protection. But there are many people out there and many ways to view things. If someone wanted to sue you, they might.
Once something enters a court of law, there is no way to accurately predict with certainty what the outcome will be. You could be stuck with legal fees and penalties. If the suite is frivolous, you might be able to get the person complaining about your company to pay all the court fees.
There is danger for both the person / company being sued as well as the person doing the suing.
But to protect yourself personally, you should incorporate!
Depending on your thoughts, most writers will form either a sole prop, or LLC. Some who may have writers who aid in their overflow may incorporate. Keep in mind though those that fully incorporate generally do so as an S-Corp. This gives them the option of being taxed as a sole prop. or a C-Corp...I have really never known anyone to do a full C-corp due to the extensive paperwork, double taxation, among other drawbacks...It has it's advantages too don't get me wrong, but as a writer it wouldn't be advised unless you are doing so as an S-Corp.
Please note the most popular actually is an LLC due to the legal protection, and lower ability to be taxed. It is what is considered a flow through entity like a Sole Prop.
by Team A 5 years ago
Which one comes first: Forming a corporation or having a business plan?
by Silver Camphor 8 years ago
How important is it for an online business owner to understand the psychology of his target audienceWhen you are dealing with your customer face to face, then its very important to you get into the mind of your customer and try to understand his needs. But in online business, you dont even know...
by Andrew 7 years ago
What kinds of businesses can be started with only a $100 investment?
by Barbara 7 years ago
What inspired you to start an online business, passion or economics?How is it working out for you?
by Article Magick 7 years ago
Is the future looking good for online business builders?or should we take our virtual identities...and start to meet up in the real world? I've seen a few signs lately to indicate that the days of online marketing gurus are numbered and maybe it's time to pack up our bags and move into the real...
by Silent Assassin 10 years ago
In the end times according to the bible, there is meant to arise a one world goverment along with a false religion. Do you believe that a one world government will arise? and if so how?eg: Some conspiracy theorists have referred to the great seal as proof of the existance of such an organisation
|HubPages Device ID|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Google Analytics|
|HubPages Traffic Pixel|
|Google Hosted Libraries|
|Google AdSense Host API|
|Conversion Tracking Pixels|
|Author Google Analytics|
|Amazon Tracking Pixel|