77.40 Incorporate

903. My diet is simple.  Eat plant based vegan diet, low fat, some starches.  Do not eat when my blood sugar is over 100.  Break the fast with a protein shake and fruit.  Test again 2-4 hours later to see if another meal is in order.

904. I was a very small part of my daughter’s life when she was growing up.  Now is my time to step up and create a framework for her to have support as an adult.

905. One adjustment to my morning routine is to take nothing to the gym except my homeless pack.  That’s just for carrying home small items from Publix. I can shower at the gym, but I need to keep my bug out bag ready and not use it daily.  Publix and Planet Fitness both have free coffee, so even a 64 cent savings over McDonald’s is okay by me.

906.  https://internationalman.com/articles/runaway-slaves/

907. Visitors to walkaboutsolopreneur.com are encouraged to create a corp or LLC for their side hustle businesses.

908. For federal tax purposes, medical expenses can include the cost of medical care in a nursing home, home for the aged, or similar institution, for the taxpayer or his or her spouse or dependents. It can include the cost of meals and lodging in the home if a principal reason for being in the home is to get medical care. If the reason for being in the home is personal, such as that the person is too frail to care for him or herself at home, the deductible expenses must exclude the cost of meals and lodging. However, in such a case, a taxpayer can still include in the medical expense deduction that part of the nursing home payment that is for medical or nursing care (Medical and Dental Expenses Including the Heath Coverage Tax Credit, IRS Publication 502, 2010)

https://www.cga.ct.gov/2011/rpt/2011-R-0412.htm

909. https://www.inc.com/kimberly-weisul/eleven-questionable-tax-deductions.html

910. I’m getting it in my mind that I don’t want to take an AFA tour or use a matchmaker.  I do want to tour China.

911. https://www.youtube.com/watch?v=8PBdqpePt1k

912. I have to purchase my fresh foods on a daily basis.  I don’t eat the same food as others in the house, but they think nothing of taking what I have purchased without asking.  I will buy an onion for a soup, and they will cut it up and leave part of it to go bad in the refrigerator.  Buy and use immediately.

913. Going truly ascetic will mean not taking the backpack to the gym.  Carry as little as possible.  What it will eventually mean is exercising anywhere and not using equipment.

914. Good look at social security:

https://newzealandworldnews.worldnewsnetwork.co.in/2019/02/03/55-all-inclusive-social-security-facts-the-motley-fool/

915. Check out business credit card affiliate programs.


Benefits of Forming a Corporation

{Corporations act like shields for the owner and allow you to deduct certain expenses that are taxable for an individual business owner.|A great way to build some legal protection into your business is to incorporate.}  {However, the benefits of incorporating might not outweigh the restrictions on corporations depending on your exposure to creditors.|The benefits entrepreneurs gain by forming their business as a corporation typically outweigh any perceived disadvantages. These benefits are, in many cases, unavailable to sole proprietorships and general partnerships.}

{You can form a 1-person Corporation or LLC with one owner in any state and receive all the same benefits as a larger company.|Individuals can enjoy the benefits of incorporation, and these can be crucial to maximizing your Walkabout Solopreneur side hustle.}

1. Limited Liability.

{Corporations provide limited liability protection to their owners (who are called shareholders). Typically, owners are not personally responsible for the debts and liabilities of the business.  Creditors cannot pursue owners’ personal assets, such as a house or car, to pay business debts.|Once a new business owner successfully completes the incorporation process, the owner has a limited amount of legal liability for the corporation's business activities and debts, because in the eyes of the law the corporation is a separate entity. In order to maintain this limited liability, the corporation's owners must follow a number of legally required corporate formalities.|A Corporation or LLC is its own separate legal entity and can protect your

personal assets, such as your home and personal savings, from business debt or lawsuits.|One of the greatest benefits for incorporation is its limited liability against the shareholders. Any debt or liability against a specific shareholder remains separate from the corporation. Likewise, the inverse is similarly true. Any debt or liability against a corporation does not open the doors of shareholders' assets to the creditor. The shareholder's liability in any corporate debt or liability is limited to what the shareholder invested.|Many people incorporate to gain limited liability to protect personal assets from company liabilities such as lawsuits or creditors.| A corporation is an entirely separate legal entity from its owners and shareholders. That means that in situations where the company is being sued or the corporation owes debts, the owners and shareholders cannot be sued or held personally liable for the debts.|Corporations offer limited liability risks to their owners (shareholders). In most corporate structures, shareholders are not personally liable for the debts and other liabilities for their business.}

2. Credibility.

{Incorporating may help a new business establish credibility with potential customers, employees, {vendors|suppliers}, and partners.|The “Corporation” or “LLC” ending on the company name indicates an official, registered company.|Distinguishing yourself from the competition by establishing a professional identity helps increase credibility with your customers and the public. Most businesses choose to incorporate to prove their legitimacy to both customers and suppliers. Adding "INC." or "LLC" after your business name gives you the professionalism that many customers are looking for.| A business with an Inc. or LLC extension after its name often sounds more credible to potential customers and clients. You’ll most likely attract more attention from the community if you choose some form of incorporation or LLC. Being incorporated can also help protect your business name in the state in which you do business.}

3. Unlimited Life.

{A corporation’s life is not dependent upon its owners. A corporation possesses the feature of unlimited life, meaning if an owner dies or wishes to sell his or her interest, the corporation will continue to exist and do business.|Regardless of what happens to shareholders or directors or employees, the corporation itself continues to exist in perpetuity or until the directors and shareholders decide to dissolve the corporation.|A corporation remains a corporation even if the owner leaves, dies, or sells off the company -  perpetual existence.}

4. Transferability of Ownership.

{Ownership in a corporation is typically easily transferable. (However, there are restrictions if you elect subchapter S ownership.)|By incorporating a business, the personal finances of an owner or partner remains separate from the finances of the corporation, and allows the business to continue without disruption. In the event of an unfortunate death of an owner or partner, the business is generally dissolved regardless of the wishes of the owner or partner. All of this could easily be avoided by incorporating the business as a separate entity.|For IBMs* (Introvert Boomer Males), your corporation can be a money earning legacy to pass on to your children, grandchildren, or your last wife or partner.}

5. Tax Advantages.

{Thanks to the current federal tax code, corporations can take advantage of tax treatments the average person could only dream of.|Big corporations have long maximized profits by taking advantage of the tax code.  To a lesser extent, so can close corporations, if permitted in your state.}  {Corporations often gain tax advantages, such as the deductibility of health insurance premiums paid on behalf of an owner-employee; savings on self-employment taxes, as corporate income is not subject to Social Security, Workers Compensation and Medicare taxes; and the deductibility of other expenses such as life insurance.|Are you a corporation looking to provide health insurance to your employees? You can claim a deduction for the employer-paid portion of their health premiums.|Incorporating also can reduce a business' taxes if it earns a lot of revenue, make it easier to seek venture capital or other outside investment, and in some cases provides more flexibility for your business.}

{For information on the types of tax advantages your business may gain by forming as a corporation, consult an accountant or tax advisor.|Numerous books are available to help you maximize the benefits of your corporation, but laws and tax regulations change frequently.  You may prefer to use a local accountant or an online incorporation service.}

6. {Retirement plans – Retirement funds and qualified retirements plans, such as a 401(k), may be established more easily.|A corporate pension plan is a formal arrangement between a company and its employees – or the employees' union – that provides funding for the employees' retirement. In most cases, both employer and employees make regular contributions to the plan. In the case of your side hustle, you may want to make all of the contributions to the plan, as was done in the past.}

7. Raising Capital.

{Capital can be raised through the sale of stock. Additionally, many banks, when providing a small business loan, want the borrower to be an incorporated business.|A corporation's ability to issue stock is a strong selling point to those willing to invest capital in a business venture.|If you’re trying to raise capital by selling shares in the company, you will need to be incorporated. You will also need to form a corporation if you plan to go public in the future.}

8. Deducting Losses

{All companies can deduct business losses in future or past years, but incorporated companies have no limit on loss carry-forward or carry-back, while unincorporated companies face significant restrictions.  While individuals do have a limited ability to apply a previous year’s business losses to a future year’s tax return, it’s nothing compared to what is available via the corporate tax code.|Net operating loss carryforwards, or NOL carryforwards, allow companies to use losses from previous years to offset profits in the future, a benefit that can allow very profitable companies to pay no income taxes.}

9. Other Tax Benefits.

{Corporations can defer some income until the following year, such as profits earned overseas.|There are few restrictions for corporations on reporting capital losses, which can generally be carried back three years and can be carried forward for up to 15 years.}

{Also, the corporation can deduct certain expenses, such as start-up costs, from shareholder dividends.|Corporate income is not subject to Social Security, workers compensation, and Medicare taxes, and owners do not pay self-employment taxes.}

{A corporation can also provide employees certain benefits tax-free, such as health insurance and up to $5,250 in education reimbursement, and deduct those expenses from corporate profits as long as they are available to all employees.|While individual Americans get taxed based on their adjusted gross income, corporations get taxed on net income. The difference between gross and net is a big one.  It means corporations only get taxed on whatever’s left after they’ve paid every possible expense under the sun. While actual people are afforded a few credits and deductions to lower their tax liabilities, it’s nothing compared to the deductions available to corporations, which are allowed to use Generally Accepted Accounting Principles (GAAP).  GAAP allows companies to deduct expenses like rent, gas for their car fleets, cell phone bills for their employees, and tickets for sporting events.|The opportunity to use a medical reimbursement plan. This enables the corporation to deduct all medical payments up to a fixed dollar amount (set by the corporation, not tax law) while shareholders or employees enjoy this benefit on a tax-free basis.|Corporations may deduct 100% of the cost of health and life insurance premiums paid on behalf of owners and employees while sole proprietors filing an individual tax return may currently deduct only 60% of medical premiums.}

10. Corporations Don’t Get Sent To Prison When They Break The Law.

{When an individual is convicted of a serious crime, he or she generally ends up in prison. Not so for corporations, which generally escape with a fine and a stern note from the principal, chastising them for their misbehavior. Even worse, when a corporation is busted for fraud and forced to pay up, it’s not the culpable executives who have to foot the bill, it’s the shareholders.|Because corporations cannot be incarcerated like individuals, penalties generally involve fines. In certain cases, corporate officers or executives can face criminal penalties for acts of corporate fraud or negligence, but it is rare.|Fraud involves making material misrepresentations or using deception for the purpose of financial gain. If a corporation commits fraud, it is possible to sue the corporation in court to seek financial compensation as well as punitive damages, but remember, big corporations have an army of attorneys to fight any charges.}  

{Look at the recent fraud at Wells Fargo.  The Wells Fargo account fraud scandal is an ongoing controversy brought about by the creation of millions of fraudulent savings and checking accounts on behalf of Wells Fargo clients without their consent.  Not one executive went to jail.|HSBC admitted that executives for years ignored warning signs that drug cartels in Mexico were using its branches to launder hundreds of millions of dollars through the U.S. The bank also acknowledged that its international staff had stripped identifying information on transactions through the U.S. from countries including Iran and Sudan in order to evade sanctions.  Still, HSBC remains “too big to jail”.}

11. Corporations Can Shift Income And Expenses Around To Different Countries

{How wonderful it is that your everyday individual expenses are deductible, and you can book your income in jurisdictions with low tax rates and book your expenses in jurisdictions with really high tax rates in order to minimize your overall tax liability?  As a U.S. corporation, you can do that. As an individual, you cannot. The practice is called “income shifting,” and it’s common among U.S. multinationals.|Companies can shift income out of high-tax countries into the U.S., and from the U.S. to low-tax countries. Such behavior certainly lowers worldwide tax liabilities for larger U.S. manufacturing companies and appears to significantly lower their U.S. tax liabilities as well.  At first, this may not be something you can take advantage of, but if you become a perpetual traveler, it’s a strategy to consider.}

12. Credit Card Interest Expenses Are Deductible For Corporations, Not For Actual People

{Interest expenses for credit card purchases of business items, however, are completely deductible.|A Corporation or LLC can build a new credit profile separate from the owners to receive loans, credit cards, and lines of credit.}

13. Power Structure.

{The corporate business form has an established power and management structure: directors, officers, and shareholders. Each group has its own set of clearly-defined roles and responsibilities within the corporate framework.|The typical corporation organizational structure consists of the board of directors, officers, employees, and shareholders, or owners. There is no limit.  Your corporation can have as many as are desirable or expedient to do business. On the other end of the spectrum, one individual can simultaneously be the sole shareholder, the director, the officer, and the employee. This is typical of new corporations, especially your new side hustle.  You can have as many or as few people as necessary to conduct business.}

The downsides of forming your own close corporation include:

1. {Corporate Formalities|Paperwork}.

{Corporations are required to follow both initial and annual record-keeping tasks, such as holding and properly documenting initial and annual meetings of directors and shareholders, adopting and maintaining bylaws, and issuing shares of stock to the owners. You need to maintain the paperwork to prevent a creditor from piercing the veil and attacking your personal assets.|All corporations are required by law to observe a number of corporate formalities to ensure that the corporation is operating as a separate entity, independent of the business's owners. These steps include holding regular meetings of directors, keeping records of corporate activity, and maintaining the corporation's ongoing financial independence.|Corporations are required to hold formal board and shareholder meetings, and to keep accurate minutes of those meetings. In addition, there are a series of tax forms that may need to be filed with federal, state, and even local officials, including corporate taxes, taxes on salaries and other employee compensation, and profit distribution to shareholders.|As a corporation, you’re required to file Articles of Incorporation, bylaws, corporate minutes, certificates of good standing, and other paperwork your state may require on a regular basis.}

2. Double Taxation.

{C corporations are subject to double taxation of corporate profits when corporate income is distributed to the owners in the form of dividends. The double tax is created when tax is first paid at the corporate level. If corporate profit is then distributed to owners as dividends, the owners pay tax at the individual level on that income. The double tax can be avoided by electing S corporation tax status with the Internal Revenue Service.|The chief drawback of a C corporation is the so-called "double taxation" potential. Profits are first taxed to the corporation, then, when distributed to shareholders in the form of dividends, they are taxed again. However, the threat of a double tax can sometimes be mitigated for following certain strategies.}

3. Formation and Ongoing Expenses.

{To form a corporation, articles of incorporation must be filed with the state and the applicable state filing fees paid. Many states impose ongoing fees on corporations, such as annual report and/or franchise tax fees. While these fees often are not very expensive for small businesses, formation of a corporation is more expensive than for a sole proprietorship or general partnership, both of which are not required to file formation documents with the state.|The incorporation process can be expensive and time-consuming. A number of documents must be prepared, including the new corporation's articles of incorporation and bylaws, and filing fees must be paid to your state's Secretary of State office.|For a Walkabout Solopreneur just starting out, and if cash flow is an issue, know that you’ll be paying for such costs as state filing fees, franchise tax, and other government fees.}

Considerations

{You could file all the necessary documents yourself. However, when you consider the time involved for filing, administering, and maintaining all the documents necessary to keep your business running legitimately... why would you?|A corporation that has not performed the necessary after-formation procedures will likely not be considered a separate entity by law, and could expose you to personal liability.}

{You can do it yourself or choose one of the companies below to do the paperwork for you - correctly, the first time.|Once your filing is complete, many services can provide you with complete personalized Corporate Bylaws (or Operating Agreement if an LLC), corporate documents and necessary meetings “ready for signature”.}

MyCompany Works -