Tuesday, May 17, 2011

Did you purchase any extra material about taxes and what to classify your business as?

Question submitted by Linda R.: We are extremely new, we started mid March 2011, attended a Boot Camp where a Paid Lawyer came to talk to us about Taxes and what our business should be classified as ie., sCorp., Corp. DBA, etc. When we realized they were just trying to sell us something we were a little upset. The reason for the upset was because we were told the Boot Camp was for only the Platinum buyers and we would be getting more info on SEO and Tax info. The older gentleman sitting next to me even asked "Will there be anymore things he needs buy at the Boot Camp?". The reply he got was" No". So my question is did you purchase any extra material about taxes and what to classify your business as? Of course they have me worried now that we may be sued…

Answer: No, I did not purchase the extra tax information. It wasn't even offered when I purchased in Nov 2004. I have attended the same boot camp and I do find value in the information and the offer. With regards to anything extra, I did not buy because I could not afford it. That includes the extra help that was being offered but required extra money. This country is very sue happy so there is always a risk of being sued for something. With that in mind, it is always best to protect your assets. Separating business assets from personal assets by incorporating is the best thing to do. Generally, when you sell someone else's product, the customer goes after the manufacturer, not the seller. If I got sick from eating a bag of chips that I bought at Walmart, I'm not going to sue Walmart, I'm going to sue the company who brands the chips. If you look at it like that, then the risk of being sued is probably minimal. What I do know is that there is an appropriate time to incorporate. There are tax benefits to waiting.

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