Corporate structure and incorporation state. DE?

Discussion in 'Growing and Managing a Business' started by fastline, Feb 17, 2012.

  1. fastline

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    Feb 17, 2012
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    I will try to explain my business in hopes of getting some ideas and thoughts on both an ideal tax structure and if I should consider incorporation in DE.

    My business is a small, garage based business with approx 100K in assets. I CNC manufacture products that retail online as well as sub tier airplane parts. Been doing this for 6 yrs. I have never formally formed a business with my state and just use my SSN for any tax related 1099s. I have a couple other business ventures I want to consider. One being a farm based business and one is more manufactured products for another industry. I know it is time to incorporate solely to provide some level of liability protection. I do NOT want to get product insurance, just better separate my business from personal even though operations will not change much.

    I do have an accountant but he is not familiar with the advantages/disadvantages of a Delaware based corp or how to set it up, or even if there is really any advantage. I am actually in KS. The decision also has to be made on the structure. It was looking that LLC may not really be for me. Lots of my assets are used both personally and for business in which I am not real sure I want to induct them formally in the business because of liability losses. Can't take what is not there. However, without much for write offs, I might really suffer on taxes. I need to be able to buy for the business but adding up assets in the business scares me.

    I am getting ready to build a large building where I will also have living quarters. The building will be personally owned but I understand the best way to handle this is to "lease or rent" space to my company on paper. This would separate business from personal.

    All in all, I am looking for tax info on how to keep uncle sam from taking everything from me, as well as liability protection. Additionally, with these new off-shoot businesses that are coming, I want isolation or separation in liability but do not want to hassle with multiple corporations. I understood that DE allowed multiple businesses under one umbrella. I just want to make sure if there is a suit on my farming side, the only thing on that side is tractors and they cannot get to my CNC machines on the manufacturing stuff.

    Any help and info would be great!


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