Anyway, what do y'all think about this? Does every little business need to
incorporate, or no?
10,000 Texas-sized thanks,
--Tock
Another option may be to form a Limited Liability
Company (LLC). There are fewer reporting
requirements, but the "members" are still protected
from personal liability.
Only YOU can decide what is best for you.
What you may want to do is to ask your
attorney to comp out for your the costs for
each - from formation fees to annual
reporting fees to annual tax differentials -
as well as what information is required
in YOUR state for reporting.
Each state has its own requirements,
advantages and disadvantages for each.
HTH.
Purrrz,
Sue
I don't see the advantage as far as reduced litigation. No one's going to
be fooled. Your corporation is not going to shield you from any
liability.
> 10,000 Texas-sized thanks,
> --Tock
--
Lance Lamboy
"Go F*ck Yourself" ~ Dick Cheney
As for getting sued, the directors of the corporation (i.e. YOU) would also
get personally sued, so the liability protection aspect isn't that relevant
anynmore. You should still get a good amount of liability insurance.
Thanks,
Mike
--
To reply via email remove the X's from my email address:
aXeXn...@gwis.com
<to...@sbcglobal.net> wrote in message
news:S6xWc.4827$jl1....@newssvr23.news.prodigy.com...
Quite to the contrary, if the case has merit, most attorneys will take
it on a contingency basis.
Legally, it NEVER hurts to protect yourself. *If* someone were to be
seriously injured or died as a result of something that happened in
your shop, regardless of who his barber was - chances are he would sue
YOU right along with the other person. They are trying to prove
NEGLIGENCE and they will try to prove that YOU were NEGLIGENT in
hiring this person in the first place.
Don't think that such things are limited to slip and fall. What if a
kid gets his fingers stuck in a hydraulic chair and chops a couple
off? What if a homicidal maniac starts stabbing people with a pair of
shears? What if some pissed off wife comes in and throws Barbarcide
in her cheating husband's face? What if some stupid employee tries to
clean the bathroom with a combination of chlorine bleach and ammonia
(deadly)? There are so many possibilities! All of which COULD prove
liability and negligence on your part.
Just FYI, you don't need an attorney to incorporate (at $600) plus.
Since you are not going to offer shares, you can do the paperwork
yourself very easily (fill in the blanks) kind of thing. I'm sure
there are oodles of resources on the internet that would provide you
with forms for less than $100. See what nolo.com has to offer. Check
around.
I think you will be glad you did.
Em
The first half of our lives is ruined by our parents,
and the second half by our children.
--- Clarence Darrow
(make that YOUR children).
>My lawyer is asking me if I want to incorporate my little barbershop. He's
>in favor of it, primarily because he's gonna get $1000 if I say yes.
>I understand that if I incorporate, any business liability falls on the
>corporation.
My business is incorporated and it has far less potential for liability issues
than yours. Having a corporation to shield you from liability is only part of
the deal. You are in Texas, so you probably can't set up your own corp
legally, but I set up mine in Florida for a couple hundred bucks with proper
supervision. The key to shielding yourself is having an accountant that
understands the tax codes and ramifications and keep your accounts straight,
and an attorney that can also help properly shield any personal assets. For
example, if Texas has homestead laws, he may suggest that you might want to
become a homeowner to protect your assets.
Understand that all of the major tax advantages and perks in this country are
not driven by or collected by individuals, but by corporations. To tap in to
them, you have to have a corporation. All of your business expenses are
shouldered by the corporation, and your personal income is only the excess that
you draw out, allowing you to deduct expenses that you might not otherwise be
able to deduct with a proprietorship.
Also understand that you must follow the rules exactly, with corporate meetings
(even if it is just yourself) every year, proper signing of documents, filing
corporate reports (read pay a tax each year just for having a corporation), and
keeping accounts separate. The ongoing paperwork isn't really that hard, and
the benefits are amazing.
IF you dot your i's and cross your t's, and follow your professionals' advice,
anyone trying to sue you personally outside the corporation won't have a
snowball's chance of collecting. Just having your attorney fielding any
disputes will short circuit most people from trying.
There is _no way_ that I would have a proprietorship of a business that had the
public walking inside. IMO, you would be foolish to not incorporate even if
the cost was $10,000.
- the above is just conversation and should not be construed as providing legal
advice to a resident of the great state of Texas. Residents there should
consult with a member of the Texas bar for competent legal advice.
That sounds tempting, but my the company I worked 22 years for, and retired
from, pays for my medical and dental insurance . . .
Thanks,
-Tock
That's a gross oversimplification, but more accurate than it sounds.
If you provide services through your corporation, the corporation
doesn't shield you from liability for your own negligence (though
you're right, you're not in the sort of trade that is a favored target
of the litigious). Who the corporation does protect is your investors:
they cannot lose more than their stake in the corp.
If you don't need to do anything like raise funds by selling stock, an
LLC typically is less trouble to form and operate than a corporation.
Depending on state law, liability protection for your investors may be
better or not quite as good. Your lawyer should be knowledgeable about
the details.
Your best protection, no matter what your form of business, is still
adequate liability insurance. This is especially so when, as a
barbershop does, you hold yourself open to the public in general.
--
Chris Green
Just get liability insurance and forget about it.
Plenty of doctors have are not incorporated. Apparently, incorporation
doesn't shield them from malpractice anyway.
Rules of incorporation vary from one state to the next. You should talk
to your local chamber of commerce and/or small business agency.
Some don't. My doctor has protected his basic assets and practices without it.
Well Harry, your advice has been golden in the past, so I told my lawyer to
set me up. The mighty "Tock Corporation" with 1000 shares (the lawyer
offered to create 1,000,000 shares but I didn't want to keep track of that
many), will soon be descending upon Texas commerce like manna from Heaven,
dedicated to Lady Bird Johnson's quest of "Beautifying America."
I figure there are probably extra tax benefits to be gotten, like being able
to write off a "business" trip for my annual meeting, plus whatever extra
liability advantages there are to be had, so . . .
A bit more paperwork, but c'est la vie.
Thanks for y'all's input on this . . .
--Tock
Yep. He is aware that I have a small business and a limited amount to spend on
insurance, and he and I both agree that the high cost of malpractice insurance
is a problem, so we started talking. No big deal. My brother is fishing
buddies with the doctor I used to go to in Vermont. Doctors have lives too.
Congrats, Tock. Keep the shares closely held, and get your business cards and
letterhead made up. You probably need to set up a second trusted person in an
official role so that your corporate bank account can be accessed if you are
incapacitated. In your case, a parent would be first choice. They'll need to
sign the bank signature cards as well.
If your cutters pay rent to you, have them do it to an accumulation account of
the corporation that also writes the outside checks. Draw any excess into a
second account that isn't used except to cut checks back to the business or
yourself (you want it as invisible as possible to vendors and your renters).
If the cutters are employed by you, consider using a payroll company (hired by
the corporation) at least to start off. You'll need to get a feel for the flow
of the paperwork, and if your employees are hired as employees of the payroll
company rather than of your company it adds more protection during your
start-up, when mistakes are commonly made and bureaucrats like to nose around.
If you haven't already done so, now is the time to interview tax accountants
and select one. Even if you think you can handle all the paperwork involved
and do your own taxes, don't skip this step. A good accountant will know stuff
you wouldn't dream about, and state auditors will not be as terrifying if you
are audited. A couple of years into it, if you still want to drop the
accountant, you will be in a much better position to do so.
Use something common like Quickbooks or Peachtree to feed your accountant the
data he needs. People working in the shop should use a cash register or
computer program with department codes to provide the receipts needed to
satisfy the sales tax people and give you the info you need.
For letting abortions live. Wonder if your dad appreciates your doctor.
Well . . . guess I'll have to see what else is available . . . grunt grunt
grunt . . .
Thanks for the advice, Harry; I've got it printed out for future reference .
. .
-Tock
Mike
--
To reply via email remove the X's from my email address:
aXeXn...@gwis.com
<to...@sbcglobal.net> wrote in message
news:baOWc.12890$142....@newssvr22.news.prodigy.com...
>So, I'm SOL right now, and none too happy.
Bummer. Maybe that means there is a better building out there
somewhere waiting for you.
Dennis (evil)
--
The honest man is the one who realizes that he cannot
consume more, in his lifetime, than he produces.
Well, just took a few laps around the lake on my penny-farthing, and between
that and a peanut butter and jelly sandwich, I'm in better spirits. On my
second lap I remembered I left another good site sorta in limbo; gonna check
that one out.
As they say in the supermarket produce section, something will "turnip."
But geez, I missed this one by one day. I'm getting closer, though . . .
Thanks, y'all . . .
--Tock
That is wrong and dangerous advice.
An S corporation cannot use IRC 106 to pay tax-free insurance, MSA
contributions, or medical expenses of an owner. IRC 1394 deems S
corporation owners (of 2% or more of the company's stock) to be
partners, not employees, for this purpose and thus ineligible for IRC
106. It will create a taxable payment to the owner, not a tax-free
fringe benefit.
S corporation owners can still use the self-employed medical insurance
adjustment to income.
A C corporation can pay that kind of fringe benefit, but an S
corporation cannot.
--
Chris Green
That makes a nice relationship! It took awhile for me to find a doctor
that wasn't too busy to chit chat a bit and take an interest in other
aspects of my life. Sometimes doctors are so busy they forget that the
patient is a sum of more than the symptoms, yet those other aspects can
greatly affect the patient's health and well being.
Mine had a right old rant about how much worse the computer
system was than the previous paperwork approach. And at the
end of that thanked me for listening to his rant |-)
>Oy vey . . . I got the lease reviewed, set the mechanics of getting the
>corporation started, and while summarizing a list of things to change in the
>lease, the landlord called me and said someone else signed a lease already
>on the entire building (I was gonna take only about 1/4 of the space).
>So, I'm SOL right now, and none too happy.
I suggest you talk to the new lessee. Maybe, he does not want
the entire building but had to settle for that and would sublet to you
the space you want. Or maybe, he knows of other space available, such
as his previous space or space he checked out while doing his search.
[snip]
Sincerely,
Gene Wirchenko
Computerese Irregular Verb Conjugation:
I have preferences.
You have biases.
He/She has prejudices.
I guess it's back to the drawing board. Good luck hunting!
-- Jane
How about starting a mobile haircutting service? A chair in a van would
probably be a bit claustrophobic, but couldn't you assemble a kit and
offer haircuts (at premium prices, of course) to busy executives in
their offices? At my last job in a 6-story office building a number of
dry cleaners and shoe repairpersons offered free pickup and delivery at
people's offices and seemed to make quite a good thing of it.
--
Cheers,
Bev
+++++++++++++++++++++++++++++++++++++
To define recursion, we must first define recursion.
>to...@sbcglobal.net wrote:
>>
>> Oy vey . . . I got the lease reviewed, set the mechanics of getting the
>> corporation started, and while summarizing a list of things to change in the
>> lease, the landlord called me and said someone else signed a lease already
>> on the entire building (I was gonna take only about 1/4 of the space).
>> So, I'm SOL right now, and none too happy.
>> He who hesitates . . . at least I learned a thing or two about this mess . .
>
>How about starting a mobile haircutting service? A chair in a van would
>probably be a bit claustrophobic, but couldn't you assemble a kit and
>offer haircuts (at premium prices, of course) to busy executives in
>their offices? At my last job in a 6-story office building a number of
>dry cleaners and shoe repairpersons offered free pickup and delivery at
>people's offices and seemed to make quite a good thing of it.
Hey, if Dr. Death can do it in a van...
He could get a classic 1959 Cadillac instead, use it, and become the "Barber of
De Ville."
Since this is Texas, his ad campaign would be a picture of him in a mean pose
with trimmers in holsters strapped to each leg, and a decent stetson, with the
caption "Have Flowbee, Will Travel."
...or he could do like a woman has done here, and specialize in de-lousing
kids. He even has the perfect moniker waiting for him- "Tick Tock"
If he specialized in hair restoration for grandfathers, his studio could be
named "Hair Apparent."
As goofy as it sounds, that really ain't a bad idea...
---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.744 / Virus Database: 496 - Release Date: 8/24/2004
Cadillac ambulance or hearse. More room. Nice painting of his
high-wheeler on the side.
> Since this is Texas, his ad campaign would be a picture of him in a mean pose
> with trimmers in holsters strapped to each leg, and a decent stetson, with the
> caption "Have Flowbee, Will Travel."
Not a Flowbee, Blowbees are for amateurs. What was that Warren Beatty
movie where he was a hairdresser on a motorcycle? "Shampoo".
<http://www.imdb.com/title/tt0073692/> Ought to be a lot of showmanship
hints there.
Q: What was Paladin's first name?
A: Wire.
> ...or he could do like a woman has done here, and specialize in de-lousing
> kids. He even has the perfect moniker waiting for him- "Tick Tock"
Tacky.
> If he specialized in hair restoration for grandfathers, his studio could be
> named "Hair Apparent."
--
Cheers,
Bev
=======================================================================
"Lord, grant me the serenity to accept the things that I cannot change,
the courage to change the things I can, and the wisdom to hide the
bodies of the people who pissed me off."
There's a few people who do that here in Texas, but it's illegal. The state
rules require barbers and cosmetologists to wash their hands with hot soap
and water before every haircut, and that pretty much requires a storefront.
Not too many barbers or cosmetologists bother to wash their hands between
customers (a lot of shops don't even have sinks), but that's a problem for
the barber inspectors to resolve. Me, I'm wanting to set up a quality
(defined as "conforming to requirements," both state and customer), so I'll
just do thing the right way. Since the state doesn't enforce the state
sanitation rules very well, I figure if I take the time to run a clean shop
and mention that fact to customers, that, in and of itself, should be an
additional competitive advantage that'll keep folks coming back . . .
My lawyer referred me to a commercial real estate guy, and he's doing some
looking around for me. Should hear something from him tomorrow (friday am)
or monday. So, I suppose something will turn up . . . sooner or later . .
.
Thanks,
-Tock
What, Texas office buildings don't have restrooms? Ewww.
> Not too many barbers or cosmetologists bother to wash their hands between
> customers (a lot of shops don't even have sinks), but that's a problem for
> the barber inspectors to resolve. Me, I'm wanting to set up a quality
> (defined as "conforming to requirements," both state and customer), so I'll
> just do thing the right way. Since the state doesn't enforce the state
> sanitation rules very well, I figure if I take the time to run a clean shop
> and mention that fact to customers, that, in and of itself, should be an
> additional competitive advantage that'll keep folks coming back . . .
I don't think I'd like to live in a place where "clean hands" is a novel
concept :-(
> My lawyer referred me to a commercial real estate guy, and he's doing some
> looking around for me. Should hear something from him tomorrow (friday am)
> or monday. So, I suppose something will turn up . . . sooner or later . .
It's horrid getting your hopes up, planning the color scheme, etc. and
then getting the rug pulled out from under you, and I don't think it's
possible to make generic plans with no reference to an actual location.
Bummer, but as you say, sooner or later...
--
Cheers,
Bev
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
"Once you've provoked a few people into publicly swearing they are going
to hunt you down and kill you, the thrill wears off." -Elric of Imrryr
Versailles didn't. Doctors use alcohol wipes...
Nick
>to...@sbcglobal.net wrote:
>>
>> Oy vey . . . I got the lease reviewed, set the mechanics of getting the
>> corporation started, and while summarizing a list of things to change in the
>> lease, the landlord called me and said someone else signed a lease already
>> on the entire building (I was gonna take only about 1/4 of the space).
>> So, I'm SOL right now, and none too happy.
>> He who hesitates . . . at least I learned a thing or two about this mess . .
>
>How about starting a mobile haircutting service? A chair in a van would
>probably be a bit claustrophobic, but couldn't you assemble a kit and
>offer haircuts (at premium prices, of course) to busy executives in
>their offices?
So skip the van and get a mobile pair of scissors and tablecloth
......
Oooops, I forgot the mobile bowl.
Joel
Well, the state issues permits for barbershops, and they periodically
inspect 'em for sanitation. If your shop is always on the road, they can't
really do that. They could make appointments to meet somewhere I suppose,
but they don't. Um, also, ya really need to have sanitation provisions
arranged, like how to dispose of hair that falls onto the carpet
(barbershops can't have carpet around the chairs), and then ya gotta
sanitize the clippers and scissors and etc between clients . . . so you
really need lots of water and a permanant facility to do things right.
Also, unless you charge exhorbitant rates, it wouldn't be all that
profitable to travel to clients, 'cause you'd be working alone, where if you
have a shop with multiple chairs, you can rent out your extra chairs and
make $$$ that way.
>
> > Not too many barbers or cosmetologists bother to wash their hands
between
> > customers (a lot of shops don't even have sinks), but that's a problem
for
> > the barber inspectors to resolve. Me, I'm wanting to set up a
quality
> > (defined as "conforming to requirements," both state and customer), so
I'll
> > just do thing the right way. Since the state doesn't enforce the state
> > sanitation rules very well, I figure if I take the time to run a clean
shop
> > and mention that fact to customers, that, in and of itself, should be an
> > additional competitive advantage that'll keep folks coming back . . .
>
> I don't think I'd like to live in a place where "clean hands" is a novel
> concept :-(
Ya, well, this is Texas . . .
I've seen what happens when haircutters don't follow sanitary practices, and
there's really no excuse for it. But, if my customers know that I do, and
they see that others don't, well, so much the better for me. The State
should really enforce their rules, but they don't (unless you piss 'em off).
But again, this is Texas . . .
> > My lawyer referred me to a commercial real estate guy, and he's doing
some
> > looking around for me. Should hear something from him tomorrow (friday
am)
> > or monday. So, I suppose something will turn up . . . sooner or later
. .
>
> It's horrid getting your hopes up, planning the color scheme, etc. and
> then getting the rug pulled out from under you, and I don't think it's
> possible to make generic plans with no reference to an actual location.
> Bummer, but as you say, sooner or later...
Ya, there's things I can't do until I get an address, like get the
corporation set up, or set up a bank account, or start the marketing plan.
But like you say, I'll find some place . . . sooner or later . . . if not,
I'll do something else, like start a trans-oceanic zeppelin line, or a
publishing house for illiterates, or even market a line of clothing made out
of recycled plastic supermarket bags. And if all that falls through, I'll
run for public office. Ya, Bush couldn't run a business without running it
into the ground, so there'd be hope for me . . . not for y'all, but for me .
. .
lol . . .
--Tock
Yes, but they had pissboys. Didn't you see Mel Brooks' History of the
World? Anyway, they have one now. Maybe more.
> Doctors use alcohol wipes...
OK, so where do Texas doctors pee?
--
Cheers,
Bev
+++++++++++++++++++++++++++++++++++++++++++++++++
"No one's life, liberty or property is safe while
the legislature is in session." -- Mark Twain
>> >What, Texas office buildings don't have restrooms? Ewww.
>>
>> Versailles didn't.
>
>Yes, but they had pissboys. Didn't you see Mel Brooks' History of the World?
No... What's a pissboy?
>Anyway, they have one now. Maybe more.
Earlier visitors pooped in the hallways, which made
those hand-carried litter chairs popular indoors.
>> Doctors use alcohol wipes...
>
>OK, so where do Texas doctors pee?
Dunno. Why do Texans think firemen are wise?
Nick
Rent the movie. I don't want to spoil it for you.
> >Anyway, they have one now. Maybe more.
Addendum: with really crummy toilet paper. You'd think the stuff was
made of gold leaf. Europeans need to learn that attending to certain
necessary bodily functions doesn't have to be painful.
> Earlier visitors pooped in the hallways, which made
> those hand-carried litter chairs popular indoors.
>
> >> Doctors use alcohol wipes...
> >
> >OK, so where do Texas doctors pee?
>
> Dunno. Why do Texans think firemen are wise?
Is that the setup or the punchline?
--
Cheers,
Bev
oooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooooo
"I read somewhere that 77 per cent of all the mentally ill live in
poverty. Actually, I'm more intrigued by the 23 per cent who are
apparently doing quite well for themselves." -- Emo Philips