Re: sole proprietors, what do you call yourself

At Friday 3/9/01 09:07 AM, Doug Isenberg wrote:

>         No matter what you call yourself, though, as a sole proprietor, 
> you're exposing your personal assets if a claim is made against your 
> business.  Avoiding (or trying to avoid) that exposure is the primary 
> reason many people do not conduct business as a sole proprietor.

I'm not an attorney but I have done business as a sole proprietor and as a 
subchapter S corporation. Some time ago an attorney advised me that there 
have been cases where 'the corporate shield' was successfully challenged in 
court on the basis that the corporation was really only the one or two 
people that owned it.

My primary reason for being incorporated is the prestige from being able to say

Face 2 Interface Inc.

vs.

Marty Landman, dba Face 2 Interface

Now that I have some understanding of the tax differences between filing a 
1040/schedule C for a sole proprietorship vs. filing a Form 1120S -> 
1040/schedule E for an S corp, I believe the tax advantages of being 
incorporated are minor.... and probably not enough to justify the extra 
cost of an accountant, or hassle if you're doing your own.

However, I think that the prestige factor is not to be underestimated. 
Running your business as a corporation rather than sole prop. demonstrates 
to anyone that cares that you're willing and able to bear the brunt of the 
extra expense and bookkeeping effort.

Just don't think that anyone's fooled by titles. IMHO, anyone that cares 
enough to consider doing business with you will know how big or small you 
are. Depending on the prospective client, they may be in the same shoes.

Just my two cents, I hope.

Marty
http://face2interface.com

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