Incorporating questions

valryte · Post by **valryte** » February 28, 2004, 5:28 pm

Before I shell out money to a lawyer, I was wondering what recommendations some of you had who have done this. Basically I wanted to create a company for consulting and selling my software. I somewhat understand the differences between them as far as liabilities go, but what about filing and tax requirements. Obviosuly while I'm making money I don't care, but I do know there will be times what I won't be doing shit. I want to know what hassle I'm looking forward to for the sake of being incorporated. I work full time for a company, so work I might do on my own won't be much. But I do want to have my company name and domain protected as well as possible future products. Which brings about the questions of trademarks. I saw that at http://www.uspto.gov you can simply register a trademark for like $670 (software). Is it really that simple? No need for a lawyer for trademarks?

Deward · Post by **Deward** » March 1, 2004, 12:02 pm

I don't know much about trademarks but for a small company with less than two owners I would go with the LLC (limited liability corporation) instead of a corporation. Corporations are a pain in the ass and in most states require you to file taxes quarterly. LLC limits your liability and you only have to declare taxes once a year. Not all states have LLC laws though so you will have to look it up. In wisconsin I set up a LLC for $125 if I remember right and a single piece of paperwork. I didn't need a lawyer at all.

archeiron · Post by **archeiron** » March 1, 2004, 12:07 pm

Deward wrote:I don't know much about trademarks but for a small company with less than two owners I would go with the LLC (limited liability corporation) instead of a corporation. Corporations are a pain in the ass and in most states require you to file taxes quarterly. LLC limits your liability and you only have to declare taxes once a year. Not all states have LLC laws though so you will have to look it up. In wisconsin I set up a LLC for $125 if I remember right and a single piece of paperwork. I didn't need a lawyer at all.

I have personal experience with this (I have formed an LLC with a group of partners when we started a software company), and I would have to agree with Deward.

Voronwë · Post by **Voronwë** » March 1, 2004, 12:29 pm

Understand the legal benefits of Sole Proprietorships as well.

Lynks · Post by **Lynks** » March 1, 2004, 7:21 pm

Voronwë wrote:Understand the legal benefits of Sole Proprietorships as well.

I was going to recommend this myself. If you are the only owner of your company, and plan on doing it part-time, corporations aren't for you.