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    8 Replies Latest reply on Feb 4, 2008 7:15 PM by bradley

    questions about incorporating

    philip Newbie

      Hi everyone!

      I want to start an online buiness and want to structure it as c-corp.

       

      Now, I want to run it out from my condo (i checked the condo doc and it doesn't
      say/prohibit anything about running a business...i might need to check with the
      local townhall, too, just to make sure). In any case, does c-corp (or LLC) has any restriction
      regarding using home address as the business address? I am living in MA.

      My second question is, do i need an attorney or pay one of those business filing comp
      to do all the filing for me? Since I would be the only business owner.

      Any advices would be appreciated, thanks!

      Philip
        • Re: questions about incorporating
          CEO Space Scout
          Philip,

          Welcome to the forum.

          My first question is why do you want to incorporate as a C corp at this point?

          Then, I would ask you to tell me more about your business idea and your situation.

          Kathy
            • Re: questions about incorporating
              philip Newbie

              Kathy,

              I'd thought about starting as LLC, too.
              But at some point in the future I'd like to look for additional funding from outside investors, etc.
              I thought it may be a good idea to bite the bullet first.

              As for my situation, I have a full time job (software engineer) so I would be doing this as part-time until i have a clearer picture of where this is heading. Also since my wife is staying home taking of the kid, there are certain risk i cannot take at this point. But I'm pretty comfortable handing finance, paper work, etc.

               

              As for business idea, this is in the online educational space. I'm working on the business plan but have to admit that i haven't done enough marketing research. This is why i can run it out from my condo, there is no need for a warehouse for this type of business :-)

               


              Philip

                • Re: questions about incorporating
                  CEO Space Scout
                  Philip,

                  ok, getting investors is a whole other can of worms.

                  Really, given what you are doing, I would start as either a sole proprietor or an LLC.

                  And the other suggestion to get another address to use for your business is a good one.

                  I would not use a PO Box though, too obvious. Get one of those mail boxes that
                  are a street addresses.

                  Good luck.
                  • Re: questions about incorporating
                    LUCKIEST Guide
                    philip, Again good luck, You do know about SCORE. I am a SCORE Counselor and we at SCORE
                    help people going into business FREE of charge.
                    SCORE is a partner of to Bank of America and provides FREE business assistance with both
                    Business and Marketing Plan and lots more.
                    LUCKIEST
                • Re: questions about incorporating
                  LUCKIEST Guide
                  philip, welcome to this website. You want to start an online business and want to structure it as c-corp.
                  Great idea. No, a C-corp (or LLC) DOES NOT have any restriction
                  regarding using home address as the business address. You do not need a business location to step up a business.
                  Do you have a business name. YES then go on line to IRS.gov and register the business and get a Federal
                  I D Number.
                  Anybody going into business should have an accountant and an attorney, BUT it is not necessary.
                  Good luck, LUCKIEST
                  • Re: questions about incorporating
                    young man Newbie
                    Hello and welcome,

                    If you plan to run a home business/e-commerce it may not be a good idea to use your home address as your business address if your customers will be able to have access to it. You should use a PO box if your business does not have a physical location. What happens if an angry customer Knows where you live?
                    • Re: questions about incorporating
                      Lighthouse24 Ranger
                      I'd start as a Sole Proprietor because it's cheap and easy and you can do it yourself -- and you're not really doing business with the public yet anyway (just establishing a concept and name). When you are ready to launch and might start to have some liability concerns (or need investors), then you can incorporate. There are actually some other advantages in doing it that way (proprietor to c-corp) when the time comes. Best wishes.
                      • Re: questions about incorporating
                        bradley Newbie
                        I used legalzoom to register as a s-corp. it was fast to inpiut data, but the whole process took about 5 weeks to get everything and cost about $600 (deductable) They send you stock certificates, all the necessary documents ina binder, a seal, and a cd with document templates.The benefit of a s-corp is you get to deduct your business expenses from your personal income tax. Good option for startups and those that don;t expect to have many investors or foreign investors. I don't kmnow how this compares to LLC. Try the NOLO website. Their books are good.

                        I started a biotech company, and I'm running the grant writing process out the house. Anything related to running your business is deductable to some extent. your home expenses deduction is all home expenses times the fraction of your office area divided by the entire house square footage. Everything used to maintain the home is deductable. heat, power, internet, pest killer.