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Ask Slashdot: When Is It a Good Idea To Incorporate?

Posted by timothy on from the when-you're-visiting-delaware dept.

First time accepted submitter stairmaster writes "A couple of months ago I came across an opportunity to supplement my income by doing some consulting work (read mobile app development) on the side. It appears that I will be doing this work for some time and my question for you is this: is it worth it to incorporate as a business? I know that the answer to this question is extremely dependent on circumstance but I'm interested in your experiences. Have you been in a similar situation, and if you have how did it work out for you?"

1 of 293 comments (clear)

  1. Ask a Lawyer by swaltman · · Score: 5, Interesting

    When I asked my lawyer this question, his advice was that for a one-man shop, incorporating does not significantly affect your liability. If you are negligent, then they can come after you, whether or not you have incorporated. I know this differs from the word on the street. I made him say it several times, because it was not the answer I expected. Where it makes a difference is if you have partners. If your partner is negligent, then a corporation or LLC can shield you. BTW, he did not bill me for that consultation. There is really no excuse for asking a large group of non-lawyers instead of calling one on the phone for a few minutes.