Some comments...
#1 - Subchapter S is a form you file with the IRS. This prevents the kind of double-taxation referred to by gillbates. Piece of cake (relatively) to avoid. True you can't seize the cash but you could decide to make yourself a low-interest loan right before the tax year ends. Corporations have more paperwork but that's to facilitate the large number of loopholes and tax advantages provided to corps vs. individuals.
#2 - No comments... why would you want 86%?
#3 A - depending on where you work employees may or may not be more difficult to get rid of. South Carolina is a 'right-to-work' state which means you can quit at any time for any reason with no notice but also allows your employer to terminate you at any time for any reason with no notice.
#3 B - Liability insurance is a nice thing to have and part of the cost of doing business. As a corporation, however, you have created an entirely separate legal entity which can be sued, etc, for damages but protects your personal assets (car, house, accounts) behind a corporate veil. The veil can be pierced but that's why you're paying a lawyer to make sure it's set up right.
Corporation to corporation. The sooner you start treating yourself like a company, the better... I would imagine this option will open up opportunities in the future that may not be available to you as an individual contractor and certainly not as an employee.
So, yes lawyers and accountants will be a must but again, the earlier you start managing your affairs correctly, the more money you should have to show for it in the next 10 years.
The guy was right that posted earlier about Sub Chapter S versus a Chapter C corporation... only one level of taxation. Not too mention that you can be a contractor yourself to your own corporation and manage to write off much more than just your equipment for use.
I don't know where you live but here in South Carolina it's approximately $200 to get all the paperwork and such with the state and such set up to form a corporation plus the bottom line fee from an attorney is typically in the $600 range for a corporate setup as simple as what you suggest. It's worth the investment.
I've had this same thought, even very recently when I purchased a 256mb DIMM for my laptop for $161.00. I can remember quoting people 256mb sticks of RAM in 1995 for desktops for about $2000.00.
The RAM market in the US for a long time has behaved like a commodity, with prices rising and falling with news of disaster or delay anywhere in it's fragile supply chain process.
Two other examples besides RAM are hard drives and network equipment: I mean, everything's switched and you can get an external 80g firewire drive (5400 RPM granted) for under $400. That's a TB for under $5000. I never quoted anything over a 2gb RAID in '95, which, btw, was about $5000.00, cost.
Let's also break it down to the base unit... cost per megabyte, cost per port (10/100/1000 switched or not) including the NIC in the client.
How much longer is this technology game going to continue? How does the impact of new technology have on pricing? How long before there's a processor, RAM, and NIC in EVERYthing? What if there's already a significant shift that has begun that this historical clearinghouse might shed some light on?
my2
What in the world are they smoking up in this country's NW? Its been days (at least it feels like it) since the polls have closed and CBSNews is reporting that just 85% of the precinct results are in for that state.
I do realize it doesnt make a hill of beans difference (unlike 19000 tossed votes in FL) in this election, but still.
Florida's race is so close that FL law requires a recount AND there are still over 5000 votes left to be counted. The difference is less than 2000...
Yaaaaaaawn.
I havent had any problems with any news sites, other than the ridiculous projections 'seesawing;'
What will be interesting is the kind of post-election reaction that will come from such a close race... especially if there really is a huge jump in participation, as well, this year.
Doesnt a tie SCREAM Choose and Lose? (CC's DS InDecision 2000 was great)
Here in Bush territory (SC)...
580k Bush, 440k Gore
85% reporting...
I hope Bush loses.
I have this device, see, called a TV... I'm having no problems with cache, etc... ALL of the websites except for CNN I've been to are BEHIND CBS's and Mr. Rather's coverage...
I expect however, that in 4 or 8 years, the Internet will trade places with the live TV broadcasts in terms of speed and timely delivery.
I, unfortunately, live in a red state.
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Some comments...
#1 - Subchapter S is a form you file with the IRS. This prevents the kind of double-taxation referred to by gillbates. Piece of cake (relatively) to avoid. True you can't seize the cash but you could decide to make yourself a low-interest loan right before the tax year ends. Corporations have more paperwork but that's to facilitate the large number of loopholes and tax advantages provided to corps vs. individuals.
#2 - No comments... why would you want 86%?
#3 A - depending on where you work employees may or may not be more difficult to get rid of. South Carolina is a 'right-to-work' state which means you can quit at any time for any reason with no notice but also allows your employer to terminate you at any time for any reason with no notice.
#3 B - Liability insurance is a nice thing to have and part of the cost of doing business. As a corporation, however, you have created an entirely separate legal entity which can be sued, etc, for damages but protects your personal assets (car, house, accounts) behind a corporate veil. The veil can be pierced but that's why you're paying a lawyer to make sure it's set up right.
Good Luck!
Corporation to corporation. The sooner you start treating yourself like a company, the better... I would imagine this option will open up opportunities in the future that may not be available to you as an individual contractor and certainly not as an employee.
So, yes lawyers and accountants will be a must but again, the earlier you start managing your affairs correctly, the more money you should have to show for it in the next 10 years.
The guy was right that posted earlier about Sub Chapter S versus a Chapter C corporation... only one level of taxation. Not too mention that you can be a contractor yourself to your own corporation and manage to write off much more than just your equipment for use.
I don't know where you live but here in South Carolina it's approximately $200 to get all the paperwork and such with the state and such set up to form a corporation plus the bottom line fee from an attorney is typically in the $600 range for a corporate setup as simple as what you suggest. It's worth the investment.
Whatever you do, don't go the W2 route.
Good luck and let us know how it goes.
The RAM market in the US for a long time has behaved like a commodity, with prices rising and falling with news of disaster or delay anywhere in it's fragile supply chain process.
Two other examples besides RAM are hard drives and network equipment: I mean, everything's switched and you can get an external 80g firewire drive (5400 RPM granted) for under $400. That's a TB for under $5000. I never quoted anything over a 2gb RAID in '95, which, btw, was about $5000.00, cost.
Let's also break it down to the base unit... cost per megabyte, cost per port (10/100/1000 switched or not) including the NIC in the client.
How much longer is this technology game going to continue? How does the impact of new technology have on pricing? How long before there's a processor, RAM, and NIC in EVERYthing? What if there's already a significant shift that has begun that this historical clearinghouse might shed some light on? my2
What in the world are they smoking up in this country's NW? Its been days (at least it feels like it) since the polls have closed and CBSNews is reporting that just 85% of the precinct results are in for that state.
I do realize it doesnt make a hill of beans difference (unlike 19000 tossed votes in FL) in this election, but still.
Just a few thoughts.... how many people have giant 42"+ tvs, completely incapable of receiving the HDTV signal...
PCI Card: $400.00
80GB Firewire Drive: $380
(http://www.transintl.com)
CPU: $400.00
$1280 conversion kit for any TV....
BTW, to view the HDTV signal I dont think it'd be necessary to record it... so there wouldnt be any additional expense over the card.
Further note on the cheap drives... as soon as I save up $5000, I'm buying a firewire terabyte and attaching it to my iBook. Just cuz.
Florida's race is so close that FL law requires a recount AND there are still over 5000 votes left to be counted. The difference is less than 2000...
Yaaaaaaawn.
I havent had any problems with any news sites, other than the ridiculous projections 'seesawing;' What will be interesting is the kind of post-election reaction that will come from such a close race... especially if there really is a huge jump in participation, as well, this year. Doesnt a tie SCREAM Choose and Lose? (CC's DS InDecision 2000 was great) Here in Bush territory (SC)... 580k Bush, 440k Gore 85% reporting... I hope Bush loses.
This place a whopping 54 electoral votes in the VP's column...
I have this device, see, called a TV... I'm having no problems with cache, etc... ALL of the websites except for CNN I've been to are BEHIND CBS's and Mr. Rather's coverage... I expect however, that in 4 or 8 years, the Internet will trade places with the live TV broadcasts in terms of speed and timely delivery. I, unfortunately, live in a red state.