I know lots of you are thinking what is a P.A., why do I need it, and where do you get it.
1.)P.A. - Professional Association- This is one of several types if incorporation. I know, I know... who wants to do more paperwork in our business. But, the rewards greatly out way the effort you have to put in. LLC, PL and different tax elections within like the famous "S-Corporation" and C-Corporation." I use S-corp.(another blog topic)
Haven't you heard a friend or your yard man always saying "I'll just write this off as a business expense" and wondered how do the do that. Well, I'm not going to get into tax advising but I will tell you that through incorporation is the vehicle that gets you to write down town and O'yea... You can write off the trip there to.
2.)On top of using a P.A. to manage your expenses and maximise your "cost of doing business," You need to be thinking about protecting your self in todays litigious society. We are daily working with the largest investments of our clients lives and all you have is a little E&O insurance policy between a judges gavel and your personal assets. What were you thinking!! We all know how just a few misread words can change a transaction and our pockets. Has anyone else had to buy a new refrigerator for a closing to happen? Incorporation Can provide the separation needed to limit your professional liability to your company. No legal advise here as you still need to watch you P's & Q's. But by showing that there is a delineation of your company and you the employee. Remember, we are NOTemployees of our Brokers but rather, independent contractors. Lawyers like to see more exposed parties to attack when there is blood in the water.
3.)The hard way- ($280-$350) Do it your self like me. I wanted to know and understand the process and reasoning behind incorporating. So I took almost 7 months studying and filing the forms and consulting with a few different lawyer friends and my accountant.
The Easy way-($400-$800) Stop by your attorney's office, drop off a check, and come back next week to pick up your books. I recommend this to most as I had resources typically not available and was enthusiastic about learning this stuff.
And by the way, you can also get to say "I'll just write this off as a business expense" and mean it next time plus include the costs of incorporation in your business expanses.
Lee Forbes P.A. GulfsideLand.com
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