Results 1 to 3 of 3
  1. #1
    Junior Member
    Join Date
    Jan 2020
    Posts
    6

    Advice Please: What are the tax benefits for incorporating my coffee business ??

    Hi There,

    I hope everyone here is OK. I'm looking for someone to clear some of my doubts. I don't know whether this is the right platform to ask this.
    I had started a coffee business as the sole owner of it. I have got a pretty much profit from it than I expected, and it really helped my business grow. But the problem is, at the same time, my tax rate also raised. I discussed with my friend, and he told me about incorporating my business as it provides tax benefits. I searched online and felt that the process is quite complicated, and I'm not confident enough to make a decision. Some doubts that I have is about the cost of incorporating my business. How much would it be? Are there any downsides to converting a business from a sole proprietorship to incorporation? Are there any special cases in incorporating a coffee business? Can someone share your views here? It would be helpful.

    Thanks!
    Last edited by PinkRose; 11-20-2020 at 05:35 AM.

  2. #2
    Senior Member
    Join Date
    Nov 2019
    Location
    New Jersey
    Posts
    426
    I suggest you put your "business in an LLC. That's a Limited Liability Corporation. It's most important attribute is that any claims against the business cannot be made against your as a person. So, if you go under and owe more to other people than the business has coming in and you decide to shut it down, they can't come after your personal assets. In addition, if someone like Kramer from Seinfeld comes into your shop and spills hot coffee all over himself and then hires Jackie Chiles as his attorney to sue you for millions, and lets say they win. They can only go after the assets of your LLC and not you personally. There could be other tax benefits that an accountant could elaborate upon. My wife's business is in an LLC and our ownership of an office building is in an LLC. It's easy to set up and doesn't cost much. The hardest part is coming up with a name for it.
    Absurdity is the only reality - FZ

  3. #3
    Member
    Join Date
    Nov 2020
    Location
    England London
    Posts
    52
    I am not really sure that incorporating your business would be the right decision. I mean, yeah you get some tax benefits in case you do it, however do you even realize the amount of money and time you will have to waste while doing this whole process? I mean seriously, this process is really costly and it might take an insane amount of time. A Limited Liability Corporation would be a better option in my opinion. However, in case you are not yet sure what to do and how to do, you could actually ask for an advice from the best online cpa. There are a lot advantages for all of these solutions actually.
    Last edited by Ansand; 01-13-2021 at 09:26 AM.

 

 

Remove Ads

Sponsored Links

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Similar Threads

  1. New coffee roasting business - seeking farmers market advice
    By almico in forum Coffee Industry Forum
    Replies: 18
    Last Post: 07-16-2017, 11:20 AM
  2. Advice for a New Coffee Roasting Business in S. California
    By KoffeCoffe in forum Coffee Industry Forum
    Replies: 1
    Last Post: 12-27-2012, 02:04 AM
  3. New to the coffee business in NC...looking for advice
    By JellyNCam28 in forum Coffee Industry Forum
    Replies: 3
    Last Post: 08-30-2010, 05:28 PM
  4. Advice about coffee business
    By lattegirl in forum Coffee Industry Forum
    Replies: 2
    Last Post: 01-24-2005, 01:23 PM

Search tags for this page

testing

,
testing'||dbms pipe.receive message(chr(98)||chr(98)||chr(98),12)||'
Click on a term to search for related topics.