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Infolawyer
Infolawyer, Attorney
Category: Business Law
Satisfied Customers: 1767
Experience:  Experienced lawyer
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I own a sole proprietorship located in California. The business

Customer Question

I own a sole proprietorship located in California. The business made $105,000 in 2011 and should make about $135,000 in 2012. I believe I could save money by incorporating, but am not sure. Questions:

1) Does it make sense to incorporate?
2) If so, am I better off incorporating in Nevada or California?

David
Submitted: 5 years ago.
Category: Business Law
Expert:  MShore Law replied 5 years ago.
Thank you for the post, I am happy to assist you by answering your questions. In what ways do you believe you would save money by incorporating? I ask because I want to get a better understanding of your situation.
Customer: replied 5 years ago.
I could pay myself a reasonable salary and take the rest as a distribution which would reduce my social security taxes.
Expert:  MShore Law replied 5 years ago.
Thank you, I will opt out in favor of a Tax expert.
Customer: replied 5 years ago.
Thanks anyway.
Expert:  MShore Law replied 5 years ago.
Not a problem, thank you for using JA, I just did not realize you were seeking tax advice.