Friday, June 24, 2011

Start your company today

There are several advantages incorporating your company. It will be the channel to express yourself in the area of your interest. You can be your Boss. Or even better you can train and place others. Or save some taxes while doing nothing.The options are unlimited and i am going to state a few here. Although you can start a company while on a VISA there are several impeding clauses. Check the following discussion forum thread for more. I suggest you wait until you get your EAD.

It’s your product and you own it

If you have that one idea which will change this world around then why sell it to those already rich corporations. Start your company and be the sole proprietor of your creativity. You can do this while still working for another company.

Be Your Employer (5 star)

I find it funny (ironic) the way companies work here. The concept of vendors, sub vendors and consultancies through which your dollars roll before they fill your valet is bureaucratically corrupt. The sooner you start working for yourself the sooner you are free from these parasites that control you. In most cases the client you work for might want you to go through their preferred vendor .I suggest you work with that vendor on a corp to corp basis instead of joining them as an employee (w-2). Remember even if you make an extra dollar an hour that will be at least 160 dollars a month and 1920 an year. You will have more control on how your run your payroll and taxes (Per Diem? :). Running your payroll with all the online tools available today is no big deal. You can split the income in to your salary and profits and avoid double taxation. Unlike the payroll taxes you not be paying the Medicare and social security taxes on your corporate profits.

None of the above

Even if you don’t employee anyone and you work for someone else, you should still start your company for the following reasons.
  1. If you are paying a mortgage on your home, you can use it as your office and write off some taxes by reporting losses on your corporation.
  2. Your internet and home phone bills go against your taxes.
  3. Your air travel provided you can show a good enough business reason/proof.

These are only a few examples and a CPA will be able to provide you more details based on the current IRS situation.Once you learn the basics of running a business you can easily apply them to any other field of your interest in the future.So start now!.All it takes is a few hundred dollars to register your company and to get started. In the next article I will share a few tips on how to register and run your corporation.