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I need to become Inc. and I am confused about some things

by deb, Performer

  • Created: September 27, 2009, 11:28 pm
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hi, I want to contract my services out to a call center that works with contractors all over the United States, - except for Massachusetts... there is a law called the Massachasetts Independent Contracting Law. its to make sure employers arent trying to get out of paying employee benefits, anyway... This call center told me I cant contract my services out to them here in Ma, but if I want to become Incorporated, I am welcome to do that. Well, I am a bit confused on what exactly this means. If I register as a SMLLC, sole proprietor, is this considered Incorporated?
Tags: Discuss Popular Topics, Starting & Registering a Business
‹ Re: Welcome to the Business Law Advisor Starting a recreational oxygen bar in Texas ›

gjosephus | Contributor | 9/30/2009 - 11:28 am

Both Christine and Biz Researcher have covered most of the info you will need. By the sounds of it, you are set up on your own, and as you have already guessed, you may either either be a Sole Proprietor, or a LLC, and if you have a partner, you can register a partnership entity, once again either in the form of an LLC, or S-Corp. The main advantage of NOT going with the Sole Proprietorship, is that there the Proprietor is liability is no limited, and you personal assets (including cash) are at risk. With the Limited Liability Corp (LLC) type of entity, your liabilities are limited to the assets owned by the business. I would advise you to go with an LLC. Best of luck.
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BizResearcher | Window Shopper | 9/28/2009 - 2:12 pm

You would not be a sole proprietor if you are incorporated, since both are unique legal entity forms. Since you are small, you might consider filing the paperwork to become an S-corp. You might also find out if the call center would accept you if you are an LLC (limited liability company). The IRS reporting requirements are fairly similar for both an S-corp and an LLC. You can file the paperwork for an LLC yourself, though an attorney should create your Operating Agreement. If you decide to file as an S-corp, you need to file more paperwork, so you should have an attorney help you.

ChristineL | Former Moderator | 9/28/2009 - 11:56 am

Hi deb, Business incorporation and legal structures can be confusing. We have a simple breakdown on the Business.gov's Business Incorporation Guide. If you would like more information, we wrote some great blogs on it: Differences in Legal Structures and Should My Company be an LLC or S-Corp. Hopefully these will be helpful for you. If anyone has more information or experiences that they want to share, please feel free to chime in!