The nature of business is changing rapidly in the United States. While owning one’s own business or being one’s own boss may still be a big part of the American dream, businesses take many forms. A recent article by Rachel Paige King describes how career advice books released over the last several decades reflect the changing realities of work. Today it is normal to have several jobs, multiple freelance gigs, or one salaried position and multiple side hustles. Accountants are used to clients handing them a tall stack of W-2 and 1099 forms at tax time. In fact, there is a good chance that your tax preparer is an elementary school teacher by day, tax accountant in the evenings, and dog walker on weekends, and maybe she even has a monetized blog. Thus, the question of whether you should incorporate your business, and in what form, is less simple than ever. The best thing to do if you are considering forming a corporation is to contact an attorney who is well versed in North Dakota business law, such as attorney Stephen Welle.
You Might be a Businessperson and Not Even Know it
Not all business owners spend their days supervising cooks and servers in a restaurant or employees in an office. In fact, you might have something that legally qualifies as a business even if it is not related to your work at all. For example, if you hire a babysitter to care for your children while you are at work and a landscaper to mow the lawn in your front yard, it makes sense for you to file taxes as a sole proprietorship. Likewise, you might want to incorporate as a sole proprietorship if you are one of the growing number of Americans who make their income through freelance gigs that issue 1099s instead of treating their workers as full-fledged employees. Of course, sole proprietorship is only one of the entity classifications you can choose. Before you register your business, you should consult a small business attorney about entity designation, even if you think you have made up your mind based on the advice of friends or your tax accountant.
Taxes are Just the Beginning
You might think that paying taxes and preparing to file your tax return are a hassle, but they are child’s play compared to being a defendant in a lawsuit. Legal liability issues are perhaps the most important reason to form a corporation. A business attorney like Stephen Welle can give you advice about how to protect your business and your personal assets in the event that someone files a lawsuit against your business.
Contact O’Keeffe O’Brien Lyson Foss About Legal Services for Businesses
The best time to consult a small business attorney is before you start your business; do not wait until your business is in financial or legal trouble. Contact O’Keeffe O’Brien Lyson Foss in Fargo, North Dakota or call 701-235-8000 or 877-235-8002 for a consultation.