Question At what time would you incorporate?

[Puzel12]

Let's say you just launched a successful business and you don't own any assets. You are making 10-20k$ per month as a sole trader. It's not risky business or you have tax advantages as a sole trader. At what point would you consider incorporation and why? Protecting your assets?

Would you buy your first real estate under your own name or under a company for the future protection?
I was thinking that ideal plan would be to have 2-3 apartments/houses under your own name to have safety and cashflow even if the business die and then accumulating the wealth under company. Is it the right path or some of you would prefer to don't own anything and put all under companies?

 

[Onassis]

Puzel12 said:
Would you buy your first real estate under your own name or under a company for the future protection?
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Depends where it's located

Puzel12 said:
You are making 10-20k$ per month as a sole trader. It's not risky business or you have tax advantages as a sole trader. At what point would you consider incorporation
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As soon as possible

Puzel12 said:
and why? Protecting your assets?
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Yes

Puzel12 said:
I was thinking that ideal plan would be to have 2-3 apartments/houses under your own name to have safety and cashflow even if the business die and then accumulating the wealth under company. Is it the right path
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It depends on your tax residence

Puzel12 said:
would prefer to don't own anything and put all under companies?
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You would still own the companies hence the devil is in the details; it all depends on the countries involved

 

[bibing]

Puzel12 said:
Would you buy your first real estate under your own name or under a company for the future protection?
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It depends on a lot of factors:
1. Where are you going to buy it? Which country?
2. Which country are you a citizen of?
3. Are you going to get married one day?

Just based on how you answer these 3 questions you can get several different answers.

 

[CyprusLawyer101]

Whatever you do dont mix the properties with your business. You do not want any claim against your business to spill into unrelated assets. This is the first and primary reason why companies were created - to allow for limited liability ( hence the acronym LTD).

 

[wellington]

One thing owning a Sole Trader business, that is booming, another owning a sole trader business which has liabilities hitting it...

Incorporate and completely separate prior arrangements and reduce to non-existent, then inform repeat customers they are dealing with x ltd going forward.

 

[scooterguy]

Like others said, no need to mix your business with assets that could be separate.

You could, however, create other companies to own your properties.

 

[Spinat]

I would register my company before I start any business. You never know how it will develop long term. Doing it to late can course you troubles with the tax office or even stop you from getting any tax advantages.

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