Caterers, I need your opinions please.

The company I work for is incorporated. We have both a physical location and a catering operation. As you said, this isn't a substitute for legal advice, but it seems to me that a corporation or a LLC type set-up provides protection for you personally if the business goes under. Also, if you have a smaller operation, a large lawsuit for any reason could bankrupt your business. You carry insurance for these sorts of things, but if a judgement were to exceed your coverage, your company would be liable for the difference. I think these sorts of organization types will limit your personal exposure. But, I'm not a lawyer. I would recommend anyone looking to start such a business consult both legal counsel and a qualiified accountant.

My company is a C corporation.

Consult with your attorney to decide which is the best option for you.

Any other questions concerning catering with a cookshack or general catering questions, feel free to post them here!

carl

quote:

Originally posted by CaterGreat:
[qb]My company is a C corporation.

Consult with your attorney to decide which is the best option for you.

Any other questions concerning catering with a cookshack or general catering questions, feel free to post them here!

carl[/qb]

Hey catergreat....what is C Corp? I have a small smoking business I i'm opening this coming summer after I get all the ducks in a row and this is one of those ducks.

basically there are two types of corporations, c and s corps.

an s corp is taxed like a partnership or sole proprietorship, but has the liability protection like a corporation.

a c corp is taxed as a separate entity... so a corporate tax rate applies....

both give you protection that a standard sole proprietorship or partnershp does not... a (against lawsuits, etc...)

a corporation is an entity just like a person.. it basically exists outside the owners... whereas soles and partnerships do not exist beyond the owners...

You have heard of LLC, limited liability companies, they offer protections like corps do... but we are getting way outside of my expertise... talk to your CPA or attorney.

(standard disclaimer applies here....)

carl

Ninh,
The type of Corporation that you select is to limit your personal liability..., it also is dependent on the state where you incorporate. I suggest that you look into the Nolo Press publishers for the State of Indiana (I don't know if they publish a corporation guide for all states). Their publications have saved a lot of legal fees when it comes to incorporating.

I advise that you do contact an attorney after you have reviewed what it takes to incorporate and have made the decision as to what type of corporate entity that you want and how much of the filing you want to do yourself listing him as the legal service agent representing the incorporated entity.

Hope this helps a little.

Gilly