I wanted to get an idea from some of the established freelance translators out there as to how many people have chosen for whatever reasons to become incorporated versus how many are sole proprietors.
To make things simple, I created a poll. Please head over to http://www.polldaddy.com/p/407315/ if you have 5 free seconds, but do come back!
If you don’t feel like taking the poll, I’m quite okay with that. Perhaps you would like to post your comments to this post, sharing this information.
I’m just curious. I would think many people would keep things simple and remain unincorporated. But my hunch may be wrong. Are the tax incentives enough to convince freelancers to incorporate?
2 responses so far ↓
Corinne McKay // March 12, 2008 at 12:15 am
Incorporating also has some liability advantages (for those of us in the lawsuit-happy US!) in the sense that it separates the business’ assets from your personal assets. Also, here in the US, corporations that are one person, or one person and a spouse can set up their own 401K plan and run it just like a large corporation’s 401K plan. My husband and I have one through Charles Schwab and it lets us contribute more money and classify it as “employer contributions,” thus taking the contributions out of pre-tax dollars.
Michael // March 13, 2008 at 12:41 am
More than 10 years ago, in these lawsuit-happy U.S., I un-incorporated to get rid of the paperwork and the cost. I frequently hear the liability argument but think it is a red herring. When was the last time that only the corporation got sued and not its directors? If they want to come after your money (provided there is some), they are not going to stop at the corporate entity. The advantages of benefit & healthcare plans, on the other hand, are pretty real.
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