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<DIV><FONT face=Arial color=#0000ff size=2>Just on that note, Charlotte. One of
the biggest advantages of forming a company (proprietary limited) in my view was
that according to advice from my accountant, should I be sued then my company's
assets would be under fire, not my personal ones. It may be different in the
U.S.</FONT></DIV>
<DIV><FONT face=Arial color=#0000ff size=2></FONT> </DIV>
<DIV><FONT face=Arial color=#0000ff size=2>Kath</FONT></DIV>
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px solid; MARGIN-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A title=cfoust@infostatsystems.com
href="mailto:cfoust@infostatsystems.com">Charlotte Foust</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A title=accessd@databaseadvisors.com
href="mailto:accessd@databaseadvisors.com">accessd@databaseadvisors.com</A>
</DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Thursday, April 03, 2003 6:44
AM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> RE: [AccessD] OT Got it: Was...
Rate for first time</DIV>
<DIV><BR></DIV>You don't have to be incorporated for most contracts. All
they want is<BR>an actualy entity, rather than a private individual, and a
registered<BR>fictitious name (dba) serves that purpose. With a dba, all
you need is<BR>your personal tax id number. You don't need a different
taxpayer's ID<BR>unless you have employees.<BR><BR>Charlotte
Foust<BR><BR>-----Original Message-----<BR>From: MartyConnelly
[mailto:martyconnelly@shaw.ca] <BR>Sent: Wednesday, April 02, 2003 11:09
AM<BR>To: <A
href="mailto:accessd@databaseadvisors.com">accessd@databaseadvisors.com</A><BR>Subject:
Re: [AccessD] OT Got it: Was... Rate for first
time<BR><BR><BR><BR><BR>Hollis,Virginia wrote:<BR><BR>>Well I got it for
60.00. The only thing, they said I would either have <BR>>to get a tax
number or go through a temp agency. Well everyone knows <BR>>what happens
when you go through an agency... I would end up with <BR>>probably 30 of
that.<BR>><BR>>So, how do I go about getting a tax number?? Is there
anything else I <BR>>would need to
do?<BR>><BR>>Virginia<BR>><BR>> <BR>><BR> Hmm a
temp agency should take no more than 15 to 20 % for <BR>administering a
contract.<BR>Years ago I could get it for 10%, so shop around, I remember
getting it <BR>for as low as 5%<BR>when I had to get my contract assured under
a government master standing<BR><BR>offer..<BR><BR><BR> Generally there
are 3 major steps to take<BR> 1. Either incorporate your self or
form a limited liabilty<BR>partnership<BR>
(can be a partner of one). Takes a week. If you set your self
up<BR><BR>as a<BR> numbered coporation it
is quicker. They dont have to do a name
<BR>search,<BR> if you decide to name your
corporation as Virginia Hollis &
<BR>Associates.<BR> Once you have
incorporated or whatever level of business
is<BR>allowed<BR> in your state you go to
step 2<BR> 2 Take your State assigned incorporation number to a
bank and open a<BR> Business or
Commercial Account. You will have to show a <BR>physical
letter<BR> with the number. Takes a couple
of days.<BR> 3. Take your Bank Account and State Corporate Account
number.
<BR> and get your various tax
account numbers from state and
federal<BR> authorities (This is
fairly straight forward unless you are <BR>hiring other
people<BR> then you get into
withholding taxes.) Could be a week (who<BR>knows?)<BR><BR> Things
to consider:<BR> It will cost you more to
fully incorporate say 500 to 700
dollars<BR> I do it cheap (have a kid
brother who is a lawyer). In Alberta <BR>you
can<BR> incorporate online (just fill in
the forms). They will even UPS <BR>your minute
books<BR> and corporate seal. Fully
incorporated, you have less liability, <BR>a
limited<BR> partnership may leave you open
to a legal suit where your house <BR>may be up
for<BR> grabs. So you need Business
Insurance or E&O (Errors and <BR>Ommissions)
insurance.<BR> I don't know rates in US,
in Canada its about a 3 - 5 hundred <BR>dollars a year per
million<BR> depending on your business. At
least you don't need K&R insurance<BR><BR>from Lloyds
at<BR> 3000 a month per million
;)<BR><BR> You will probably want to hire
an accountant who will do your <BR>taxes and books,
don't<BR> skimp on this, in fact he can
probably advise you on the best <BR>form of
incorporation<BR> for your situation and
what intial steps to take. Also he will <BR>tell you whether it
is<BR> better for your corporation to pay
you via monthly dividends or a<BR><BR>direct salary
(which<BR> may mean withholding taxes,
unemployment insurance (more forms) <BR>etc
depending<BR> on your
state.<BR><BR> You can probably sign your
contract saying your government <BR>assigned
numbers<BR> are pending. Knowing how long
some companies will take to pay an
<BR>invoice,<BR> some can be longer than
90 days, you will probably be okay. If <BR>this is a
problem<BR> you might want to amend you
contract to a shorter time frame once<BR><BR>you have
had<BR> a lawyer look at it. Discuss this
before you sign. I have done <BR>3'd party
subcontracts<BR> to IBM where it has taken
more than 6 months to be paid. If this <BR>is the case you
may<BR> want to establish a good line of
credit with your bank. You will <BR>not get this for
your<BR> business for 2 years and
established a banking record and have a<BR><BR>written business
plan,<BR> so it will have to be personal
line of credit.<BR><BR> I might be
inclined to say go the temp route intially if your <BR>finacial situation is
such that<BR> you don't have several months
salary in the bank as a nestegg.<BR><BR> Take this with a
grain of salt because I am speaking from a
Canadian<BR><BR>perspective.
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