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To: ahhaha who wrote (3390)	11/2/2001 12:19:09 PM
From: GraceZ	Read Replies (2) of 24758

Most of my clients that are incorporated are incorporated primarily for reasons of limiting liability. They don't do it for presumed tax savings because as I said earlier in regards to my own decision not to incorporate my business it is a dollar swap between what you might save in taxes and what you will pay for increased complexity in accounting and tax preparation for a business of my size. As for limiting liability, even that is questionable. My brother-in-law changed the business structure of the family business from sole proprietorship to S corp years ago to limit liability and also as a way to pass that business on to the next generation. This business is an institution in the South Philly neighborhood it resides in, some of the people who work for him are third generation employees, as well as his customers. As soon as the paint was dry on "INC" at the end of the business name he started receiving one frivolous lawsuit a month, whereas before incorporation it was maybe once every two years. Of course, the insurance company settles in almost every case and passes the cost onto him in the form of much higher rates. It has almost driven him out of business to deal with the increase in cost.

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