How can I make my small business into a corp?

Question

What kind of corp would it be ?

Im in the state of california ...Im the only owner

How much to convert it ?

What is the benefits ? and negatives ?

Answer 1

The main benefit is to protect your personal assets and also tax protection.  You will likely want to do a S-Corp as it prevents double taxation on dividends.  However, I would also look into possibly starting an LLC versus a corporation if it is only you.  The main reason to consider this is less work involved to maintain the LLC with a lot of the same benefits.  But remember once you get the entity started, there is a minimum $800 tax that needs to be paid annually regardless of use of the entity.  If you were to use a site such as legalzoom.com....getting things started is usually around $400-$700.