Independent sales rep should they incorporate ?

by Bobby
(miami,fl usa)

Independent sales rep should they incorporate ?
my wife is a MaryKay consultant and i an independent sales rep for a manufacturing company.Should we incorporate seeing that everything is paid on commission on a 1099 ?
thanks.

Answer

Take a look at the basic reasons to incorporate--protecting your assets and potential tax savings.

I'd say it's a toss-up for your wife--the MaryKay consultant--and that you probably don't need to incorporate.

As a reseller of MaryKay products, if there is, for example, a products liability issue (say the cosmetics injure people), then the resellers could get dragged in.

Having a corporate form would protect your personal assets in that situation.

Only you can decide if the expense is worth it.

Comments for
Independent sales rep should they incorporate ?

Average Rating starstarstarstarstar

Click here to add your own comments

Dec 05, 2008
Rating
starstarstarstarstar
thanks
by: Anonymous

thanks alot very helpful.

Comment from Admin

You're welcome.

One more thing I'll note is that your wife does not have to incorporate to take business expense deductions for her MaryKay business.

Take a look at Turbotax for small business and see how she can reduce taxes by claiming expenses for her business.

The main consideration here is to keep copies of receipts and explain why whatever she purchased is for a business rather than a personal purpose.

Click here to add your own comments