Incorporation?

[Jack_of_all]

I am at the point that Im ready to incorporate my business, and Im not sure what to do. I ve already consulted an attorney, but they told me to enlist the services of an accountant. First of all, im not sure if I need to find an "adult friendly" accountant in Los Angeles, or will any CPA do? Is there anything special about incorporating an adult business that I or the accountant should consider? Also, do you agree that an accountant should handle this, or possibly a corporate attorney? Not sure the best way to go about this, or how to find a good one once I decide! Thanks

[Hammer]

I'm guessing you don't already have an accountant?

Using an accountant to set it up for you will cost far less than using an attorney. There's really nothing to it and it can be done online for about $85.

Unless you're incorporating with a name like Tit Fuckers, Inc., there's no reason why your accountant needs to know it's an adult business.

[mynameisjim]

Generally, an accountant will help you set up your incorporation.

If there are other partners or investors, an attorney is probably needed to set up the contracts but if it's just you, an accountant should be fine.

Of course, I'm not a lawyer or an accountant but the above has been my experience.

[Jack_of_all]

Thanks for the quick responses.

Judging by your responses, it seems that there is no discrepancy with it being an adult business. I guess I was under the impression that incorpration of adult production company might be different than your average corp. So, with that being said, would you take steps to keep anything adult out of the name?

[balls_deep]

Originally posted by Jack_of_all
So, with that being said, would you take steps to keep anything adult out of the name?

as with any corp or business name, you want to blend in come tax time. Weirdo Inc. got audited 2 years in a row before they changed their name. I personally have never been audited. When audited if you don't flag on the random system there is a human actally picking names out of a book. you don't want to stand out too much when it comes to your books.

[mynameisjim]

I sort of like the name mentioned earlier, Tit Fucker, Inc. Shows the IRS you're bad-ass and not to be messed with.

[Jack_of_all]

Originally posted by mynameisjim
I sort of like the name mentioned earlier, Tit Fucker, Inc. Shows the IRS you're bad-ass and not to be messed with.

LOL! You have to wonder if the IRS will really share that sentiment!

Balls,
Great point you make. So, It makes sense to inc. under an unassuming name, but what about the urls under the site? would that not raise a flag? Arent they mentioned in the aritcles of incorporation? DOnt really understand how the urls and the corp name relate, or if they are even officially affiliated. if that makes sense...

[Jack_of_all]

Originally posted by mynameisjim
I sort of like the name mentioned earlier, Tit Fucker, Inc. Shows the IRS you're bad-ass and not to be messed with.

LOL! You have to wonder if the IRS will really share that sentiment!

Balls,
Great point you make. So, It makes sense to inc. under an unassuming name, but what about the urls under the site? would that not raise a flag? Arent they mentioned in the aritcles of incorporation? I dont really understand how the urls and the corp name relate, or if they are even officially affiliated. if that makes sense...

[Hammer]

I would suggest a corporate sounding name and setting up a nice corporate looking web page to represent that company. The rest of your sites have nothing to do with the corporation.

[porn punk]

Question: Why Los Angeles? I live in Los Angeles and I'm looking to incorporate in Nevada for reasons that should be obvious, but I'm curious why you're asking to incorporate in Los Angeles since you av says North Carolina

[Jack_of_all]

I recently moved to LA and havent changed my profile. sorry
As far as incorporating in LA, I figured why not incorporate in the only place that producing pron is legal. Not sure if it matters that much, but it would be nice to take advantage of the NV tax breaks. Dont you have to have a physical presence to incorporate anywhere? At least an address for mail? Ive been wondering this.

[mynameisjim]

You can incorporate anywhere, you just pay a registrar service an annual fee. I guess you can do it yourself but I've always used a service.

The laws may be different for different states but that's how it has always worked for me.

[porn punk]

The tax breaks are what have my eye on Nevada, but not sure of the porn laws there. Thought you were still in Carolina, but if you're in LA you'll find the best of the best out here as far as civil rights lawyers and entertainment lawyers go.

It's just that it's just as expensive as the northeast for small businesses so that's why I'm eyeing Nevada. They have that legal prostitution there which might not be the same thing, but is at least in the ball park.

If you're not too greedy you're probably better off doing what you're doing though and staying in LA

Originally posted by Jack_of_all
I recently moved to LA and havent changed my profile. sorry
As far as incorporating in LA, I figured why not incorporate in the only place that producing pron is legal. Not sure if it matters that much, but it would be nice to take advantage of the NV tax breaks. Dont you have to have a physical presence to incorporate anywhere? At least an address for mail? Ive been wondering this.

[Jack_of_all]

I wonder about the possibility that a s-corp in LA flowing through to an S-corp based in NV may provide the legal benefits of producing in LA with the license of an LA business, but having the income flow through to NV for tax breaks. Is that possible? Seems parent companies have subsidiaries in different states all the time.

[porn punk]

Originally posted by Jack_of_all
I wonder about the possibility that a s-corp in LA flowing through to an S-corp based in NV may provide the legal benefits of producing in LA with the license of an LA business, but having the income flow through to NV for tax breaks. Is that possible? Seems parent companies have subsidiaries in different states all the time.

Truthfully, you're already ahead of me. But I do plan on asking someone this little detail if I can relay it properly. If I find out anything about it anytime soon I'll let you know what I learn but you'll probably be all set by then.

Good luck with it and welcome to LA

[Jack_of_all]

Sounds a little to good to be true, but its worth a try! Seems that being the person at the end of the "flow through corps", and still living in cali, you would probably still be responsible for state taxes on your personal income. This of course would be all income from both corps.

However, if you were to make the NV corp a C-corp, you could keep alot of the income as retained earnings in the C-corp, then you could pay yourself a salary, and only be taxed cali taxes on THAT income. The retained earnings could then be payed out as dividends, which of course are only taxed at a 15% capital gains rate. However, the IRS will expect you to pay yourself a "reasonable" salary. Of course, you would still be hit by double taxation (federal tax on all net income, plus the 15% on capital gains on you personal income), but it seems that avoiding the state taxes in LA might make it a worthwhile option.

Need to crunch some numbers to figure out if its really worth it, especially considering the additional setup costs, and possible yearly corp fees.(think I read NV charges like $800/year if you have no physical presence)

Anyway, let me know what your acct says. Thanks!