I enjoy reaping the knowledge from everyone’s experience, and I am new to the home inspection field and I have a question. In going through the safety guide class there is a section that gives 15 (I think it’s 15) things every home inspector should know. Number 2 is titled ‘Incorporate’ and the last sentence reads; “No inspector should operate as a partner or sole proprietor…ever” Can some explain this Please? Are they saying you should not partner with someone or be the sole owner (proprietor) of your company?
It a legal form of operating a business.
Plenty of "one man " shows around, they are not operated as sole proprietor or partnerships, typically the most common in this industry is LLC or Type S corp.
The chief benefit of incorporation is your personal fortune is not at stake in any litigation. If your incorporated business is sued, they can’t attach your home or bank account. There are also a lot of tax ramifications to incorporation in terms of tax rates, overhead, and depreciation of equipment. These tend to be limited for individuals. You really should look into this, otherwise you will be taking chances and paying taxes unnecessarily.
One of the purposes of incorporating (LLC or type S), is to separate your businesses liabilities from your personal assets. One has to be careful to observe the rules governing LLC’s and S-corps, lest one “pierce the corporate veil”, as described in this article.
By all means, incorporate. Just be sure to follow the rules or it will be to little avail.
Thank you for your response William, that is an interesting article. It is good to know that there are risks, but also that there are risks when one is incorporated. Takes away that false sense of security.
Talk to your Accountant. There are Pro’s and Con’s to the various setups. While some are offering correct information, it is correct information… FOR THEM! Get professional help from those that can actually make a difference, not a bunch of goons on a MB (me included)!
