McQuown - Inc. Yourself, 11th Edition: How to Profit by Setting Up Your Own Corporation

Judith McQuown always gives you the right advice to create and make your new business flourish. If you dont understand that your best wealth-builder is your own company, you will by the time you finish the latest edition of Inc. Yourself.

Adriane Berg, former WABC Radio host

Inc. Yourself has set countless readers on the road to entrepreneurial success with its excellent advice. In the process, it has become one of the most respected business books in America today.

Alan Caruba, Bookviews

Finally...a guide that cuts through all the legal jargon with clear and actionable information! We recommend it on our national radio program all the time.

Daria Dolan and Ken Dolan, WOR Radio Network, CBS Television

lnc. Yourself is a true entrepreneurial classic. Before starting your own business, this is the one book you must read!

Chris J. Witting, Success Journal Radio Network, WMAQ Radio, Chicago

The next millennium will be the era of the entrepreneur. Inc. Yourself should be the first book you read, before you formally go into business.

Mitchell Schlimer, chairman, Lets Talk Business Network, Inc. and radio host, Lets Talk Business

I have found Inc. Yourself to be an interesting and important guide for my students. Nowhere else can they find such a detailed discussion of the impact the decision to incorporate can have on their personal financial lives. I look forward to recommending the new edition.

Christine Helm, Small Business Center, Fashion Institute of Technology

The first step in starting a business is to get off on the right foot, and this classic does that. Read it and reread it before you talk to your professional advisers, as it will save you a fortune.

Joseph R. Mancuso, founder, Center for Entrepreneurial Management and Chief Executive Officers Club

Inc. Yourself is an indispensable resource for the small business person. If youve recently left the corporate world to go into business for yourself, or if youre thinking of doing so, this book is a must.

Stephen M. Pollan, author of Die Broke

This invaluable guide shows you how to cut your taxes, shelter your income, get free insurance, and put it all together as an entrepreneur or professional.

Marilyn Ross, co-author, Shameless Marketing for Brazen Hussies

With free agency, self-employment, and entrepreneurship as the wave of the future, we badly need good books like Inc. Yourself.

Michael C. Wilder, Lt. Colonel, USAF (retired)

Judith McQuowns...Inc. Yourself offered a powerful message to my Central New York listeners and the North American readers of my Elks small-business column. McQuown raises the pertinent questions that every small-business owner and entrepreneur should ask.

John C. Behrens, WlBX/CBS

Whether youre a one person band or a full orchestra, Inc. Yourself can help you strike out on your own.

Sonya Donaldson, Home Office Computing

How to Profit by Setting Up Your Own Corporation

Judith H. McQuown

All rights reserved, including without limitation the right to reproduce this ebook or any portion thereof in any form or by any means, whether electronic or mechanical, now known or hereinafter invented, without the express written permission of the publisher.

Copyright 2014 by Judith H. McQuown

Edited by Jodi Brandon

Cover design by Rob Johnson/Toprotype

978-1-5040-2017-6

The Career Press, Inc.

220 West Parkway, Unit 12

Pompton Plains, NJ 07444

www.careerpress.com

Distributed by Open Road Integrated Media, Inc.

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New York, NY 10014

www.openroadmedia.com

In loving memory of four remarkable women:
Bessie Rosenberg, my grandmother
Pearl Hershkowitz, my mother
Isabel Rosenberg, my aunt
Rhoda Haas, my godmother

This book could not have been written without the help of many experts, for whose time, knowledge, patience, and enthusiasm I am most grateful.

In particular, I wish to thank Sales Doctor Brian Azar; Melody Borchers, former manager, Womens Business Resource Program, Ohio Department of Development; John A. Challenger, CEO, Challenger, Gray & Christmas; Paul A. Gibson, Statewide HUB Program Manager, Texas Procurement and Support Services (TPASS) Division; and some very helpful people at the Internal Revenue Service who must perforce remain anonymous.

Special thanks go to Alan E. Weiner, CPA, JD, Partner Emeritus, Baker Tilly Virchow Krause, LLP; Lauren Melesio, Crains New York Business; Linda Knopp, Director of Knowledge Services, National Business Incubation Association; Leonard B. Stern, president, Leonard B. Stern & Company; Cathy G. Waxenberg, Esq., president, Laiken Associates, Inc.; and Alfred Wheeler, Esq., of Counsel, McElroy, Deutsch, Mulvaney & Carpenter, LLP.

As always, I am grateful for the help, advice, and unflagging support of Claudia Menza, my agent; Michael Pye, my editor; and Ron Fry, my publisher.

First you jump off the cliff; then you build your wings on the way down.

Ray Bradbury

The best thing about the future is that it comes only one day at a time.

Abraham Lincoln

Dont play whats there. Play whats not there.

Miles Davis

Ive spoken to hundreds of people who have gone into business for themselves. Ive yet to find one whos said, You know, I really enjoyed that cubicle.

Scott Adams, creator of Dilbert

The cure for boredom is curiosity. There is no cure for curiosity.

Dorothy Parker

It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.

Charles Darwin

Everything in life has some risk, and what you have to actually learn to do is how to navigate it.

Reid Hoffman, LinkedIn co-founder

Fortune favors the prepared mind.

Louis Pasteur

The future belongs to those who believe in the beauty of their dreams.

Eleanor Roosevelt

At no time in the 37-year history of Inc. Yourself have there been so many changes as between the 10th and 11th editions. This is especially true in the areas of an entrepreneurs choice of business organization, choice of pension plan, and choice of strategies and tactics of investing his or her corporate surplus.

And yet some things do remain the same. The core reasons that people become entrepreneurs have not changed. Much like Shakespeares comment on greatness in Twelfth Night, some are born entrepreneurs, some achieve entrepreneurship, and some have entrepreneurship thrust upon them.

Many people have become reluctant entrepreneurs. By early 2002, just when we all thought that the tsunami of corporate downsizing had been completed, more waves of downsizing by Fortune 500 companies came crashing down on our unprotected heads.

In the preface to the ninth edition of Inc. Yourself, I mentioned Raytheons announced layoff of 10,000 workers, AT&Ts announced cut of 19,000 employees, Boeings of 20,000, and Compaqs and Motorolas of 17,000 each.