For: Mr. Guzman

[vpmiami]

Mr. Guzman,

Is this true, can you actual start a small operation, ONE MAN OPERATION... without acutally incorporate in DR?

How is this possible.. I read the following from this website.

What is considered "INFORMALLY"

This business will be a service business.. a service for Kids parties?

3. If you are a small operation, start doing business informally to see if there is a market for the idea. If it works, incorporate. You will need a lawyer to do this. Consider incorporating as a business of a single owner or as a company with at least seven shareholders. The advantage to being a compañía por acciones/sociedad anónima is that you will not be personally liable for actions taken while doing business.

[Fabio J. Guzman]

You don't have to incorporate to start a business. Most people, however, do incorporate to avoid personal liability in case the business goes under.

[vpmiami]

How would you report you taxes.. if your not incorporated? What is Personal Liability exactly? I get Personal Liability insurance?
What is the cost range to have a Lawyer in your firm to prepare and complete the forms for a S Corp.? How long does it take to Incorporate and recieve the Articles?

Here is cost $385.00 and it takes about two weeks for the articles to arrive?

If I wan to Copy Write and Trademark in the US, do I also have to Copywrite and Trademark in DR?

Thanks...

[vpmiami]

Mr. Guzman,

How do Dominicas have a business without being Incorporated? How do they report their earnings to the Goverment and pay taxes on Captial gains or even pay employess?

[AnnaC]

Taking a deep breath! vpmiami Mr Guzman is a busy man and it's so great of him to drop in and answer some of our questions. But it sounds like you don't understand many thing about business or maybe it's all new to you and you're not clear on the whole picture. Do you know what capital gains are exactly? Mr Guzman said that some incorporate to avoid personal liabiliy. That means if the business goes under the people you owe money to can't come after your personal assests.
You have personal liability insurance? Good all that means is that if someone gets hurt on your property the insurance company will take care of it. Or in the case of car insurance well that's a different subject.

[vpmiami]

I have two business here in MIAMI... but in getting some fed back.. it appears to work totally different in DR. Yes, I do know what Capital Gains means.... Thanks for the information on Personal Liability. being that I am incorporate in Miami.. I did not need to acquire Personal Liability. However.. in the US.. you need to have a minimum of an "S corporation to operate a buisness.. with this... comes a Federal Tax ID number.. so that you can file your taxes.

How do Dominicans operate a business without being incorporated? How do you report your earnings.. wouldn't some govenment agency track you done.. and close your business?

[m65swede]

Originally posted by vpmiami
However.. in the US.. you need to have a minimum of an "S corporation to operate a buisness.. with this... comes a Federal Tax ID number.. so that you can file your taxes.

Let me poke my nose in here to comment that one is not required to form a Subchapter S corporation to operate a business in the US. There are many legally acceptable forms of business ownership, of which the "S" corporation is but one.

Most of my friends and relatives operate businesses. Most are individual proprietorships, some are incorporated, and some have various forms of partnerships.

Federal Tax ID number isn't a problem for individuals; SSN is sufficient.

Swede

[vpmiami]

Swede,

How can I get more information on this... do you have suggestions....

I would rather hold off on spending money on setting an "S" Corp. Mr. Guzman states it's pretty expensive. I would like to see how well my business does before I actually Incorporate.

Isn't Individual Proprietorship that same as an "S" Corp.

How about if you have to employee one or two employees?

Thanks for any update....

[vpmiami]

Swede...

I am actually inquiring about business in DR.. not the U.S.

Sorry about the confusion.. Would you happen to know anything about how it's done in DR?

[Robert]

Just out of curiosity, did you read the business section of DR1?