paladin - 1:34 pm on Jul 6, 2004 (gmt 0)

With all the different opinions you heard, I would suggest getting a second opinion from a different tax person, and maybe even talking to a lawyer.

The tax person will tell you what is worth doing based on tax laws, while the lawyer will tell you what is best based on the legal liabilities.

If your only reason of looking into this is for tax reasons, then stick with what your tax lady said. If you are also interested in the liability side then get a second opinion, or talk with her again and explain this.

Just keep in mind that even if you form a LLC or Corporation you are not protected 100%. In general if you consult a client wrongly, you can be sued personaly for it, even if you are under the umbrella of a corporation. The example we were given was if I am driving the company car and run a red light...who is responsible for paying the fine, me or the company? Common sense say me, even if it was with a company car on company business.