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should an engineering firm be a private Ltd or a corporation?

should an engineering firm be a private Ltd or a corporation?

should an engineering firm be a private Ltd or a corporation?

(OP)
me and my buddy are thinking of starting up a civil engineering co. but we dont know wethere to go for a corparation or a private limited company which one should we go for considering the benefits in terms of taxes etc. some one please throw some light.

RE: should an engineering firm be a private Ltd or a corporation?

What state/country are you in?  Are either of you a PE?  Pros and cons to corporations and partnerships.  You can check your state website, and also talk to CHamber of Commerce where you want to set up shop.  They can talk to you about the specifics of your location and the requirements.

RE: should an engineering firm be a private Ltd or a corporation?

This is probably more a matter of tax burden and liability than anything else.  I have an LLC (which is deemed by the IRS as a partnership), which prevents me from being taxed as heavily as I would be if I had a C-corp or similar.  You may want to check into the taxation side of things to see what works best for you.

Jeff Mowry
www.industrialdesignhaus.com
Reason trumps all.  And awe transcends reason.

RE: should an engineering firm be a private Ltd or a corporation?

I would suggest you talk to your accountant and lawyer first. He/she should know best for your area, and line of work.

"Do not worry about your problems with mathematics, I assure you mine are far greater."   
Albert Einstein
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RE: should an engineering firm be a private Ltd or a corporation?

Ashereng has the right idea.  I would go to the accountant 1st.  It will depend on what you want to accomplish.  For example, with a C-corp you can provide a health insurance program for you and your partner, the downside is C-corps are taxed at corporate rates AND your pay from them is taxed at your personal rates - double tax.  An S-corp (or an LLC) will avoid that and all money will flow to your personal tax return but you are limited on what the company can do for you.

Just be prepared to explain what your goals are and a good CPA can get you fixed up on what type of structure you should set up.

Greg Lamberson
Consultant - Upstream Energy
Website: www.oil-gas-consulting.com

RE: should an engineering firm be a private Ltd or a corporation?

Check the legal requirememts for your locality (your state if in the US).  You may be legally restricted in the type of business entity that you can form if you are providing engineering services.  

Jack M. Kleinfeld, P.E.  Kleinfeld Technical Services, Inc.
Infrared Thermography, Finite Element Analysis, Process Engineering
www.KleinfeldTechnical.com

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