2008Legal / Business Practices forum
Transferring personal business assets and equipment into a newly formed corporation
18 years old. Gear and prices may have changed since.
What the thread found
- Personal assets and equipment do not automatically become corporate property when someone becomes an officer; they must be formally transferred or sold to the corporation with documented valuation and share issuance in return.
- Insurance certificates must be reissued in the corporation's name, and the insurance company must be notified of the ownership change.
- Vehicle titles should be transferred to the corporation's name to clearly establish corporate ownership and allow insurance updates.
- A newly formed corporation starts with no credit history regardless of the owner's personal credit rating, which can affect approval for business credit cards and phone services.
- Business expenses such as phone bills and credit cards are then issued to the corporation rather than the individual owner.
- A corporation can purchase certain products at wholesale pricing that may not be available to individuals.
- Incorporating can result in significant tax savings in the first year that may exceed the costs of legal setup and attorney fees.
Depends on
- This discussion is from 2008 and reflects business practices and credit access from that era.
- The specific tax savings and timeline mentioned apply to the individual's particular situation and jurisdiction.
- Wholesale pricing availability depends on the specific product and supplier.
- No details provided about liability protection, ongoing compliance requirements, or state-specific incorporation rules.
- The conversation mentions legal assistance costing a couple thousand dollars without specifying what services that included.