Most new EVIL enterprises start off without any thought for their legal structure, but whether your plan is to seize control of the moon, to hypnotize the world’s young people with fidget spinners, or to take control of Scrooge McDuck’s money vault, you need to think about the tax implications. Don’t forget: it doesn’t matter if you’re the good guys or the EVIL supervillain, taxes are universal.
The default, in the eyes of the IRS, is a “sole proprietor” which means that whatever profits and expenses that you have go directly onto your personal tax return. This may make sense for small EVIL businesses, but as you start growing your EVIL empire you should consider formally incorporating for the following reasons:
- Asset Protection: If you are sued as a sole proprietorship, you might lose your EVIL shirt off of your EVIL back, but if you’re incorporated someone suing your EVIL business is usually limited just to corporate assets.
- Personal Liability: Similar but slightly different, the corporation can protect you against injuries or losses arising from the actions of your business. You don’t want to be held responsible for everything that your minions do, do you?
- Stock Issuance: You can grow your EVIL empire by issuing shares to other supervillains or offering stock options to key minions. As part owners in your EVIL plan, your minions will commit themselves more and work harder toward your EVIL ends.
- Tax Flexibility: Like an EVIL yoga instructor, corporations are significantly more flexible when it comes to taxes, and no matter how evil or good you are, paying less in taxes is something almost everyone wants.
- EVIL Presence: Incorporating is a great way to send a signal that your EVIL enterprise should be taken seriously. Many vendors and businesses prefer to do business with incorporated entities, and establishing lines of EVIL business credit as you build that giant space laser can help you manage your supply line.
If you’re wondering if incorporation (or EVIL incorporation) is right for you, give us a call and we’ll talk about the tax implications.
* We have the best people and are more than willing to work with superheroes too. We can even help normal people with their businesses, even if they don’t have super powers or intend to conquer the moon.
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