Why Should You Incorporate Your Business
When you begin a business, there are so many things that you need to consider. The first and most critical aspect is what your business is going to be. You will need an idea and a name. After that, the rest is all details. You should find a location, decorate your store or office, hire some employees, and figure out who will mange each aspect of the business. One part of business that you may not think about right off is what type of business structure you will have. While there are many options to choose from, the following will discuss some important reasons to get incorporated.
Protection Of Your Assets
While you are probably like most other business owners and plan to thrive, you should protect yourself against going out of business or being sued. Unfortunately in today’s economy those are real possibilities that many businesses have to face. When you get incorporated, your assets will typically be protected in such a situation. Rather than all of your personal assets being up for grabs in a lawsuit, only your investment in the company will be available for the taking. This is not always guaranteed, but is generally the case.
Are you starting up a business, but you want to remain anonymous? There are probably a few reasons why you might not want the general public to know all of your business affairs. An incorporated business is a great way to achieve this privacy.
With another business entity, you cannot achieve the same level of tax advantages as you can when you become incorporated. Incorporating your business provides you a separate, distinct legal entity. Structuring different transactions between you and your company can save you money when it comes to taxes. If you are a part of a business entity, such as sole proprietor or another entity besides incorporated, you cannot participate in some of the same tax benefits.
Raising money through investments is a lot easier for a corporation than another business entity. Finding money from banks or other lenders is simpler when you are a corporation. Selling shares of stock is an effortless way to take on investors for a corporation.
While it might be all in the eye of the beholder, many companies have more authority simply because they have INC. or CORP. at the end of their company name. People feel more secure when they are dealing with a corporation. They feel like the business is more credible and that they can trust the business dealings that they have with a corporation.
As you look over your big list of items to get done before you can open up shop, don’t forget to become incorporated. With so many benefits ranging from protection of assets to tax advantages to simple credibility, it is no wonder why scores of businesses have already become incorporated.
If you have questions about the reasons you should become incorporated, there are places to turn. Visit www.torrencelhowelllaw.com to discuss some of those benefits and to really understand the legal benefits that come with being a corporation.
What business are you getting incorporated?