Great Reasons to Incorporate!
March 31, 2009 by admin
Filed under Profit Corporation
Incorporation is not required. You can operate your business as a sole proprietor or in a partnership as long as you want. However, there are profound benefits to incorporating your business especially as a subchapter s or LLC entity.
Some GREAT Reasons to Incorporate Your Business:
1. If you’re not incorporated and you’re sued by someone you can lose not only the money that you have saved from your business, but all money you have ever saved, your house, your luxury items like boat or 2nd car… the courts could decide you lose it all. Not so with a corporation. In most cases your personal assets are untouchable.
2. You can establish a whole new credit line and credit rating separate from your personal credit profile. You need not rely on your personal credit to fund your business growth once you’re incorporated.
3. Save a lot of money on taxes. There are numerous deductions allowable on taxes for corporation and LLCs that aren’t for the sole proprietorship or partnerships.
4. Gain credibility for your business.
5. Find investors more easily. Investors – traditional and venture capitalists are more likely to invest in a corporation than an individual running a sole proprietorship or even a partnership.
6. Ownership transfers easily between people or other entities. You can transfer the ownership of an entire corporation just using a sale of stock.
Are there other reasons to incorporate your business – sure. Aren’t these enough though?
If you just look at two issues: Protection of your assets and tax savings at the end of the year – can you really go wrong?
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