Incorporating your small business may be the smartest thing you ever do. There are several reasons why you should consider incorporating.
First, by incorporating your business you reduce your overall liability. With a corporation you can enter into lease agreements, borrow money and purchase goods and services on credit. When you sign on the dotted line, the corporation, not you personally, is liable and accountable for any agreements entered into under the corporate name.
Also, in our litigious society you are shielded from personal loss should the business be sued. Why run the risk of being a target with your deep pockets when you can transfer wealth to the corporation and protect your family from large losses due to a judgment or twelve jurors with a chip on their shoulders?
Of course, one of the most popular reasons for incorporating is to take advantage of tax deductions not available to sole proprietors and individual taxpayers. By incorporating, you can write off travel expenses, start up and operational costs of doing business, certain types of salaries and employee compensation, insurance costs, and even vehicle expenses, leases and mileage.
Speaking of taxes, if you’ve ever been audited then you know what a nightmare it is. Incorporations are audited far less than sole proprietors, particularly if you run your business out of your home.
A corporate structure can also provide you some privacy. Shareholders can remain anonymous and you can structure your corporation in such a way that your name is absent from all public records. This is a very powerful strategy as it shields your name from shady lawyers seeking a well to tap for their greedy and unscrupulous searches for lawsuit targets.
Incorporating also gives the appearance that your business is larger. This could be beneficial if you seek investors or partners for a joint venture. Even potential customers will be impressed by the appearance of stability and security that an incorporated business offers.
Finally, a very powerful business strategy that is gaining in popularity is the easy transfer of title and property through the corporation. You can hold real estate, automobiles, stock or other assets in the name of a corporation and still control them. This allows you privacy, protection and versatility.
The corporation is the perfect tool for the entrepreneur who seeks more control, greater wealth flexibility and more security from the taxman’s hand and the lawsuit happy gold digger. It’s a strategy worth considering.
Learn more about incorporating your business online at http://www.incparadise.com. You can set up a Nevada Corporation for much less without a lawyer, or incorporate in any U.S. state, with less hassle and for much less than with your local attorney or law firm.
Allen Taylor is a freelance writer and entrepreneur. His personal research has led him to believe many businesses can benefit by incorporating online. Learn how you can incorporate online at Inc Paradise. |
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