Incorporating a business offers a number of advantages. First, as a separate legal entity, a corporation limits personal, legal and financial liability. In the event of a lawsuit, the owner’s personal assets, property and reputation are separate from the corporation’s and are thus protected from the legal repercussions. Second, a corporation, as a separate legal entity, could easily outlive its founders and owners. Ownership is easy to transfer and thus consumers and investors are guaranteed that business will remain stable even in the event of a tragedy.
Depending on the corporate structure under which you choose to do business, you can elect to have pass-through taxation to your personal taxes, or you can avoid double taxation.
A corporation remains a corporation even if the owner leaves, dies, or sells off the company. It’s called perpetual existence.
A business with an INC, CORP or LLC extension after its name often sounds more credible to outsiders. You’ll most likely attract more partners, customers, and attention from the community if you choose some form of incorporation. Being incorporated can also help protect your business name in the state in which you do business.
If you’re trying to raise capital by selling shares in the company, you’ll need to be incorporated. You’ll also need to form a corporation if you ever plan to go public. Visit our Office or Ask to our Accountants.