Have you thought about incorporating your business or forming an LLC? If you own a business that deals with the general public, it is almost always in your best interest to incorporate it.
Many small businesses, however, consider themselves ‘too small’ to worry about incorporating. However, whether, you’re a self-employed web designer, landscaper or social media consultant, incorporating or forming a Limited Liability Company (LLC) can be a smart idea. Incorporation has many advantages including limiting your personal liability, tax breaks and credit, amongst others. Here’s why:
Liability Protection: By operating your business as a sole proprietorship or general partnership you put all of your personal assets at risk for the actions of your business. A Corporation or an LLC can be used to protect the owner’s personal assets from any liability of the company as well as to reduce your personal liability. For example, if something goes wrong in the business and a creditor isn’t paid, they can hold you personally liable and sue you for the money. If you can’t pay, they can force you to sell off your personal assets. By incorporating, your personal assets (i.e. property, savings accounts) are shielded from any judgment against your business.
Taxes: Federal income tax rates are typically lower for corporations than for individually owned businesses. And as a corporation, you may be entitled to additional deductions as there are several deductions and tax strategies available to a Corporation and LLC that are not for the sole proprietorship or general partnership. One such advantage is that sole proprietorships and partnerships are restricted to a $3,000 limit on capital losses that can be claimed on taxes, whereas there is no limit on the capital losses that a corporation can claim.
Credibility: Adding an “Inc.” or “LLC” after your business name it implies that your business is larger and more knowledgeable. The general public perceives an incorporated business as being more established, professional and serious about its business. It also adds credibility in the eyes of customers, vendors and potential partners.
Access to Capital/Business Credit: The easiest way to raise capital for a business and get investors involved is to offer stock or interests in your company, which in turn is simple to do after a business becomes incorporated. A corporation is also treated as a new and separate legal entity wherein the corporation enters the world with a brand-new credit score. This may result in significantly better access to credit (and thus, easier lending) than the owner’s personal credit rating. And forming a C Corporation will be essential if you plan to seek Venture Capital funding.
Added Layer of Privacy: With a Corporation or an LLC, the company’s ‘Registered Agent’s information is listed on public record for the entity, and not the owner’s name, home or business address (in most cases).
Transfer Ownership Easily: You can transfer ownership with a corporation or LLC with a simple sale of stock. Another reason to become incorporated is the ease of transfer of a corporation, as opposed to the business activities of an individual or partnership. Corporations are easily bought, sold or transferred, and they are unaffected by the death or retirement of a founder or owner
Continuity of life of business: If you operate your business as a Sole Proprietors, it’s a sad fact that your business dies when you die. Corporations and LLCs are durable meaning that the existence of a corporation is not affected by the death of its shareholders or board members. Both entities can continue in existence after an owner dies – the business can be inherited by family or a third party and they can continue to operate the business.
So how do you even go about filing all the necessary paperwork and making sure that you’ve done it all correctly? With a reputable business development and advisory firm service such as Integrated Corporate Solutions. With ICS, you have a one-stop-shop for all of your business development and filing needs. Everything can be handled at once, and all for an extremely reasonable fee. Check out our list of business development solutions to get an idea of how we can help you to get started.
Our professional staff has the knowledge and expertise to help you every step of the way. From helping you evaluate your business concept to business plan development to filing with the Secretary of State, ICS can make the filing process quick and painless.
Let ICS apply for your DBA (also known as a Fictitious Name Filing). If you aren’t sure whether you need a DBA, we can advise you as to your state’s specific requirements, and file the appropriate documents for you.
Once your business is incorporated, ICS can continue to provide valuable support services. If you need to make any changes to your corporate structure, our staff can file the appropriate amendments, annual reports or dissolution certificates on your behalf. Take the worry out of managing your Business & Corporate Compliance with our Annual Entity Update Service.
ICS can provide entity filing and registration services in all 50 states. Our staff is professional, courteous and reliable, and all services are fully guaranteed.
Contact ICS today and let up take care of your business filings while you focus on what you do best…running your business.
We look forward to incorporating your business for you and getting your business off the ground!