The major reasons why any business should incorporate

There are many benefits to incorporating your business, and fortunately converting the structure of your business to a corporation--LLC or Inc.--is easily done. Incorporated business have more chances to expand and become successful, and are also seen as more reliable by consumers.

Small businesses tend to launch as sole proprietorships, so they don't get to enjoy the benefits of being a LLC. Incorporating your business, however, is an important step towards growth and continued success; that said, you should make sure the type of business structure you select aligns with your business plans and goals.

Provides personal asset protection

Incorporating means that you can easily separate your personal assets from your company's, and protect them accordingly when you switch the structure of your company to a corporation or LLC. The primary differences between an incorporated business and a sole proprietorship are 1) how your business is set up and run, and 2) the corporate formalities that you have to abide by. The benefits, however, such as ensuring the safety of your personal assets, tend to outweigh the brief irritations that may arise from adjusting to incorporation.

Exist perpetually

An incorporated company can exist even when its ownership changes. There are many other types of company that may dissolve with a change of owners, but a company secured with the structure corporations tend to not suffer such fates unless the owner decides to change it the business' status or dissolves it.

LLC and taxation flexibility

Adhering to the business structure required by LLC or Inc. often results in some type of tax exemption. You can avoid double taxation by selecting subchapter S tax status, while C corporations can provide their employees with tax-free fringe benefits. In short, though you may have to pay tax returns on business and personal levels, there are ways in which you can avoid paying excess.

Deductible expenses

This kind of business set up allows you to deduct expenses such as the salaries of the employees. You can easily deduct normal expenses of the company without having to go through the hassle of doing so as an unincorporated business.

Additional creditability and name protection

Businesses which have a "Inc." or the "LLC" tag after the name of the company enjoy more creditability than the ones without such formal set-ups. It adds authority, and also helps increase business as most consumers like to work with an incorporated business. Incorporation also protects your business' corporate designation (ex. XYZ Inc.) name.

For more information regarding Incorporation, please visit our Online Marketing or Contact Us at 407-857-9002.

BizCentral USA offers over 30 business solutions. Incorporation, business plans, marketing and more!