Let us now look at the benefits of being incorporate

• Personal Asset Protection: Being a small business owner, it would be tempting for you to ask “Why to incorporate now?” Both corporations and LLCs give protection over your personal assets. In fact, the incorporated business owners are less burdened and have restricted liability for their business debts and obligations. Please note that corporations have more corporate formalities than an LLC.
• Name credibility and additional protections: When you incorporate, your business legitimacy will increase instantly by adding “Inc” or “LLC” after your business name. Well, this credibility achieved after being incorporated helps you to achieve more business. In fact, the partners, consumers, and vendors would prefer to do business with an incorporated business rather than the one which is not.
• Tax Flexibility: Your business, irrespective of it being LLC or Sole proprietorship it is being taxed with the same amount. When you are taxed the same with an additional benefit of an incorporated business owner having limited exposure to personal liability, “isn’t it a clever decision to incorporate your business?”. In fact, the double taxation of corporate profits and dividends can be avoided in a corporation.
• Perpetual existence: Irrespective of the ownership changes, your incorporated business is going to run smoothly. Corporations and LLCs continue to exist with no influence of management changes. On contrary, Sole proprietorships and partnerships will see their end if the owner dies or leaves.
• Deductible expenses: Deducting normal business expenses before the income getting allocated to owners is the another benefit of an incorporated business and this includes their salaries too. This process is the same in both LLC as well as in corporations.