Reasons to incorporate your business now – Bent Enterprise

Reasons to incorporate your business now

As a business owner, if this question popping in your mind “Is it the right time to form an official business structure for my company? Then you have landed on the right page as we are going to discuss on “Reasons to incorporate your company now”. Look into the reasons to incorporate your business to understand the very essence of it.

But, before we dive into its reasons, we need to know “What does it mean to be incorporate?” “Define your Business both legally and strategically by forming a new corporation is an apt definition of a Incorporate.

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.

With all the above-discussed benefits now your qualms on why to incorporate my business would have evaded from your mind. Isn’t it right? All you got to do is decide which kind of corporations, S corp or C corp or LLC will best suit your business and register accordingly.

When you incorporate your business you are laying a strong path towards the success of your business. The process of incorporate involves certain documents to be submitted, such as “Articles of Incorporation”. You can approach a lawyer to incorporate your business or even incorporate online.

Where to incorporate?

You can incorporate your business in the state where you live. In fact, many business owners are interested to incorporate their businesses in multiple states as it proves to be beneficial when the business grows.

Are you ready to incorporate your business today?