Have you considered incorporating your small business? Whether you are handling the process from scratch or purchasing an existing company, it’s important to contact incorporation lawyers for advice. The laws vary depending on the jurisdiction and corporation. An experienced attorney will guide you through the laws so that you can make smart, profitable decisions for your business.
In the meantime, here are advantages to incorporating your small business.
Limited Liability
Limited liability is one of the main reasons why businesses become corporations. Corporations are legal entities. By incorporating your business, your assets are protected, even if you are facing debt or other types of liabilities.
Tax Benefits
Owning a corporation means that you are only taxed on your salary, bonuses and dividend payments. You may also qualify for other types of tax benefits such as insurance premium deductions, income splitting and deferred tax payments.
Business Reputation
An incorporated business often has a stronger reputation. This can make it easier to build relationships with investors and raise capital. Additionally, you may attract and retain quality employees because of the stock structure that allows board members and employees to share in ownership.
Transferability
An incorporated business is not tied to its owner. If you pass away or leave the business, it will continue to exist. Therefore, your business can be transferred to another individual by selling stock. The shareholders can also choose to dissolve the business or merge it with another entity.
Working with an Attorney to Incorporate Your Small Business
There are many factors to consider when choosing to incorporate your small business or keep it as a sole proprietorship. When meeting with incorporation lawyers, ask them to list out the pros and cons. It’s possible that you may decide to leave things as is because of the loss of personal ownership. In many cases, business owners do choose to proceed with the incorporation process because of the limited liability and tax benefits they can acquire.
To arrange for a consultation to discuss incorporation for your business, contact the office of Susan G. Pinkston
