Importance of incorporating your business
Many of you might question “is it important to have a legal business structure”? Well, in reply, I must say it is very important to have a legal business structure if you are starting any form of business. Incorporating is the process of legally declaring a corporate body as separate from its owners. This will act as a defending tool in favor of a business owner to protect his or her personal assets from confiscation at any time. When you incorporate your business, it becomes its own legal structure separate from its owners.
In the United States, many individuals are seen doing incorporation in order to protect their property. However, there are some additional benefits of incorporating, such as it helps to save money in taxes, provides greater business flexibility, and lets to raise more capital easily. When doing incorporation, the business structure that you choose will have tax and legal implications. For this reason, it is important you choose the business structure first that will benefit your business the most.
Why incorporate is so important?
The strength and weakness of a small business will depend on the legal structure the owner chooses. However, there are some benefits that apply to Corporations and Limited Liability Companies (LLC). It includes the following.
- Minimize accountability: Both S Corp and LLCs allow owners to separate and protect their personal assets. If you operate a business as an unincorporated sole proprietorship, your ownership might be in stake, as you are liable for all of the business’ debt!
- Continuous existence: In a partnership or sole proprietorship, a company’s life is tied to the life and participation of the owner(s). Corporations and LLCs can continue to exist in spite of changing ownership.
- Tax Flexibility: Small businesses can save federal and state income taxes as well as federal payroll taxes by incorporating. Corporations can provide their employees, including shareholder-employees, with rich, tax-free peripheral benefits. S corps allows shareholders to avoid the corporate income tax on business profits and can even allow shareholder-employees to reduce the payroll taxes, if necessary.
- Deductible Expenses: For legal zoom and by incorporating your business, you may deduct regular business expenses, including employee salaries, etc.
Incorporation is an important step when starting a new business. BizCentral USA can assist you with this process, and help you determine what business structure is best for you.
The company offers true one-stop solution for necessary incorporation. The team offers complete filing support which includes drafting your articles of incorporation and providing detailed instructions for filing with government offices. They can also help with corporate records management, annual reports and meeting minutes, as well as corporate kits and company seal.
Why work with BizCentral USA?
The company has qualified, experienced professionals with an extensive experience for drafting articles of incorporation. They have answers to all possible questions or concerns you may have related to a legal structure. If you are unsure what legal structure to choose, you can call BizCentral USA to get their assistance in real-time!
Author Bio: The writer is an expert in the field of Incorporating with focus on Business start-up.