Why should I choose to incorporate my business?
1. Protect your personal assets. By forming a corporation, you separate your personal assets from the company, and are typically not personally responsible for business debts. So creditors can’t pursue your home or car to pay business debts.
2. Tax and other savings. Corporations often gain tax advantages, such as savings on self-employment taxes, and deductions for health insurance premiums and life insurance.
3. Attract investors. Incorporating is often a pre-requisite to getting outside investment, from sales of stock, or for borrowing money from professional investors or banks. It can also help you reach potential new customers and partners.
4. Easier transfer and sale. An incorporated business provides more security for purchasers and therefore can also be easier to sell than an unincorporated business.
5. Retirement planning. It can be easier to create retirement funds and qualified plans, like a 401(k) for yourself and employees.
This article presents the views of the author and do not necessarily reflect those of LegalForce RAPC or its clients. The information presented is general information and for educational purposes. No legal advice is intended to be conveyed; readers should consult with legal counsel with respect to any legal advice they require related to the subject matter of the article.